A “Death by Amazon” index tracked by a research firm had its worst day on record Friday following Amazon‘s announcement that it’s planning to acquire grocer Whole Foods and disrupt yet another industry. The selling continued on Monday.
As described by its creator, Bespoke Investment Group, the index tracks the performance of traditional retailers most affected by the transition from “bricks to clicks,” in the way that consumers are purchasing goods.
The list of more than 30 names includes J.C. Penney, Macy’s, Wal-Mart, Barnes & Noble, Best Buy and Kroger, among others.
What Bespoke has dubbed “Whole Foods Friday” rocked the retail index to a decline of more than 4 percent, marking its worst daily performance on record and dropping to its lowest level in more than three years. Notably, the overall market was up on Friday.
“Retail sales are coming online … sucking share from traditional retailers,” Paul Hickey, co-founder of Bespoke, told CNBC’s “Power Lunch” Monday. “What we’re seeing is people can shop other places, [but] choose to shop Amazon because it’s most convenient.”
As Amazon moves further into the turf of traditional retailers like Target and Walgreen, consumer preferences are also changing, with shoppers searching for experiences over goods, Hickey added.
