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VOL. 41 | NO. 24 | Friday, June 16, 2017
Grocery store stocks plummet after Amazon-Whole Foods deal
By The Associated Press
Amazon's acquisition of Whole Foods Market is sending the stocks of grocery store operators and other companies that compete with Whole Foods plunging.
Investors worry that Amazon, which has already won over hordes of shoppers of clothing, electronics and many other kinds of goods, wreaking havoc on department stores and other brick-and-mortar retailers, will do the same thing with groceries.
Here's a look at some of the big moves happening in the stock market following news of Amazon's acquisition of Whole Foods Market.
—Amazon. Investors like the deal and think it will be good for the online retail giant, which has been expanding its grocery offerings. Amazon's stock, which recently traded over $1,000 for the first time, was up $34.15, or 3.5 percent, at $998.56.
THE ACQUISITION TARGET:
— Whole Foods Market. The natural foods retailer helped start a trend toward natural and organic foods, but its stock has struggled in recent years and recently the company shook up its board and said it would cut costs. The stock peaked at $65.24 in October 2013 and traded as low as $28.53 in March. On Friday it soared $8.87, or 27 percent, to $41.92, pennies below the $42 a share Amazon agreed to pay.
— Wal-Mart Stores. The giant retailer sank $4.98, or 6 percent, to $73.91.
— Target. The retailer fell $5.55, or 10 percent, to $49.90.
— Costco. The wholesale club company gave up $12.44, or 6.9 percent, $167.64.
— Supervalu. The grocery store operator lost 60 cents, or 16 percent, to $3.16.
— United Natural Foods. The purveyor of natural and organic foods suffered gave back $6.07, or 16 percent, to $33.94.
— Kroger. The grocery store chain declined $3.42, or 13.9 percent, to $21.14.
— Sysco Foods. The food distributor sank $2.46, or 4.4 percent, to $53.07.
— Cal-Maine Foods. The egg producer fell $2.85, or 7.3 percent, to $36.25.
— CVS Health. The drugstore company lost $3.64, or 4.5 percent, to $76.45.