- Grocery store stocks are lower after Reuters reports that Wal-Mart (WMT -1%) is running a pricing test in 1,200 U.S. stores. The company is reportedly putting pressure on consumer packaged goods suppliers in order to protect margins.
- Consumer names such as Procter & Gamble (PG -0.7%), Church & Dwight (CHD -0.4%), Colgate-Palmolive (CL -1%), Seneca Foods (SENEB), General Mills (GIS -2.3%), Kellogg (K -1.5%) and Kimberly Clark (KMB -0.9%) are all modestly lower on the day.
- Seeking Alpha gave a heads-up to grocery store investors last week on the WMT development, but the rest of the market seems to be just catching up today. Kroger (NYSE:KR) -3.36%. Smart & Final Stores (NYSE:SFS) -2.42%. Weis Markets (NYSE:WMK) -2.75%. Whole Foods (WFM) -2.00%. Village Super Market (NASDAQ:VLGEA) -1.82%. Supervalu (NYSE:SVU) -1.15%.
- Target (NYSE:TGT) is still in positive territory with a 0.15% gain, but could also feel an impact from Wal-Mart pricing initiative. Look for that question on the Target earnings call tomorrow.
- A prolonged effort by Wal-Main to gain market share through basement pricing could create even more ripples in the retail sector and give Amazon (AMZN +0.8%) something to think about.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PMR, UGE, SZK, CNDF, FTXD, JHMC.