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Amazon Will Cut Whole Foods' Prices, Immediately
25 August 2017, 01:51 | Melanie Burgess
Amazon will lower Whole Foods prices right away and Prime members will get special discounts
"Amazon and Whole Foods Market plan to offer more in-store benefits and lower prices for customers over time as the two companies integrate logistics and point-of-sale and merchandising systems".
Whole Foods'more than 400 locations in the U.S., Canada and the United Kingdom give the e-commerce giant a vast physical network to sell products to more customers. Organizations like the UFCW, Food & Water Watch and others have expressed concerns that Amazon's drive for efficiency and low prices would put smaller competitors out of business, jettison workers and create a culture that values large suppliers over the small onesWhole Foods has sold for so long.
You'll be able to buy Whole Foods' private label products on Amazon Prime.
"There is significant work and opportunity ahead, and we're thrilled to get started", he said.
For example, bananas can cost 99 cents a pound at Whole Foods versus 49 cents at Wal-Mart.
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Whole Foods Market, the natural-foods chain often mocked as Whole Paycheck due to its high prices, may soon need a new nickname.
Starting Monday, Whole Foods will lower prices on some of its best-selling staples across its 460 stores, with Amazon promising more price cuts to come.
Amazon stock traded down 0.2% to $955.77 at Thursday's open, while Whole Foods shares were up 0.7% to $41.96. Amazon also said that it will start selling Whole Foods brand products on its website.
Amazon also detailed some of its plans to integrate brick-and-mortar customers and online users: Certain Whole Foods stores will also have lockers where shoppers can pick up or return goods purchased on Amazon. The goal is to "make organic food more affordable for everyone". John Mackey will stay on as CEO. So, it may be hoping to goose interest at Whole Foods early on to build up a base of loyal Prime members. For more information, visit www.amazon.com/about and follow @AmazonNews. A Morgan Stanley survey earlier this month found that Whole Foods prices were down slightly from past year, but that they still averaged roughly 15% higher than regional supermarkets.
And there was more bad press when a photograph of a $6 bottle of "asparagus water" at a California store went viral. It's estimated that half of American households have an Amazon Prime membership.
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