A lot of people shop at Whole Foods: Natural and organic produce is becoming more and more popular, after all. But, also, a lot of people don’t shop at Whole Foods: the grocery chain is notorious for its very high prices.
But all of that is changing.
You might be aware that online marketplace giant Amazon recently purchased Whole Foods. It might have seemed a bit of a backwards move—most companies are going from traditional retail into the digital space.
But Amazon’s move makes sense: while you can order groceries online and have it delivered to your home that platform is not really well developed. And rather than open its own chain of stores—starting from scratch—it makes more sense the company to find a successful franchise and buy their way in.
And buying Whole Foods was a smart move; but what’s smarter is how dramatically the company has cut prices, even after only a single day.
“Everybody should be able to eat Whole Foods Market quality,” explains Jeff Wilke, who is the chief executive of Amazon Worldwide Consumer, just last week, following the regulatory approval of the $13.7 billion takeover. “We will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards.”
Some of the most significant markdowns include:
• Atlantic salmon fillets per pound—down 23 percent to $9.99
• Organic rotisserie chicken—down 23 percent to $9.99
• Haas avocados—down 26 percent to $2.00
• Organic Gala or Fuji apples—down 33 percent to $2.99
But these lower prices are only one way that Amazon plans to use the store to expand their reach into the physical marketplace.
For example, Stephen Beck, who owns a New York-based management consulting firm, notes, “All the signs in the store are saying, ‘Look what Amazon’s doing for you.’ This isn’t about groceries anymore. It’s about pulling people into the Amazon ecosystem.”
And on your next visit to Whole Foods you might notice a few changes other than lower prices. For one, you will probably see the Amazon imprint in the form of tables or displays featuring Amazon products like the Echo smart speaker.