Amazon.com, Inc. (NASDAQ: AMZN)’s
acquisition of Whole Foods Market, Inc. (NASDAQ: WFM) isn’t just a change-in-hands of grocery assets. It’s a critical play in
distribution centers.
“I think this shows they’re rapidly expanding Prime Fresh and can deliver through 400-plus distribution points instead of
through 20-plus now,” Wedbush analyst Michael Pachter told Benzinga. “They can figure out last-mile logistics, but they step up
their distribution capability to within one hour of probably 75 – 85 percent of households with this move. This shows that they are
serious about grocery as a category, and WFM has good distribution capability.”
The effects on publicly traded companies are widespread, and the market immediately reacted to the news with hits to grocery
peers.
-
Wal-Mart Stores Inc (NYSE: WMT) fell 5.7
percent.
-
Kroger Co (NYSE: KR) fell 12 percent.
-
Sprouts Farmers Market Inc (NASDAQ: SFM)
fell 13.2 percent.
-
Costco Wholesale Corporation (NASDAQ: COST) fell 7 percent.
-
Target Corporation (NYSE: TGT) fell 12
percent.
-
United Natural Foods, Inc. (NASDAQ: UNFI) fell 21.8 percent.
-
SUPERVALU INC. (NYSE: SVU) fell 19.4
percent.
-
SpartanNash Co (NASDAQ: SPTN) fell 5.1
percent.
Latest Ratings for AMZN
| Date |
Firm |
Action |
From |
To |
| Apr 2017 |
Benchmark |
Reiterates |
Buy |
Buy |
| Apr 2017 |
Pacific Crest |
Downgrades |
Overweight |
Sector Weight |
| Apr 2017 |
Raymond James |
Downgrades |
Outperform |
Market Perform |
View More Analyst Ratings for
AMZN
View the Latest Analyst Ratings
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