Amazon tied a lead weight to other groceries’ stock prices when it announced that on its first day of official ownership of Whole Foods on Aug. 28, it will cut prices.
The company said consumers will see cheaper tilapia and Fuji apples, but it did not give the exact price.
In addition to across-the-board discounts, Amazon Prime members will see special deals.
For longtime shoppers at Whole Foods, the store given the unflattering nickname “Whole Paycheck,” this might seem odd. However, Amazon wants the chain to be more competitive with other groceries.
“The (profit) margins at Whole Foods probably were too high,” said Jeff Roster, vice president of retail strategy at the IHL Group, a Tennessee-based research firm. “’Whole Paycheck’ wasn’t just a meme. It was pretty darn accurate. There’s room to breathe.”
Amazon’s stewardship will affect all parts of Whole Foods, from the food quality to prices to its affinity for local farmers. Read the full analysis of Whole Foods’ changes on our premium subscriber site.