Amazon Cuts Prices at Whole Foods By More Than 40%

Tammy Harvey
August 29, 2017

Amazon has already announced they will be lowering prices on a range of products at whole foods - but prime members have even more to look forward to.

Amazon Prime will become the online points-collecting system for customers and users will also be able to do their grocery shop online via Amazon, finding Whole Foods products among the millions of miscellaneous goods it sells online. At a Philadelphia Trader Joe's, a dozen extra-large organic eggs were selling for $3.69 on Monday, 30-cents lower than large organic eggs at a Whole Foods store less than a mile away.

Traditionally, Whole Foods (nicknamed "Whole Paycheck" by some) has been known for their high prices and boutique selections.

Don't expect bargains galore - at least, not yet - as Amazon takes over Whole Foods Market, but price cuts starting Monday on some key items will certainly make for a nice start.

While it's not yet been made clear exactly how much prices will drop, health fanatics will see a reduction in their favorite grocery staples such as kale, salmon, tilapia, baby lettuce and rotisserie chicken.

On day one, however, Monday, Aug. 28, Whole Foods will begin to deliver on Amazon's vision for the brand. There are an estimated 85 million Prime members in the USA, a huge and mostly higher-income group that could help build up Whole Foods' sales. "It's ultimately a nice land grab", said Bill Bishop of retail consultancy Brick Meets Click, and a way to get customers "thinking about buying healthy food from Amazon". It was the first Whole Foods store in New York outside the greater New York City area, though there are plans to open a Buffalo branch. And Amazon Lockers will soon be placed in select Whole Foods stores, so customers can pick up e-commerce orders or send back returns during a grocery run.

The organic supermarket is located downtown inside the elegant Hahne mixed-use building on Broad Street, home to several businesses and offices, including a Petco and Express Newark university-community collaboratory, along with 160 market-rate and affordable apartments.

These lower prices could help Amazon build up excitement for its new acquisition in the short term, but it will likely have to keep working on pricing if it hopes to turn around Whole Foods' flagging sales.

John Mackey will remain chief executive of Whole Foods and the company will operate as a subsidiary and continue to be headquartered in Austin, Texas, the companies said on Thursday.

The same process was going on at other Whole Foods stores.

The list is heavy on organic produce and proteins, Bishop noted, as if to underscore to the uninitiated what Whole Foods is all about - and to show where there's profit margin-cutting wiggle room.

Whole Foods already has a reputation for being the best.

Walmart, which has been ramping up its online operation, has added more fresh-cut fruit and is rolling out curbside pickup.

Other reports by Ligue1talk

Discuss This Article