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Amazon Moves Quickly To Cut Prices at Whole Foods

27 August 2017, 01:34 | Melanie Burgess

Amazon unveils Prime discounts, Lockers at Whole Foods

Amazon vs Google ecommerce search

United Kingdom supermarket shares have taken a hit after Amazon said it was planning a round of price cuts when it completes its $13.7bn takeover of upmarket grocery chain Whole Foods.

- The grocery business is set to get a big shape-up come Monday as Amazon completes its takeover of Whole Foods.

On the flip side, you'll also be able to buy private label foods like 365, Whole Paws and Whole Catch on Amazon.

Amazon in June announced it would acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion.

Amazon.com (NASDAQ: AMZN) has all of the permissions in order to close on its acquisition of Whole Foods Market (NASDAQ: WFM), which was first announced in May. Co-founder John Mackey will remain as CEO.

But industry experts say the Google-WalMart deal has little chance of getting in the way of Amazon's ambitions.

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Amazon customers would be able to receive packages - and return items bought online - at Whole Foods locations that include its Lockers service, the retailer said, outlining what customers can expect to see.

Whole Foods Market will be opening more opportunities for communities to grow with them.

"This has been a perennial problem for Whole Foods with no good solution". They purchase from Amazon 25 times a year on average, 11 more visits than non-Prime customers. "They will lower prices on consequential items to drive traffic and sales but not do a whole store price reduction which could really damage gross margin and potentially wipe out operating margin".

They announced that they will completely take over the Whole Foods Market on August 28.

Going even further they intend to integrate your Amazon prime membership into the Whole Foods shopping experience.

Starting Monday, there will be lowered prices on a selection of best-selling Whole Foods products like organic responsibly-farmed salmon and tilapia, animal-welfare-rated 85% lean ground beef, Whole Trade bananas, organic avocados, organic baby lettuce and kale, organic Gala and Fuji apples, organic rotisserie chicken, organic brown eggs, 365 Everyday Value organic butter, and more. It could also bring in new consumers who can then be urged to shop for food and other products online. "I doubt they'll be quite that drastic with Whole Foods but I do think they'll incentivize shoppers quite a bit to associate their Prime account with their Whole Foods transaction".



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