As Amazon begins online grocery orders, steep price cuts are showing at Whole Foods.
Amazon, as promised, has lowered prices on many key items at Whole Foods Market. This coming as Amazon’s first day as the new owner of the grocery chain long-known for its high quality…and high price tags.
Also, in a way to further integrate its new chain of stores with its current operations, banners began flying to cross-promote other Amazon products. At one particular Whole Foods store, a display offered a discount on the Amazon Echo home connectivity system.
For the most part, the initial official day of Amazon’s $13.7-billion acquisition of Whole Foods was fairly low key. The big differences were in prices. Here, for example, are a few items from a midtown Manhattan store Monday:
- Whole Trade bananas — 49 cents per pound , down 38% from 79 cents
- Organic Fuji apples — $1.99 per pound, reduced 43% from $3.49.
- Organic large brown eggs — $3.99 per dozen, a cut of 7% from $4.29.
- “Animal-welfare-rated” 85% lean ground beef — $4.99 pound, down 29% from $6.99.
- Organic rotisserie chicken — $9.99 each, also pared 29% compared to $13.99 before.
Whole Foods has, for quite a while, been labeled as “Whole Paycheck” for its high prices. However, Wall Street has already picked up on the changes that are taking place.
These early price cuts are “the first salvo in what we believe will be a period of heavy promotions throughout the grocery industry”, as competitors attempt to figure out how to keep their current customers loyal while remaining profitable, said Moody’s retail analyst Charlie O’Shea. He predicts larger players, like Walmart, will be able to make it however.