Kroger Takes a $7 Billion Hit as Amazon Deal Compounds Struggles
- ‘Knife fight’ looms as grocer battles Wal-Mart, internet giant
- Largest U.S. supermarket chain has been battered by deflation
Why the Amazon Deal Is a Seismic Shift in the Industry
This article is for subscribers only.
Kroger Co. was already in trouble last week -- and then Amazon said it would buy Whole Foods.
The biggest U.S. supermarket chain lost more than $7 billion in market value combined on Thursday and Friday, the biggest two-day loss for the company since December 1999. The 19 percent plummet on Thursday was thanks to a lousy earnings report. The 9 percent drop the next day was courtesy of Amazon.com Inc.’s announcement about acquiring Whole Foods Market Inc. If Amazon pulls that deal off, the competition will be even more cutthroat in an industry known for razor-thin profit margins.