Whole Foods Slashes Prices Up To 43%...Those Greedy Bastards!
Ever since Amazon’s recent $13.7 billion acquisition of organic grocery chain Whole Foods, people have been wondering what kind of changes would come about in the stores. One very noticeable change has already happened, and that is a price cutting campaign on certain Whole Foods items such as large brown eggs, salmon, bananas, almonds and only a few others.
It will take a while for prices to drop on all items, but it’s apparent that Amazon wants to shed the “Whole Paycheck” reputation and try to compete with other grocery retailers.
Integration has already begun between Whole Foods and it’s now-parent company. Amazon prime members are offered even further discounts at Whole Foods locations, and shoppers can now find the Echo and Echo Dot devices on display shelves of their local Whole Foods as well.
Now as far as the price-cutting goes, I’m always elated when something like this happens. A company purposely lowering their prices is by far one of the most beneficial things that can happen to consumers, and the company that is doing the price-cutting will reap major benefit in the form of more customers and thus more profit. The only way this gets any better is if a competitor returns fire by lowering their prices also, which is known as a good old-fashioned price war.
It will be interesting to see how other grocery companies behave with regards to their pricing, but as far as share prices go, the market was not very kind to three notable grocery stocks: Kroger, Sprouts, and SuperValu Inc.
The price-cutting shouldn’t come as a shock, as low prices(along with convenience, extraordinary selection, and quick delivery) are one of the key drivers of Amazon’s phenomenal growth over the years. Expect more of this type of behavior along with further integration of the two brands.
Sources:
http://www.chicagotribune.com/business/ct-amazon-whole-foods-prices-20170828-story.html
http://www.10tv.com/article/now-whole-foods-cheaper-milk-farm-fresh-amazon-echo
Healthy food at an affordable price? How dare they!?
Wow!! That's an awesome move by Whole Foods. They are smart people, and that's why they dominate the natural foods market as they do. I am excited to see where this goes for all the consumers who are paying exorbitant prices for natural foods right now.
This is a market share grab, investors are happy to have a loss leader as long as the share price keeps rising. The free market is the most efficient and effective way to distribute resources.
Amazon's model is gaining market share. They can operate at a loss for as long as it takes to destroy all competition. Once they are successful they will raise prices with zero competition. They are supported by deep pockets of the oligarchs.
Agreed 100%
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I heard Whole Foods was cutting prices, but did not realize it was this significant.
Heard about the news, yesterday on Bloomberg Radio. Very good thing for the consumers, as you say!
This makes me happy! I love Whole Foods, but don't shop there. Too expensive to feed all the mouths in our house. Will be a more frequent shopper if/when prices drop.
Whoa up there. This is not necessarily a free market operating here to the consumer's benefit. If stuff is sold too low, lets say below the cost of production, that is called dumping and is deemed as un competitive. I am not saying that is what is going on here. We need to be far more savvy as consumers. Price is not everything. What value are you getting? Is your good deal for today coming at a poorer deal for tomorrow. Free markets are good, yes and so is competition. But we need to really understand what is a free market and what is proper competition. A deep pocketed producer that pricers everyone out of the market is an elimination of competition, not a bearer of it. Though is that what is going on here? I am not so sure, but we need to be aware of it.