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Amazon cuts some prices at Whole Foods to draw customers

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Screen Shot 2017 08 24

According to Bloomberg, the marked down items were displayed with orange signs that said "Whole Foods + Amazon", listing the old price and the new price, and the phrase "More to come...".

- A dozen large organic eggs were $3.99, down 7 percent from $4.29 on Friday.

Last week, Amazon said it would cut the prices of some Whole Foods best-sellers and those discounts were on display on Monday.

Amazon began slashing prices nearly immediately, lowering the cost of various items from salmon and ground beef to avocados and organic kale.

Where's the beef? Whole Foods' Local Grass-Fed 85% Lean Ground Beef is down significantly, to $6.99 per pound from $10.99.

With Amazon and Google teaming up with Walmart and Whole Foods, Lee McKnight feels other retailers might need a cyber-partner as well.

With Whole Foods now offering various private label offerings on Amazon.com, AmazonFresh and Prime Pantry, the brands will have a much greater scale and potentially reach a much broader set of consumers.

Amazon started to implement drastic changes within its latest successful acquisition, Whole Foods.

The Echo plays a critical role in Amazon's burgeoning ambitions to popularize and dominate the market for voice-controlled computing.

"I paid $13 for this oatmeal - how can anyone say that's not expensive?"

Whole Foods employees were upbeat about being under the Amazon corporate umbrella at the Park Lane store in Dallas.

The planned price cuts would have been a tough sell to Whole Foods' investors, who had grown used to fat profits from the upscale chain, but are more in line with Amazon's broader strategy of sacrificing short-term profit for long-term market dominance. The company handles 43 percent of all internet purchases in the USA, attracting so much business that its website is actually the country's fifth-most trafficked. The company on Wednesday received the green light from the Federal Trade Commission that the deal with Whole Foods had passed the smell test and it was free to proceed with merger proceedings.

"That's been the biggest boondoggle around Whole Food's neck for years", Lempert said of the supermarket's high-price reputation. We also expect AMZN to continue to roll out additional 365 banner locations in an effort to make WFM's price points more accessible.

In addition to lowered prices in stores, Whole Foods also plans to include Amazon Echo in their brick-and-mortar locations as a way to upsell Amazon Prime services. The acquisition probably has less to do with the grocery business and more to do with eliminating one annoying aspect of online shopping.

The potential windfall Whole Foods can become for Amazon from the standpoint that it can drive higher Prime subscription members is enormous.

On Monday, the supermarket industry will learn just what Day 1 means.

The Echo was discounted from $179.99 to $99.99 at the Gowanus Whole Foods store.

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