- Amazon Cuts Whole Foods Prices by 43%
Amazon.com Inc., the new owner of Whole Foods Market, cuts prices by 43 percent on Monday.
Since the tech giant paid $13.7 billion for Whole Food it has embarked on a move to change the $800 billion supermarket industry.
Experts believed the partnership between Amazon and the upscale grocery promises to upend the way customers shop for groceries. Cutting prices at the chain with such an entrenched reputation for high cost that its nickname is Whole Paycheck is an indication that Amazon is serious about taking on competitors such as Wal-Mart Stores Inc., Kroger Co. and Costco Wholesale Corp.
“Price was the largest barrier to Whole Foods’ customers,” said Mark Baum, a senior vice president at the Food Marketing Institute, an industry group. “Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their pricing strategies, and maybe find some funding sources to build a war chest.”
At the store on East 57th Street in Manhattan, organic fuji apples were marked down to $1.99 a pound from $3.49 a pound; organic avocados went to $1.99 each from $2.79; organic rotisserie chicken fell to $9.99 each from $13.99, and the price of some bananas was slashed to 49 cents per pound from 79 cents. The marked-down items had orange signs reading “Whole Foods + Amazon.” The signs listed the old price, the new price and “More to come.”
Discounts were comparable at other Whole Foods stores in San Francisco and Seattle. Amazon declined to comment.
In the Pacific Heights neighborhood of San Francisco, Catherine Oshiro, a 33-year-old product designer, said lower prices may make her change her shopping routine.
“I usually buy my staples like toilet paper and paper towels at Target and Safeway,” Oshiro said. “If I see the lower prices at Whole Foods, I would start buying those basics here.”
Katie Bennett, 24, was one of many customers who said she hoped Amazon would offer delivery of Whole Foods items. She picked out a rotisserie-cooked half chicken for lunch at the New York store.
“Last time I came in, I was thinking about getting the rotisserie chicken, but it was too expensive,” she said.
