Amazon moves fast to cut Whole Foods prices

Patrice Gainsbourg
Agosto 25, 2017

So, on top of offering free, two-day shipping on Amazon.com purchases; unlimited access to Prime Video, Prime Music, and Prime Reading; unlimited photo storage via Prime Photos; and early access to Amazon's Lightning Deals, a $99 yearly Prime membership will soon get you special discounts at Whole Foods. The release also emphasizes that the Whole Foods commitment to using local, natural, and organic farmers and products whenever possible will stay in place. Amazon reeled off a long list of other plans to combine its leading e-commerce and delivery assets with the physical locations of Whole Foods stores.

Google is also looking to expand its activities in online shopping, grouped together under its Google Home brand. That will start with items such as chicken, eggs, avocados and organic farmed salmon. Whole Foods remains niche, and its general proposition will continue to be more elevated than most grocers.

Whether Amazon will succeed in the fiercely competitive grocery segment is unclear, but customers are going to benefit from the attempt, said Charlie O'Shea, lead retail analyst at Moody's Investors Service.

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Amazon plans to slash prices immediately. Amazon specifically said "organic tilapia" is among the items that will be marked down on Monday. Walmart, which has the largest share of the US grocery market, is expanding its grocery delivery service with ride-hailing service Uber and announced Wednesday that it will join forces with Google to let shoppers order goods by voice on Google devices. "Its shareholders are agnostic about profit, and seem more interested revenue and market share". We saw some of the disruption reflected in the markets yesterday - Kroger's shares fell more than 8 percent after the announcement, while Walmart's dipped 2 percent. The Kroger Co. dropped almost 8 percent, and Supervalu Inc. fell more than 6 percent. The two companies will invent in additional areas over time, including in merchandising and logistics, to enable lower prices for Whole Foods Market customers. It's a tricky balance that Amazon itself seemed to acknowledge in its statement.

Additionally, you'll now be able to buy Whole Foods groceries and products on Amazon, and likewise, pick up your Amazon packages at Amazon lockers at your local Whole Foods.

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