Amazon is in the business of everything and is one of the biggest companies in the world. When it makes moves, retailers feel it.
Amazon’s Nike deal took a billion dollar bite out of competing retailers
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Rani Molla was a senior correspondent at Vox and has been focusing her reporting on the future of work. She has covered business and technology for more than a decade — often in charts — including at Bloomberg and the Wall Street Journal.
News yesterday that Nike would be selling its sneakers directly through Amazon wreaked havoc on other sporting retailers. Competing sports businesses have lost over $1 billion in market value in just one day as the stock market reckons how badly the deal might affect other major Nike sellers.
J.C. Penney and Foot Locker saw the biggest single-day declines at about 6 percent and 5 percent, respectively. Nike, on the other hand, saw its stock increase 2 percent.
Amazon’s announcement last week that it was acquiring Whole Foods was a much steeper — and still lasting — shock to supermarket values. Supermarket rivals have maintained a combined market loss of over $21 billion since last Friday.
Amazon is the clear winner in all these deals. Since last week it has gained $18 billion in market cap — or over $4 billion more than it needed to buy Whole Foods.
This article originally appeared on Recode.net.
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