Amazon.com's aggressive plan to acquire Whole Foods Market Inc. in a deal valued at $13.7 billion sent major food and retail stocks tumbling today, a likely precursor to the disruption to come as Jeff Bezos turns his fortune toward the grocery sector.
A wide range of grocery retailers and wholesalers were stung by the news, a slate of blue-chip companies with Colorado footprints that includes Kroger Co. (NYSE: KR), parent of the King Soopers and City Market chains; Sprouts Farmers Market Inc. (Nasdaq: SFM); Wal-Mart Stores Inc. (NYSE: WMT), Colorado's biggest private employer; and Costco Wholesale Corp. (NYSE: COST).
On Friday, Whole Foods Market announced it is being bought by Amazon.com in a major shake-up for both the Austin-based natural grocery chain and the Seattle-based e-commerce giant.
Wall Street made its sentiments known within minutes after the deal was announced. Virtually every major food-retail and distribution stock took a hit following the deal's announcement, with some falling in the double digits. Many stocks recovered some ground by midday trading.
Read more and check out their slideshow on closing prices after the announcement on the Denver Business Journal.