c-whole-RTS1627Y-Shannon Stapleton

The Amazon-Whole Foods deal cost Walmart, Costco, and Kroger $18.8 billion in market value

$18.8 billion

Walmart, Costco, and Kroger lost $18.8 billion in market capitalization on Friday (June 16), after Amazon announced it would buy Whole Foods.

Published   |  Photo by Reuters/Shannon Stapleton
c-whole-RTS1627Y-Shannon Stapleton
$18.8 billion

The news that Amazon was backing a competitor caused drops in retailers’ stocks—Walmart fell by 5%, Costco by 7%, and Kroger by 9%.

c-whole-RTS1627Y-Shannon Stapleton
$18.8 billion

Their combined market value went from $338 billion on Thursday to $320 billion on Friday.

c-whole-RTS1627Y-Shannon Stapleton
$18.8 billion

Besides affecting direct competitors, the Amazon-Whole Foods deal also hit food makers, like Hershey, Campbell Soup, and Kellogg.

c-whole-RTS1627Y-Shannon Stapleton
$18.8 billion

Traders expect those companies to suffer further if Amazon cuts prices at Whole Foods.

Chopped onions for sale are pictured inside a Whole Foods Market in the Manhattan borough of New York City, New York, U.S. June 16, 2017.

Reuters/Carlo Allegri

c-whole-RTS1627Y-Shannon Stapleton
$18.8 billion

The effects of the deal did not stop there. Reuters calculated that almost 30 firms lost $34 billion in market capitalization once the purchase was announced.

c-whole-RTS1627Y-Shannon Stapleton
$18.8 billion

Stocks fell for firms in sectors like transportation, food processing, and pharmacy.

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