The Amazon effect will be hitting Whole Foods Market on Monday. That is right. There will no longer be the need to mock the organic natural grocer for their extremely high prices anymore.
The takeover of Whole Foods by Amazon will not be finalized until August 28, but the online retail giant has revealed its strategy for cutting prices. This will be a breath of fresh air to green grocery customers.
Whole Foods and Amazon have said that everyone will enjoy the lower prices on items like Whole Trade Bananas, organic large brown eggs, organic baby lettuce and baby kale, organic avocados, responsibly farmed organic tilapia and salmon, and much more. And as a benefit to those who spent $99 on a Amazon Prime account, Whole Foods Market will be incorporated into the program.
In June, Amazon made the announcement that for $13.7 billion dollars, they were purchasing the popular organic grocery chain. This caused the retail industry to feel the shockwaves of the Amazon effect. Now it is just a matter of time to see what effect brick-and-mortar supermarkets will see from the take over of Whole Foods.
The day after the Federal Trade Commission (FTC) stated that there would be no further investigation into Amazon’s purchase of Whole Foods Market and if it created unfair industry competition, Amazon dropped the announcement of the price drops. The deal was also voted in favor of on Wednesday by shareholders of Whole Foods, according to Buzzfeed.
According to Amazon, their technology teams, along with Whole Foods Market’s tech teams are going to begin the integration of Amazon Prime in the market’s point-of-sale system. What that means, is, when the work is done, Prime members who visit Whole Foods in-store will receive even more special savings.
The integration of Amazon Prime into the physical stores is a bid to get existing members into the actual, physical locations, as well as have additional members sign up for the program. Amazon Prime has shown to be successful financially for the Seattle based company and has created a customer base that is very loyal.
Of course, with Amazon Prime in the Whole Foods Market physical locations allows the online giant to track customer data to suggest other purchases. For example, if a Amazon Prime customer goes in to purchase something like organic salmon, they may see ads online later for lemon that would taste really good on that salmon previously bought.
But it is not just for Amazon Prime members. Whole Foods private labels like 365 Everyday Value, will be available for anyone to purchase online through Amazon. Price reductions for specific items have not been made public yet, but currently, for just under $3, customers can by a Hass avocado, organic of course, online at Whole Foods, so the Amazon pricing is expected to come in at a more competitive level.
By Cletus Dillwood
Photo Courtesy Whole Foods