Amazon’s (AMZN) Whole Foods announced price cuts once again. The high-end grocery chain plans to drop prices on some of its best-selling grocery items and holiday staples this quarter. Amazon Prime members will also get deeper discounts on items including organic turkeys.
So how are other food stocks reacting on the news? Not well.
Shares of Campbell Soup (CPB), J.M. Smucker (SJM), and grocery chain Kroger (KR) all fell on the announcement.
However, the price cuts might be mostly a publicity stunt.
After the last cuts in August, research firm Gordon Haskett surveyed 110 Whole Foods’ products over a five-week period and found that while prices were lower, they weren’t as discounted as some of the headlines made it seem. Prices only dropped about 1.2% on average.
Today’s other big movers
Dick’s Sporting Goods (DKS) is jumping 5% after an upgrade to overweight at JPMorgan. Analysts expect the retailer to be a long-term survivor in the sporting goods sector and forecast decreased promotional pressure on inventories next year.
Square (SQ) is trading 2.5% higher after reports that the mobile payments company is testing support for Bitcoin through its cash payments app. Credit Suisse analysts note that the move could give Square an advantage in cryptocurrency services.
Target (TGT) shares are down 9.6% despite posting an earnings, revenue and same-store sales beat. The midpoint of its fourth-quarter earnings guidance was below Street estimates, and gross margins were weaker partially due to promotional efforts.
