‘ WHOLE PAYCHECK’ WANTS A NEW REP
Starting Monday, Whole Foods will cut prices on produce, meat and groceries, Amazon says
Whole Foods Market, the naturalfoods chain often mocked as Whole Paycheck due to its high prices, may soon need a new nickname.
Amazon, which is acquiring the organic- heavy supermarket chain for $ 13.7 billion, announced that starting Monday, the day that the deal closes, it will cut prices on a range of various staples.
They will include Whole Trade bananas; organic large brown eggs, avocados, baby kale, baby lettuce, and Gala and Fuji apples; “animal- welfare- rated” 85% lean ground beef; organic, “responsibly- farmed” salmon and tilapia; creamy and crunchy almond butter; organic rotisserie chicken; and its generic organic butter.
The Seattle- based Internet giant declined to give examples of the price cuts or indicate how deeply key items will be
discounted but said that other foods will be added to that list soon.
“We’re determined to make healthy and organic food affordable for everyone. Everybody should be able to eat Whole Foods Market quality. We will lower prices without compromising Whole Foods Market’s long- held commitment,” said Jeff Wilke, CEO of Amazon Worldwide Consumer.
The news comes the day after Whole Foods shareholders voted to approve Amazon’s bid. There had been widespread anticipation that Amazon would bring its buying leverage and cost- cutting delivery systems to bear in a way that could knock down Whole Foods’ notoriously high prices.
Whole Foods customers are sure to celebrate — and industry watchers seemed just as smitten.
“Whole Foods has that ‘ Whole Paycheck’ reputation, and they want to be able to work on eliminating that,” supermarket consultant Matthew Casey said of Amazon’s price- cutting motivation.
Selling some key foods for less than the traditional Whole Foods prices will retain fans of the Austin- based organic grocery chain and lure new shoppers.
“Amazon’s been one of the most wonderful things to happen to consumers in this country in a long time,” said Trip Miller, managing partner at Gullane Capital Partners. “We think it’s a wonderful starting point for them in the food business.”
It shows Amazon is out to make changes in the pricing strategy at Whole Foods. The move is likely to boost sales — and profits.
“It’s the volume game Amazon brings to the table for the Whole Foods customer,” Miller said. On certain items, “they might be making less ( profit) margin or no margin” to build foot traffic into stores. “This is a bad thing for Sprouts and Kroger.”