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.


editors' picks

August 25, 2017
'Sanity will prevail': expert says as Trump ramps up NAFTA pressure
In an interview several weeks ago, Robert Holleyman said it was a serious tactical error when Trump made the threat in April. The truth is, the end of NAFTA would hurt all three partner countries.

August 24, 2017
Google And Walmart Forge Voice Shopping Partnership To Challenge Amazon
In January, it began offering free, two-day shipping and for grocery allows customers to order online and pick up at stores. To entice more users to Google Express, the company also removed the $10 per month or $95 per year membership fee.

August 24, 2017
What should you do with those eclipse glasses now?
While they know some glasses were printed with expiration dates of three years, NASA says those warnings are outdated themselves. In the weeks leading up to the event, lines of people looking to get special solar eclipse glasses stretched outside of shops.

August 23, 2017
President Trump visits Yuma, attends rally in Phoenix today
Trump is planning to be in Arpaio's home state on Tuesday, hosting a 2020 campaign for himself at a rally in Phoenix . Among Arizona residents who are 54 years old or younger, just 15 percent want Trump to pardon Arpaio.

August 23, 2017
Space station makes stunning appearance during solar eclipse
NASA photographer Joel Kowsky captured the ISS in the midst of the solar eclipse while looking skywards from Banner, Wyoming. But it's hard to top this series showing the International Space Station transiting the face of the partially-eclipsed sun.

August 22, 2017
Moscow to Further Examine US Decision to Limit Issuing Visas to Russians
According to the minister, Russia's response measures will depend on the further examination of the United States decision. The Kremlin order came only days after President Trump signed a law on new sanctions against Russian Federation .

August 21, 2017
3 in Preseason AP Poll
Starting the season ranked in the top 20 is familiar territory for the Georgia football team the past five years. The Crimson Tide was also named the nation's No. 1 team in the USA Today's Amway Coaches Poll released August 3.

August 21, 2017
Deportivo 0-3 Real Madrid: Match Report and Player Ratings
Real were without Cristiano Ronaldo, and will be for the next three games after his suspension in the Spanish Super Cup. The hosts nearly got one back when Guilherme turned in the box and fired a powerful effort against the crossbar.

August 20, 2017
Cheika blames defensive inadequacies for New Zealand defeat
Rieko Ioane scored twice in three minutes and Ryan Crotty also crossed for what amounted to three tries in the space of 420 seconds.

August 19, 2017
Russia, China Warn US Against Military Conflict With North Korea
When asked if Guam is part of the United States, Mattis said without hesitation, "Yeah, it sure is". Guam is about 3,200 kilometers (2,000 miles) from Pyongyang , North Korea's capital.