Three withdrawals after the first week of working together with Amazon and Whole Foods

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28 August online retailer Amazon closed a deal to acquire the Whole Foods supermarket chain for $ 13,7 billion and immediately lowered prices.

Edition Chicago Tribune analyzed the results of the first week of cooperation with Amazon and Whole Foods and made three conclusions from the merger of networks.

Price reduction is an advertising gimmick

Immediately after acquiring Whole Foods, Amazon lowered the prices of certain foods, including avocados, tomatoes, bananas, beef, and eggs.

For example, the cost of a dozen white eggs dropped from $3,39 to $2,99; pound of steak meat - from $18,99 to $13,99; pound of organic bananas - 99 cents to 69 cents.

However, some analysts believe that lower prices are more of a publicity stunt. Research firm Gordon Haskett Research Advisors analyzed the prices of 114 products before and after the change in Whole Foods’s owner and found that the average price reduction was only 1,2%, while prices for 78% of products remained unchanged.

However, experts suggest that Amazon will continue to cut prices at Whole Foods.

Whole Foods' 365 brand products now available on Amazon Fresh

Hundreds of Whole Foods' 365 brand products—from meat and dairy to vitamin supplements—are now available through Amazon Fresh's grocery delivery service.

This feature was not as widely advertised as price cuts, but is very important, about Amazon 50 million people use the Amazon Fresh service.

Selling products from the Whole Foods brand on the Internet is a way to offset the costs of lower prices in stores.

Experts predict that Amazon will soon start delivering fresh fruits, vegetables, meat and seafood from Whole Foods to consumers. At the moment, these products are not available through Amazon Fresh, but many analysts believe that this will be the next step between Amazon and Whole Foods.

Future changes

Whether it’s lowering prices or bringing e-commerce to Whole Foods with an Amazon feed, other grocery stores will have to step up and make changes to be able to compete with Whole Foods.

Analysts suggest that Amazon will use data analytics technology at Whole Foods stores to find out what customers want from this store and adapt its work to their expectations.

This means expanding the range of products, lowering prices, introducing discounts offered through Amazon Prime.

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