Market Overview

Amazon Slashes Whole Foods Prices

Amazon Slashes Whole Foods Prices, Inc. (NASDAQ: AMZN) will push a third round of price cuts at Whole Foods this week to improve accessibility and expand the grocer’s consumer base, according to a report by the Wall Street Journal.

What Happened 

An average reduction of 20 percent will be applied to more than 500 products Wednesday, including organic mangoes, salami, Pacific cod fillet and ground bison. The broad drop — which largely targets produce and meat — will be one of the largest Amazon has pursued since purchasing Whole Foods in 2017. The lower rates will last through at least the end of 2019, according to WSJ.

New deals for Amazon Prime members are accompanying the price cuts. The number of weekly deals will double and discounts will deepen, WSJ said. 

Why It’s Important

In February, Whole Foods effected price raises on a number of consumer products to account for higher supplier prices. Now, it’s prioritizing competitiveness with major food distributors, particularly as Walmart Inc (NYSE: WMT) and Kroger Co (NYSE: KR) maintain low prices to defend their market shares.

The strategy may aim to address lagging conversion of Prime members to the Whole Foods customer base. Previous attempts to encourage Prime shopping at the grocer have fallen short.

What’s Next

Amazon’s plans in the grocery space extend beyond Whole Foods to include a new line of stores scheduled to open later this year.

Amazon closed up 2 percent Monday and was trading down slightly at $1,813.62 at the time of publication Tuesday. 

Related Links:

Could Whole Foods Become Cheaper Than Traditional Grocery Store Shopping?

Whole Foods Supplier United Natural Food's Q2 Print Leaves Bear Analysts Unmoved

Photo courtesy of Whole Foods. 

Posted-In: Grocery Wall Street Journal Whole FoodsNews Retail Sales Top Stories Media Best of Benzinga


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