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Amazon Cuts Prices At Whole Foods By Up To 43% On First Day

Published on Aug 28 2017 2:03 PM in Retail tagged: Trending Posts / Amazon / US Retail / Whole Foods

Amazon Cuts Prices At Whole Foods By Up To 43% On First Day

Amazon spent its first day as the owner of a brick-and-mortar grocery chain cutting prices at Whole Foods Market.

At the Whole Foods on 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 items marked down had orange signs reading “Whole Foods + Amazon.” The signs listed the old price, the new price and “More to come...”.

Lori McNichol, a resident of Manhattan’s Upper East Side, said she was doing her regular grocery shopping Monday morning and wasn’t lured by lower prices. Still, she has high hopes for the supermarket’s new owner.

“I thought I could probably get things delivered, which would be exciting,” she said.

Growing Competition

Amazon acquired the upscale supermarket chain for $13.7 billion, sending competitors such as Kroger, Costco and Walmart reeling. Whole Foods earned a reputation for high prices, getting the nickname Whole Paycheck.

The cuts add another front to a price war that’s already raging across the supermarket sector. Retailers from Walmart to European-based discounters look to grab shoppers’ attention. The battle has shaved profit margins and prompted companies to look at new selling strategies, like Walmart’s decision last week to sell its goods on Google’s online marketplace.

Shares of Kroger fell as much as 2% in early trading on Monday.

News by Bloomberg, edited by ESM. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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