Amazon's price-slashing plan for Whole Foods rattles industry
27 Августа 2017, 01:40 | Lionel James
"I'm all for it", Tinsley said, "Amazon to collaborate along with Whole Foods to make the neighborhood a better place".
"Amazon's purchase of Whole Foods will expand its dominance and heighten conflicts of interest", wrote Lina M. Khan, a legal fellow with the Open Markets Program at New America, a consumer watchdog group.
Wednesday's shareholder vote, held at Whole Foods headquarters in Austin, Texas, had been expected to pass. In addition, Amazon has announced that it will offer Amazon Prime as a reward program for Whole Foods customers, which will give them special savings and in-store benefits.
That is roughly in line with the results of a 2016 study by Wedbush Securities, in which analysts calculated at 15 percent the premium shoppers paid at Whole Foods compared to a market basket of comparable groceries at major chains like Wegman's.
As consumers grow more comfortable doing their grocery shopping online, Amazon is hoping that Whole Foods customers will become Amazon Prime customers.
With the new details, Amazon is revealing some of its goals for this acquisition - including gathering customer information from Whole Foods' clientele.
"Starting Monday, Whole Foods Market will offer lower prices on a selection of best-selling staples across its stores, with much more to come", the company said.
But the challenge, some say, will be preserving Whole Foods' high-end image while lowering its prices and making its products widely available. Amazon has more than 60 million Prime members, according to analyst estimates.
"While we are encouraged to see Google continue to enhance its eCommerce/Shopping offering, we believe the attention the announcement received was overblown", Blackledge wrote, noting that only 4% of USA households that buy products online bought groceries via Google Express in July.
"There is significant work and opportunity ahead, and we're thrilled to get started", Wilke said. While they're still keeping the iconic brand name, they're going to make the products more affordable for everyone. The largest share goes to Walmart, with about 14.5 percent, followed by Kroger with 7.2 percent, CNBC reported this summer.
It could also pose a threat to other grocers and retailers.
"The traditional supermarket is becoming a dinosaur", Livingston said. "We're going to see a shift in the way people shop".
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