CINCINNATI, OH – Amazon sent the buy-side grocery sector into a whirlwind of activity earlier this year when it announced its intent to purchase Whole Foods. The impact is far from over, or so it seems. As the deal was cleared this week by the FTC, Amazon and Whole Foods unleashed their new grocery strategy, causing retail stocks to plunge downwards.

Kroger was one of those that felt the effect of this announcement, with The Cincinnati Business Courier reporting that the retailer’s stock plunged 8 percent on Thursday. This brought Kroger’s stock as low as $21.10. 

Amazon and Whole Foods announced in a joint statement that the acquisition will be completed by Monday, August 28. Part of the new strategy being brought to Whole Foods is lowered prices for items including produce, with even more discounts expected.

As our team previously covered, this isn’t the first time that retailers have felt the ripple effect of Amazon’s entry into brick and mortar grocery. When the news of the acquisition first broke, the disruption to the industry caused Amazon and Whole Foods stock to jump upwards, while other retailer’s plummeted down. Upon the initial announcement, Kroger’s stock dropped nine percent. Prior to the acquisition's existence, Kroger's stock was upwards of $30. 

Kroger’s current stock is already on the rebound, with its current stock up 3.28 percent at $21.88. The retailer’s price to earning ratio as of today at 1:33 p.m. EST was 13.13.

Will retailer’s stock continue to be affected as the Whole Foods and Amazon grocery announcements continue to roll in?

Kroger