Tuesday, August 29, 2017

Amazon slashes prices at Whole Foods on first day of merger, more changes to come

Media reports around the country reported yesterday that on the day Whole Foods merged with Amazon, prices were slashed on several items at stores around the country. Orange signs throughout the stores with Whole Foods and Amazon logos promised "more to come..."

Price reductions - some as high as 43% - were found on items like tomatoes, organic Fuji apples, avocados, bananas, Atlantic salmon, tilapia, and grass-fed ground beef. Amazon Echo and Echo Dot devices were on sale at a New York City store for $99, down from $179.

Conventional grocery stores have historically enjoyed a significant price advantage over Whole Foods, due in part to advantages in scale, logistics and category management, all of which are issues Amazon plans to help Whole Foods address.

Last week Amazon said it would embark on a plan to have Amazon Prime take over the Whole Foods loyalty program and eventually provide "special savings and in-store benefits" for Prime shoppers. The company also plans to install lockers at select Whole Foods stores to allow for delivery of online orders.

And yesterday, many of Whole Foods' private label products - including 365 Everyday Value, Whole Paws and Whole Catch - were available for online ordering and delivery through the Amazon's various channels.

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