The opening round of cuts applies to what Wilke described as best-selling grocery staples, including Whole Trade organic bananas, responsibly-farmed salmon, organic large brown eggs, animal-welfare-rated 85 per cent lean ground beef, and more.
Modeled with its private-label 365 Everyday Value brand in mind, the grocery chain launched a store concept a year ago that is more affordable than the pricey Whole Foods model and aims to bring in more millennial shoppers.
Considering lower prices in flagship Whole Foods is going to be a reality, we aren't sure yet what this will mean for the recently-opened 365 Market, or even Amazon's new line of generic goods, Wickedly Prime.
The era of Whole Paycheck, the derisive nickname for Whole Foods, may be drawing to a close.
On Wednesday, the world's biggest retailer, Wal-Mart Stores and technology giant Google announced they were teaming up in a grocery delivery venture that was widely seen as a response to Amazon. Yet Amazon's announcement of immediate price reductions on groceries underscores how the company has managed to say on the right side of regulators.
An executive from Amazon known as Jeff Wilke said that the company is on a mission of making sure that people access organic and healthy foods. The release also emphasizes that the Whole Foods commitment to using local, natural, and organic farmers and products whenever possible will stay in place. The $13.7 billion deal is set to go through August 28, and if all goes as planned, Whole Foods shoppers will see some prices drop immediately, according to the Washington Post. By then, Amazon Prime could become a one-stop shop for all consumer needs, from groceries and clothes and home appliances to on-demand entertainment and concert tickets. Whole Foods, which started in Austin, Texas in 1980, operates 468 stores in North America and the United Kingdom.
In its press release about Amazon's plans to lower Whole Foods' prices, the company was sure to inform investors that these first price cuts are "just the beginning". "Everybody should be able to eat Whole Foods Market quality".
Meanwhile, select Whole Foods Market stores will offer Amazon Lockers.
John Mackey, co-founder and c.e.o. of Whole Foods, is to remain as c.e.o. following the takeover. Amazon Prime has shown to be successful financially for the Seattle based company and has created a customer base that is very loyal. SuperValu, with a network of 2,000 stores across the country, was down more than 6 percent, while Costco dipped about 5 percent.