Amazon-Whole Foods deal hammers grocery stores; Dow ticks up


Amazon’s $13.7 billion deal for Whole Foods sent grocery stores, big retailers, and food makers and distributors plunging Friday. Energy companies rose while other stocks were little changed.

It’s rare for a single deal to have a big effect on the broader stock market, but Amazon’s agreement to buy Whole Foods Market did. Investors wondered if Amazon will do to grocery stores and supermarkets what it’s done to sellers of goods like clothing and office supplies: force them to make big changes or be supplanted.

Neil Saunders, managing director of the research firm Global Data Retail, said Amazon is likely to push supermarkets and grocery stores to slash prices, which will affect the companies that make and distribute those products.

“As Amazon enters the grocery market proper, it will put a lot more pressure on existing grocers,” he said. “Those grocers will respond by cutting…



Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *