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Walmart doesn’t need to challenge Amazon’s $13.7 billion bid for Whole Foods.

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Walmart isn’t planning to challenge Amazon’s $13.7 billion bid for Whole Foods, Reuters reported Friday, citing a source familiar with the matter.

The news comes amid growing speculation that another company will try to outbid Amazon for the grocery chain, with Walmart repeatedly cited as a top contender.

But that speculation has been wildly off base, according to some analysts.

Here’s why: Walmart doesn’t need to buy Whole Foods to dominate the grocery market. It’s already the top grocery chain in the US by a long-shot, with 21% market share, compared to…