As of today, Amazon.com, Inc. (NASDAQ: AMZN) officially owns Whole Foods Market, Inc. (NASDAQ: WFM), and its first objective was cutting prices down for some products drastically as well as displaying Amazon Echo for sale in some locations.
Amazon came to an agreement to buy Whole Foods back in June for $13.7 billion and Amazon said that it would change the experience in-store and even online grocery shopping. The acquisition of Whole Foods was also to compete against other major retailers such as Wal-Mart and Costco.
Last week, Amazon said that its first initiative with Whole Foods would be to mark down prices for some of the products and its promises have come true to consumers. Many products have been marked down heavily. Products like Fuji apples have been marked down 43 percent per pound, bananas down by 38 percent per pound, and even increasing prices of avocados were marked down by 29 percent.
“Price was the largest barrier to Whole Foods’ customers,” said Mark Baum, a senior vice president at the Food Marketing Institute, an industry group. “Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their pricing strategies, and maybe find some funding sources to build a war chest.”
Among the price decrease, Amazon will also offer special discounts and services to Amazon Prime members, previously stated by Jeff Wilke, CEO of Amazon Worldwide Consumer.
Many consumers are excited and thrilled about the new price cuts, but it’s nothing new for Amazon as the company is known to keep its prices low.