Amazon Cuts Whole Food Prices, Continued… The UK Supermarket Industry
As some anticipated on Friday, after the announcement that Amazon would be cutting Whole Foods prices this week, the supermarket industry has taken a hit.
Reports say that European supermarket stocks extended declines Tuesday after Amazon cut prices at Whole Foods by as much as 43% on Monday the 28th August.
The UK Supermarket Industry
Today, UK supermarkets have taken a hit due to the Whole Food price cuts and the introduction of Whole Foods on Amazon UK. This was the first chance that the UK supermarkets had to react to the price cut and introduction on Amazon’s UK after markets were closed Monday for a public holiday.
British supermarket Wm Morrison plc so far has been the worst hit. Falling up to 2.15% to change hands at 246p and extending a three-month decline of 0.73%.
Other large UK supermarkets which were also down in morning trading are J Sainsbury plc down 1.42% to 233.16p.
Alongside, Tesco losing 1.19% to 182 pp.
Looking further afield
Royal Ahold Delhaize, the Dutch owner of Food Lion, lost 2.06% in Tuesday trading to €14.77, extending a five-day loss of 11.5%. Ahold Delhaize, which also owns Stop & Shop and Hannaford, is seeing pressure on margins in its U.S. division and doesn’t expect any margin growth in the second half of the year.
Carrefour, the world’s second largest retailer, was down 1.40% in Paris to €19.32, extending a 5.2% loss over the past five days.
So, what does the future hold for the supermarket industry? Only time can tell…
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All graphs are taken from Yahoo Finance.
Author- Becki Leighton from Trading.co.uk