Aug 25, 2017 - Economy & Business

Investors worry Whole Foods price cuts will spark grocery war

Grocery stocks were clobbered Thursday afternoon after Amazon announced that it will be cutting prices at Whole Foods. Shares in both Kroger and Walmart—which generates more than half its revenue from grocery sales—fell on the news, with Kroger down more than 8%.

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Data: Money.net; Chart: Andrew Witherspoon / Axios

Amazon will begin with price cuts to some organic fruits and vegetables, egg, organic rotisserie chicken and ground beef, among other items. ""We're determined to make healthy and organic food affordable for everyone," Amazon said in a statement.

Why it matters: Amazon is in a unique position, because so far its investors have put up with the firm making very little in profit, on the hopes that it will continue to gain market share in the growing number of sectors in which it competes. Meanwhile, the grocery segment already operates with very low margins of less than 2% according to IBISWorld, compared with an overall 8.8% margin for the S&P 500. Logic dictates that investors will eventually revolt if Amazon refuses to raise profits, but this may come too late for competitors in the grocery segment.

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Axios
Updated 24 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 19,451,097 — Total deaths: 722,835 — Total recoveries — 11,788,665 — Map.
  2. U.S.: Total confirmed cases as of 2. p.m. ET: 4,968,413 — Total deaths: 161,858 — Total recoveries: 1,623,870 — Total tests: 60,415,558 — Map.
  3. Public health: Fauci says chances are "not great" that COVID-19 vaccine will be 98% effective.
  4. Science: Indoor air is the next coronavirus frontline.
  5. Schools: How back-to-school is playing out in the South as coronavirus rages on — Princeton, Johns Hopkins, Howard to hold fall classes online.
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What's next for Lebanon after the Beirut explosion

Photo: Houssam Shbaro/Anadolu Agency via Getty Images

Beirut residents are still clearing rubble from streets that appear war-torn, days after a blast that shocked the country and horrified the world.

Why it matters: The explosion is likely to accelerate a painful cycle Lebanon was already living through — discontent, economic distress, and emigration.

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Wolf Blitzer marks 15 years in "The Situation Room"

Wolf Blitzer on the White House beat in 1993, along with NBC's Brian Williams, CBS' Rita Braver and ABC's Brit Hume. Photo: Paul J. Richards/AFP via Getty Images H

Aug. 8, 2005 — "The Situation Room's" debut on CNN wherein the host first said: "I'm Wolf Blitzer and you're in The Situation Room, where news and information from around the world arrive in one place simultaneously!"

The state of play: When the pandemic took off in the U.S. in March, Blitzer started working 7 days a week for 60+ days, until he took a Sunday off. Then he continued 7 days a week until he took a few days off.

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