Daily Trends Now
Daily Trends Now

Amazon moves fast to cut Whole Foods prices

Amazon moves fast to cut Whole Foods prices

Beyond the pressure this means for other grocers, the merger is also a signal of good things to come for consumers. "And this is just the beginning - we will make Amazon Prime the customer rewards program at Whole Foods Market and continuously lower prices as we invent together. There is significant work and opportunity ahead, and we're thrilled to get started".

The price slashing will happen incrementally, according to The Washington Post.

In addition, Whole Food stores tend to be "in more affluent areas". "I won't be surprised if some prices are lowered 15 percent to as high as 25 percent in some categories".

Will retailer's stock continue to be affected as the Whole Foods and Amazon grocery announcements continue to roll in?

"The speed with which Amazon intends to adjust pricing across the Whole Foods network will force changes in the way the industry operates", Portell told FierceRetail.

Whole Foods Market brands, like 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch, will also be available on Amazon.com, AmazonFresh, Prime Pantry and Prime Now after the merger. Signs at the Westport store this week promoted Whole Foods' delivery services; this week, Stew Leonard Jr. predicted that within five years, 20 percent of the sales rung up at his Stew Leonard's chain will be delivered to customers.

The prospect of declining profit margins is less of a problem, analysts say, for a technology giant like Amazon, making it possible for Seattle-based company to double down in way Whole Foods couldn't on its own. The deal received regulatory approval from the Federal Trade Commission - as well as a green light from Whole Foods shareholders - on Wednesday.

"The reductions have, quite honestly, been haphazard and they've done very little to change peoples' perception of the company", said Neil Saunders, managing director of GlobalData Retail in NY.

Amazon is wasting no time in making the most of its newest division.

Wall Street analysts once fretted about the cost to the company of Prime's free two-day shipping.

If you're an Amazon Prime member, you will have another way to use your membership and take advantage of lower Whole Foods prices.

News of the deal has rattled the grocery industry, which is already struggling to keep up with growing competition. However, rivals should be under no illusion that they are now dealing with a competitor that is not afraid to damage profits and margins if it creates long term gains.

Shares of Kroger, the biggest United States supermarket operator, closed down 8 percent, while Wal-Mart, the biggest USA food seller, closed down 2 percent.


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