Amazon.com Inc (AMZN.O) said it will cut prices on a range of popular goods as it completes its acquisition of Whole Foods Market Inc (WFM.O), sending shares of rival grocers tumbling on fears that brutal market share battles will intensify.
Amazon’s $13.7 billion purchase of Whole Foods, which will be completed on Monday, has been hanging over a brick-and-mortar retail sector unsure of how to respond to the world’s biggest online retailer.
Shares of Kroger Co (KR.N), the biggest U.S. supermarket operator, closed down 8 percent, while Wal-Mart Stores Inc (WMT.N), the biggest U.S. food seller, closed down 2 percent.
Amazon also said it will start selling Whole Foods brand products on its website, a move that sent down shares of packaged food sellers including Kellogg Co (K.N).
The S&P 500 Food Retail index closed down almost 5 percent as more than $10 billion was wiped off the market value of big food sellers.