Super market stocks

Super market stocks

Posted: xivan Date: 12.07.2017

How Supermarket Stocks Performed in - Market Realist

The stocks of traditional grocery stores like Kroger were clobbered Friday after the deal was announced. So were Walmart and Target, which made big moves into groceries in recent years and now depend on food for a huge chunk of their sales.

The damage didn't stop there: Food companies themselves, like Hershey and Campbell Soup, also slumped because of investor concerns that Amazon will do for their products what it does for everything else -- cut prices ruthlessly. Amazon already had a relatively small grocery business of its own, Amazon Fresh, but its acquisition of Whole Foods is much more ominous sign for competitors.

Traditional grocers are already struggling with fierce competition and falling prices. Amazon's war chest and online strength, coupled with Whole Foods' brand power, could force grocers to cut costs and spend heavily on e-commerce.

Grocery stocks are getting clobbered after Amazon-Whole Foods deal - Jun. 16,

Target gets a third of its sales from those categories. Supermarket chains were already in trouble. Even before buying Whole Foods, Amazon had invested heavily in its food delivery business. Walmart has boosted its grocery business and private companies like Trader Joe's have also offered tough competition.

Food stocks also sank. Cereal stocks like Kellogg K , General Mills GIS and Post Holdings POST retreated as well. The concern is that Amazon's acquisition may force existing supermarkets to cut prices even on name brands, potentially squeezing the profit margins of these food companies. At the same time, Amazon has a private label food business that it can distribute at Whole Foods, while Whole Foods brands can be sold through Amazon's website.

Moreover, Amazon has just thrown its considerable weight behind a grocery chain in Whole Foods that doesn't sell many of those companies' name-brand products, like Frosted Flakes or Campbell Soup. Contrast the grocery carnage on Wall Street with the extreme optimism around Amazon. Start your day right with the latest news driving global markets, from major stock movers and key economic headlines to important events on the calendar.

Daily newsletter, Sunday through Friday.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. FactSet Research Systems Inc. Certain market data is the property of Chicago Mercantile Exchange Inc. A Time Warner Company. Terms under which this service is provided to you. Paul Ryan can't promise Obamacare tax cuts. Growing India Europe Going Global Traders Trumponomics Trump Inc.

Uber CEO Travis Kalanick resigns.

Evaluating Grocery Store Stocks

Business Culture Gadgets Future Startups Powering Your World Upstarts Innovative Cities Unhackable 15 Questions. Chevy Bolt EV named Top Safety Pick.

super market stocks

Log In Log Out. Why Amazon is buying Whole Foods. CNNMoney New York First published June 16, Social Surge - What's Trending. Looking for a low-interest loan?

Check out our review of Prosper. The search is over. We found the best stock brokers for online trading. How much do you need to retire? Use this calculator to find out Current mortgage rates can't be beat. Get the best rate with our tool.

Business Markets Investing Economy Tech. Personal Finance Small Business Luxury Media Video. Site Map Interactive Portfolio Job Search Real Estate Search. Loan Center Calculators Corrections Market Data Alerts News Alerts.

inserted by FC2 system