Apparel Retailer Stock Dive As Amazon's New Prime Wardrobe Strikes Fear In Investors

By Tomi Kilgore Markets MarketWatch Pulse

Shares of apparel retailers took a dive Tuesday, after Amazon.com Inc. appeared to take aim with the launch of its new Prime Wardrobe service, which allows users to try on multiple items at a time at home and receive a discount on items that are kept. Shares of Ascena Retail Group Inc.'s , the parent of apparel retailers including AnnTaylor, Charming Shoppes and The Dress Barn, tumbled 7.8%. Elsewhere, shares of Gap Inc. shed 3.8%, Abercrombie & Fitch Co. slid 3.6%, American Eagle Outfitters Inc. slumped 3.9%, Buckle Inc. fell 3.8% and Express Inc. dropped 3.4%. Among clothes-sellilng department store chains, shares of Nordstrom Inc. gave up 3.5%, Macy's Inc. lost 1.9% and Dillard's Inc. declined 4.5%. Meanwhile, Amazon's stock edged up 0.1%. Amazon sparked a selloff in grocery store stocks after announcing a deal Friday to buy Whole Foods Market Inc. for $13.7 billion. Analysts fear Amazon's move into a sector introduces a potential major competitor that will lead to lower prices and narrower margins. The SPDR S&P Retail ETF shed 1.8%, while the S&P 500 slipped 0.4%.

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