Here's how much Amazon lowered Whole Foods prices
- Author: Rita Burton Aug 29, 2017,
Aug 29, 2017, 0:33
According to pricing data collected by Bloomberg from before and after the acquisition, many products around the store had their prices cut by double-digit percentages with some dropping by as much as 43 percent.
Whole Foods Market's healthy and high-quality private label products - including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch - will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now. And Amazon Lockers will soon be placed in select Whole Foods stores, so customers can pick up e-commerce orders or send back returns during a grocery run. They were at $41.98 on Thursday.
Many have wondered how Amazon would integrate its Alexa-powered technology in Whole Foods stores, and selling Echo devices seems like a logical start.
One customer at the Union Square Whole Foods in NYC explained that with school starting up again sales are key.
"Amazon can lower prices without putting any pressure on suppliers", said Bill Bishop, co-founder of Brick Meets Click, a retail consultancy headquartered in Barrington, Ill. The bank's price target of $1,150 is roughly 21% above where Amazon shares were trading mid-morning in NY. Walmart, which has the largest share of the USA grocery market, is expanding its grocery delivery service with ride-hailing service Uber and announced Wednesday that it will join forces with Google to let shoppers order goods by voice on Google devices.
Shares of Target, Supervalu and other companies in the grocery business dropped after price changes became public. The Kroger Co. dropped almost 8 percent.
Amazon's announcement that it plans to close the deal Monday comes a day after Whole Foods shareholders approved the deal and the Federal Trade Commission said it would not block the deal. Amazon increases its purchasing power and negotiating ability, which should allow for lower prices. "It could drive them out of the industry".More news: Sydex.net: Free People Search | Alex Diener, Carmen West, Doug G. Ware
"It's something I worry about", said Lauren Beitelspacher, an assistant professor of marketing at Babson College. If the prices stay consistently lower, she said, "I'll definitely shop more here".
The price of organic Hass avocados was slashed by 33 percent to $1.99 each, down from $2.99, in the Whole Foods in downtown Los Angeles.
You'd be wrong, of course, because since the early 1980s antitrust regulators at the FTC and Justice Department have taken a narrow approach to merger enforcement, generally treating only large deals between direct competitors as a potential threat to competition.
Shoppers at Whole Foods Market at at 21st Street and Pennsylvania Avenue had mixed reactions to Amazon gobbling it up.
P&G's product line was so large, extending from Ivory soap to Duncan Hines cake mix, that it was already the nation's largest national TV advertiser.
Whole Foods Market says it will now offer lower prices on a selection of popular grocery items across its stores, and the company promises more to come.