NEW YORK, June 16 Shares of U.S. and European
supermarket chains and retailers tumbled on Friday after online
retailing giant Amazon.com Inc said it would buy Whole
Foods Market Inc in a deal valued at about $13.7
Kroger shares slumped 11 percent, United Natural
Foods Inc tumbled 17 percent, Sprouts Farmers Market
Inc sank 11 percent.
The S&P 500 food and staples retailing index was
off 5 percent.
"Again we see Amazon leading, and other supermarkets
following. How they plan to implement technology in the buying
experience remains to be seen," said Phil Bak, chief executive
of ACSI Funds, an asset manager.
The news hurt shares of large diversified retailers as well.
Wal-Mart dropped 6 percent and Target Corp
dropped 10.6 percent.
The fallout also spread to Europe. Supermarket chain Tesco
Plc shed 2.9 percent and Carrefour dipped 2.6
"Amazon's got its tentacles everywhere and that's another
place to go," said Bruce Bittles, Sarasota, Florida-based chief
investment strategist at R.W. Baird & Co. "Amazon sees that
industry changing significantly – and they see that people don't
necessary go to the grocery store anymore."
Amazon.com shares gained 2.3 percent after the
(Reporting by Lewis Krauskopf, Sinead Carew, Chuck Mikolajczak
and Jonathan Spicer, and Anyageorge Tharakan in Bengaluru;
Editing by Bernadette Baum)