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MONEY

Whole Foods Price Cut

Amazon cut prices at Whole Foods Market by almost 43% on its first day of ownership.

The tech giants recently purchased high-end supermarket chain in an acquisition deal worth $13.7 billion. The move sent shockwaves through the supermarket industry. In addition, the online retailer now enters in direct competition with the likes of Wal-Mart.

The food outlet has been considered at the more expensive end for grocery shopping. Its prices have been higher than rivals in the industry. Amazon wasted little time in changing the prices displayed in their stores. In an outlet in Manhattan, the price of organic Fuji apples fell from $3.49 a pound to $1.99 a pound. Organic avocados went from $2.79 each to $1.99. Organic rotisserie chicken dropped to $9.99 from $13.99.

Future Vision

Amazon released a statement declaring their vision for the future of Whole Foods following the merger. They said that the company planned to offer more in-store benefits for customers. Furthermore, they would offer lower prices as the two companies integrate their operations. They said:

 

  • Starting Monday, Whole Foods Market will offer lower prices on a selection of best-selling staples across its stores, with much more to come. Customers will enjoy lower prices on products like Whole Trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and tilapia, organic baby kale and baby lettuce, animal-welfare-rated 85% lean ground beef, creamy and crunchy almond butter, organic Gala and Fuji apples, organic rotisserie chicken, 365 Everyday Value organic butter, and much more.
  • In the future, after certain technical integration work is complete, Amazon Prime will become Whole Foods Market’s customer rewards program, providing Prime members with special savings and other in-store benefits.
  • Whole Foods Market’s healthy and high-quality private label products—including 365 Everyday Value, Whole Paws and Whole Catch—will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
  • Amazon Lockers will be available in select Whole Foods Market stores. Customers can have products shipped from Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.

Expansion

The long-term plan for Amazon is to turn Whole Foods into a company which can rival the activities of Wal-Mart. It is their intention that the outlets will become hubs for its ship-to-store e-commerce vision.

Many Whole Foods remained open well into the night. This was in order for staff to make the necessary changes to displayed prices. Amazon plans to bring down the price of many other in-house groceries too. However, in some cities, Whole Foods remains the more expensive option for consumers compared with other competitors.

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