February 24, 2018

What's Different at Whole Foods Starting Now?

29 August 2017, 12:56 | Frank Carlson

The Whole Foods Market in Midtown New York is seen

The Whole Foods Market in Midtown New York is seen

When the integration is done, Prime members will receive special savings offers and other benefits. The apples were $6.99 for the pink ladies in South Park, but here at the Waverly Whole Foods on Providence apples were $1.99 a pound.

Yet the idea that the upscale natural-foods-oriented chain with an outsized reputation for hefty price tags - remember its derisive moniker: "Whole Paycheck" - is charging less has consumers and the grocery industry considering the impact this price-trimming will have on pocketbooks, shopping patterns and competitors.

The companies signaled last week that they would selectively cut Whole Foods prices starting on Monday, and promised more discounts in the future.

"The price drop makes me want to shop here", Allaman said.

Workers gathered in big groups and moved around the Whole Foods store in Seattle's Roosevelt neighborhood Sunday evening, assessing items across different aisles.

Among other Whole Foods items getting discounts Monday: avocados, tilapia, baby kale, apples and rotisserie chicken - all organic, according to an Amazon press release. "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".

Inc. doesn't need to make money from Whole Foods yet.

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Amazon isn't wasting any time cutting prices at Whole Foods Market. Amazon is known for withholding metrics that could show how well its operations are doing, and Wall Street will be looking for evidence that Amazon is delivering on its vow to improve Whole Foods' margins over time.

At a store in Chicago, organic avocados and bananas were also marked down and a big sign advertised the voice-activated Amazon Echo device on sale for $99.99 rather than the list price of $179.99. The company on Wednesday received the green light from the Federal Trade Commission that the deal with Whole Foods had passed the smell test and it was free to proceed with merger proceedings.

Whole Foods Market will continue to grow its team and create jobs in local communities as it opens new stores, hires new team members, and expands its support of local farmers and artisans. The growing popularity of organic and nature foods had spawned a wage of cheaper alternatives products sold as stores such as Wal-Mart (WMT), Target (TGT) and Kroger (KR), among other locations.

The acquisition, first announced in June and approved by Whole Foods shareholders Wednesday, will give Amazon a massive physical retail footprint.

Customers are seeing price cuts as high as 43 percent on certain items.

Whole Foods has more than 460 stores in the United States, Canada and the United Kingdom.

Kroger is the No. 1 supermarket chain by revenue of $115.3 billion in 2016, with brands that include Fry's, Ralphs, Smith's, Fred Meyer and Food 4 Less.

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