Wal-Mart Goes Organic

Updated from 6:17 p.m. EST

As Wal-Mart (WMT Quote) goes green, it also breeds fear.

The retailing juggernaut tends to get knees quivering wherever it sets it sights. It already created havoc in the traditional grocery sector when it expanded its food offerings. Next, market watchers say the company's move into providing banking services could eventually be felt in the financial-services sector. The latest to fall prey to fears of Wal-Mart are Wall Street's favorite health-food market chains.

Whole Foods Market (WFMI Quote) and Wild Oats Market (OATS Quote) both traded lower Wednesday after Wal-Mart told analysts at the Bear Stearns Retail, Restaurants and Consumer Conference that it had plans to expand its organic foods offerings. ...