Grocery stocks fall again as Amazon cuts prices at Whole Foods

Finance


Amazon traded about 0.4 percent higher.

Ben Bienvenu, a research analyst at Stephens, noted that Sprouts has more overlap than other retailers with Whole Foods’ business and attributed the outsized decline in Sprouts’ shares to “the price changes that we’ve seen in Whole Foods’ stores” and “exposure to Texas and potential for some store closures associated with Hurricane Harvey.”

He has an equal weight rating on Sprouts shares.

Harvey weakened to a tropical storm after landfall but is still causing historic flooding in Houston, Texas, where Sprouts has seven locations, according to its website.

“I think perception also matters,” Bienvenu said. “If Whole Foods can be successful at [changing] what the customer thinks is a fair price for an organic item, there are implications beyond store overlaps.”

— CNBC’s Lauren Thomas contributed to this report.



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