Agosto 13, 2020

Things That Are About to Get Cheaper at Whole Foods

27 Agosto 2017, 01:29 | Azura Castelo

Things That Are About to Get Cheaper at Whole Foods

Amazon vs Google ecommerce

APREX/ShutterstockOne of Amazon's core beliefs is that grocery shopping is an online business, yet the retail giant just spent $13.7 billion to procure 460 brick-and-mortar Whole Foods stores and lower prices on dozens items.

The April announcement was born of necessity.

Those now effectively function as warehouses for the Amazon Fresh delivery service, says Phil Lempert, a grocery industry analyst.

Amazon is making a big bet on physical stores and the business of food.

Until now, he says.

More price reductions will come in the future, Amazon said, as investments in merchandising and logistics make Whole Foods' operations more productive and efficient. If you're not already counted among them, it might be time to sign up for a free 30-day trial because Amazon Prime members are going to get exclusive discounts at Whole Foods.

In particular, the Minnesota senator is anxious about the millions of new customer records and shopping details it would gain from owning Whole Foods.

"We can't wait to start showing customers what's possible when Whole Foods Market and Amazon innovate together".

"Rivals should be under no illusion that they are now dealing with a competitor that is not afraid to damage profits and margins if it creates long-term gains", Saunders said in an analyst note. They didn't have to wait long.

Amazon also said it would start selling Whole Foods brand products on its website, a move that hit shares in packaged food sellers such as Kellogg (Hamburg: 944624.HM - news). The program is still being tested in the main Whole Foods chain. For its part, Amazon recently announced a discounted Prime membership for those on government assistance, which should make these products more accessible. "They've got to figure out how to toe that line". Whole Foods Market employs approximately 87,000 team members and has been ranked for 20 consecutive years as one of the "100 Best Companies to Work For" in America by Fortune magazine. Co-founder John Mackey will remain as CEO.

It could also pose a threat to other grocers and retailers. "But we also can't have too big of a gap, or people will feel like we're trying to take advantage of them".

He said despite Amazon's track record, the venture is a bit of a gamble.

Whole Foods has rolled out a loyalty program at its smaller, lower-priced 365 by Whole Foods chain, which offers members 10 percent off more than 100 items in the stores.

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