atans1

Amazon US deal affects S’pore listco

In Uncategorized on 20/06/2017 at 2:06 pm

Amazon.com just bought its way to the top of the food chain. The e-commerce titan is going whole hog for U.S. groceries with the $13.7 billion acquisition of upscale chain Whole Foods Market. Amazon’s comfort with low margins and savvy in logistics make it so fearsome a rival that investors in the sector ran for cover.

There’s a strong sense from investors that Amazon is upending the entire business. Its own market value increased by $15 billion on the news. More significantly, it caused some $30 billion to disappear from Costco, Wal-Mart Stores, Kroger, Supervalu and other grocery vendors. Fears of Amazon’s domination went global, with UK supermarket chains getting hit, too.

Reuters last friday

In Asia, Oz supermarket shares suffered.

Here Jardine Matheson Holdings, whose subsidiaries include a supermarket operator, was down 1.3% and one of only four stocks in the 30-member Straits Times to be in negative territory yesterday. STI up 0.4% yesterday.

Jardines today down under 1.5% so far.

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