Amazon Buys Whole Foods and Reduces Prices Drastically

Now that Amazon has acquired Whole Foods Market for $13.7 billion, they have started by reducing prices first day on the job.

Many staples and everyday food products have been lowered up to 43% in prices, as Amazon wants to make Whole Foods a true competitor against other stores such as Walmart, Stores Inc., Kroger Co., and Costco Wholesale Corp.

“We’re determined to make healthy and organic food affordable for everyone. Everybody should be able to eat Whole Foods Market quality – we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” Jeff Wilke, CEO of Amazon Worldwide Consumer, said in a press release.

Customers are already seeing many reduces prices on items, including fruits that are expensive in most other grocery stores. Organic avocados, for example, went from $2.79 each to $1.99 each (based on a Manhattan Whole Foods location).

Whole trade organic bananas went from $0.99 per pound to $0.69 per pound. However, organic Fuji apples were reduced the most, going from $3.49 per pound to $1.99 per pound, presenting a 43% decrease in price.

“Price was the largest barrier to Whole Foods’ customers,” said Mark Baum, a senior Vice President at the Food Marketing Institute. “Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their pricing strategies, and maybe find some funding sources to build a war chest.”

This is just the beginning for Whole Foods Market and Amazon, as they plan to offer more benefits to customers in the future, at locations both in the US and Canada. John Mackey, who began the Whole Foods journey, will remain CEO at the Whole Foods Market headquarters in Austin, TX.

#wholefoods #amazon #affordableshopping

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