Amazon Whole Foods Deal Brings Lower Prices at Grocery Chain
29 August, 2017, 00:53 | Author: Valerie Burke
In the future, after certain technical integration work is complete, Amazon Prime will become Whole Foods Market's customer rewards program, providing Prime members with special savings and other in-store benefits.
The price of organic avocados was lowered from $2.50 each to $1.49 each, bananas (pictured as melons) dropped from 99 cents per pound to 69 cents per pound, and the price of tomatoes on the vine were lowered from $3.49 per pound to $1.99.
Slashing prices at the organic grocery chain, which has such a deep-rooted reputation for high prices that it has been given the nickname of Whole Paycheck, is a signal that the e-commerce giant is very serious about grappling with its competitors such as Kroger Co., Costco Wholesale and the country's largest grocery chain Walmart Stores. On Monday, the tab was $75.75, a 23 percent reductions. Also, Amazon Lockers will be placed in some Whole Foods stores.
As noted by several people on Twitter, Whole Foods is now selling slightly discountedAmazon Echos and Echo Dots.
Adding Whole Foods benefits should help Amazon attract more shoppers to its successful Prime scheme, which features two-day shipping for eligible purchases and unlimited streaming of movies and TV shows.
"We all have choices when we go shopping and if your house is like mine, we stretch every dollar to make it count", McGinty said on his way to the store. Whole Foods, meanwhile, had been under intense shareholder pressure to improve results and retain customers who have more choices about where to get natural foods. Customers can have products shipped from Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.
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The new Whole Foods prices, in some cases, were lower than those at a nearby Ralphs grocery store. If this happens, Whole Foods would be nothing else than just another common supermarket around the corner.
Whole Foods has rolled out a loyalty program at its smaller, lower-priced 365 by Whole Foods chain, which offers members 10% off more than 100 items in the stores. Whole Foods' gross profit margins have declined by roughly 250 basis points since the second quarter of 2013, to 34 percent last quarter.
There were also non-Whole Foods employees with the group wearing "visitor" stickers - perhaps Amazon employees helping manage the transition.
Founded in 1978, Whole Foods Market is the first national "Certified Organic" grocer, bringing in approximately $16 billion in sales a year ago. "They probably don't want to do anything to jeopardize the quality or brand value of Whole Foods". Some of the steepest price cuts were on meat: Fresh Atlantic salmon dropped by a third from$15 to $10 a pound, and Hass avocados by almost half.
Austin, Texas-based Whole Foods has more than 430 stores in the U.S., Canada and the United Kingdom, including Alabama locations in Huntsville, Mountain Brook, Mobile and Montgomery.
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