Whole Foods just got a whole lot less expensive, thanks to Amazon’s official acquisition on Monday.
Video of the Day
After purchasing the high-end grocery store chain for $13.7 billion, Amazon began immediately cutting prices at Whole Foods Market by as much as 43 percent. According to Bloomberg, the retail giant is clearly focused on revamping the grocery store’s “Whole Paycheck” reputation and wants to stay competitive with more budget-friendly grocery stores like Walmart, Kroger and Costco.
The most noticeable price cuts at Whole Foods can be found in the produce and meat/seafood sections:
- Avocados dropped from $2.79 to $1.99 each.
- Organic bananas dropped from from $0.99 to $0.69 per pound.
- Organic Fuji apples dropped from $3.49 to $1.99 per pound.
- Responsibly farmed salmon fillets dropped from $14.99 to $9.99 per pound.
- Ground beef dropped from $6.99 to $4.99 per pound.
- A whole rotisserie chicken is now $9.99 compared to $13.99.
According to Jeff Wilke, CEO of Amazon Worldwide Consumer, the price cuts are just the beginning. He hinted at the creation of a customer rewards program for Amazon Prime members at Whole Foods that will “continuously lower prices,” reports CNBC.
Additionally, there has been talk of installing Amazon lockers at Whole Foods so that customers can order items ahead of time that the grocer wouldn’t typically carry (paper towels in bulk or Oreos, for example) and pick them up in tandem with their grocery run. The one-stop-shop model that Whole Foods has never been able to offer is perhaps the toughest hurdle Amazon will face, notes Bloomberg.
Amazon’s acquisition is certainly a first-of-its-kind endeavor, so much remains to be seen. But with the immediate price cuts, investors acted favorably to the news, as Amazon shares rose 0.08 percent while other grocery chains like Sprouts Farmers Market, Walmart and Target saw their shares decrease anywhere from 1 to 10 percent.
“Goodbye, Whole Foods as we know it,” Karen Short, an analyst at Barclays Capital Inc., told Bloomberg. “The conventional supermarket has not evolved much in decades. But Amazon will likely drive drastically different shopping behavior in grocery. The survival of the fittest has begun.”
It remains to be seen how the price cuts affect the quality of Whole Foods’ products and how exactly it will impact the company’ s suppliers, but there’s no doubt more information will be available as Amazon continues to slash prices over the coming months.
What Do YOU Think?
If you weren’t a regular Whole Foods shopper before, will you start shopping there more often following these price cuts? Or will the convenience factor of Costco, Kroger or Walmart continue to win you over? Tell us in the comments!