Amazon’s plans to cut Whole Foods prices shake up retailer market

Amazon’s plans to cut Whole Foods prices shake up retailer market

Amazon has announced plans to lower prices on a selection of Whole Foods ‘best-selling grocery staples’, including beef and chicken, as its acquisition of the supermarket chain is poised to close next Monday (28th August).

The online retailer said that beginning Monday, it will cut prices on a range of Whole Foods products, including animal-welfare-rated 85% lean ground beef and organic rotisserie chicken among others, as part of the two companies’ vision of making Whole Foods’ products “affordable for everyone”.

The announcement caused shares of UK supermarkets to slip following the open of trading in London, with Tesco, Marks & Spencer, Sainsbury’s and Morrisons marking declines of 1%, 0.85%, 0.63% and 0.5% respectively.

Amazon and Whole Foods Market technology teams will begin to integrate Amazon Prime into the Whole Foods Market point-of-sale system, and when this is complete, Amazon Prime members will receive special savings and in-store benefits.

In addition, Whole Foods will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.

Jeff Wilke, CEO of Amazon Worldwide Consumer, commented: “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 to the highest standards.

“And this is just the beginning – we will make Amazon Prime the customer rewards program at Whole Foods Market and continuously lower prices as we invent together.”

John Mackey, Whole Foods Market co-founder and CEO, added: “By working together with Amazon and integrating in several key areas, we can lower prices and double down on that mission and reach more people with Whole Foods Market’s high-quality, natural and organic food.

“As part of our commitment to quality, we’ll continue to expand our efforts to support and promote local products and suppliers.”

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