The comes deal as Whole Foods has been trying to fend off pressure from shareholders frustrated by a sluggish stock price. Several months ago, the grocery store chain faced heat faced heat from an activist investor that called on leadership to overhaul the company or sell, prompting CEO John Mackey to call them "greedy bastards" in an interview with Texas Monthly. "Those grocers will respond by cutting prices and that will cut profits for the distributors".
The S&P 500 consumer staples index ended down 1 percent. The Nasdaq composite fell 13.74 points, or 0.2 percent, to 6,151.76. Until now, Amazon has largely focused its grocery efforts around its Amazon Fresh subscription service, which promises quick food delivery for online orders. (OK, not really, but it feels like that, doesn't it?) Getting into the grocery business is not easy, but by scooping up ownership shares in Whole Foods, it bought the company's logistic know-how. Amazon had more than 300 million users as of February.
Empire: The parent company of several grocery store chains offers online shopping with either delivery, in-store pickup or both at several IGA locations.
However, it seemed to find the true path to success in this field by realizing that it's okay to invest in physical retail space.
Whole Foods will still operate under their original name, which, over the years, has become increasingly synonymous with organic and eco-friendly products. As of 12:42 p.m. EDT, Wal-Mart stock was down about 4.5%.
Walmart (WMT) stock tumbled 5% on Friday.
"I would not like to be somebody playing in the grocery space right now", said Jan Rogers Kniffen, chief executive of retail consultancy firm J. Rogers Kniffen WWE in NY.
But Amazon's not going away and that will incite change, he said.
- Kroger. The grocery store chain declined $2.27, or 9.2 percent, to $22.29.
Whether you've been a Whole Foodie for 30 days or 30 years, you have been an important part of making Whole Foods Market what it is today.
Kroger was the biggest loser on the S&P 500, down 14 percent; while Sprouts Farmers Market was off almost 10 percent. One day, these stores might even serve as launch centers for Amazon's delivery drones.
"It gives Amazon 455 mini-distribution centers or warehouses, if you may, to distribute and deliver those food products that it's been wanting to do for a while", he said. This "district energy" system works by capturing heat generated at the Westin Building data center and recycling the heat through underground water pipes instead of venting it into the atmosphere. The shopper's Amazon account gets automatically charged. The stock fell $7.43, or 18.9 percent, to $31.90. Shares of Mondelez International Inc, the owner of Oreo cookies and the whole Nabisco brand, were down 1.1 percent while Kraft Heinz Co dropped 2.6 percent and Hershey Co was down 2.5 percent.