Baby Kale, Fuji Apples Get Price Cuts At New Amazon-Whole Foods
29 Августа 2017, 12:56 | Lionel James
FTC Clears Purchase by Amazon of Whole Foods Market
The reason, which the FTC ignored in providing its imprimatur, is that Amazon gives Whole Foods access to an online marketing platform that no other grocery company, even a behemoth like Walmart, can hope to reproduce. Other price drops include organic rotisserie chicken ($13.99 to $9.99); Whole Trade bananas (.79 cents per pound to.49 cents per pound); and tilapia ($11.99 per pound to $7.99 per pounds). Deeper price cuts on Monday appeared focused on organic goods that attract a narrower band of shoppers.
At Whole Foods, it's Day One - of Amazon ownership.
As a down payment on that vision, Whole Foods Market will offer lower prices starting Monday on a selection of best-selling grocery staples across its stores, with more to come. Before the deal, the chain was under intense pressure from shareholders to improve its financial results and figure out how to stop customers from going to lower-priced supermarkets to buy natural foods.
Amazon's acquisition of the upscale grocery store closed today.
KRON4's Lydia pantazes is live at Whole Foods in Walnut Creek.
While the new price cuts aren't about to lose Whole Foods its "Whole Paycheck" moniker anytime soon, they make the cost of shopping there a bit - and only a very little bit - less prohibitive. If this happens, Whole Foods would be nothing else than just another common supermarket around the corner.
With every new Whole Foods customer, Amazon will expand its core business, which is based around the Amazon Prime membership.
At a Whole Foods in Brooklyn, 2 pounds of Atlantic salmon fillets were about $2 cheaper at $19.98 and a 1-pound bag of brown rice was selling for 20 cents less at $2.49, according to labels Amazon and Whole Foods affixed to products on Monday to advertise the shift.
This $13.7B transaction, Amazon's largest ever, marks its aggressive foray into the ~$700B groceries USA market, one of the segments least penetrated online, and where we believe Amazon brings several unfair competitive advantages, that should drive market share gains and better profitability.
Walmart, the largest retailer in the world, has invested billions in lowering its prices of all its products over the past year or more, and revamped its produce sections at US locations, improving the sight lines, adding additional fresh fruits and creating its own sweeter cantaloupe. "They probably don't want to do anything to jeopardize the quality or brand value of Whole Foods".
In its press releaseAmazon revealed that Amazon Lockers will be available in select Whole Foods stores. But this isn't likely, Mr. Shreedhar wrote in a June research note, as "the Canadian food retail market is substantially consolidated ..." Whole Foods' gross profit margins have declined by roughly 250 basis points since the second quarter of 2013, to 34 percent last quarter.
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