Whole Foods slashes prices on some produce; also selling Amazon's Echo

Tuesday, 29 Aug, 2017

The items marked down were priced on orange signs that read "Whole Foods + Amazon." the new signs listed the old price, the updated price and a note saying "More to come".

Amazon's announcement that it plans to close the deal Monday comes a day after Whole Foods shareholders approved the deal and the Federal Trade Commission said it would not block the deal.

Amazon's website also reflects the discounts on the devices, along with a discount for the Amazon Tap.

Price cuts varied slightly from city to city. The six largest food retailers, which had already taken a hit after the Whole Foods acquisition was announced in June, lost roughly $12 billion in value after Thursday's announcement about the company's intention to lower prices.

"Starting Monday, Whole Foods Market will offer lower prices on a selection of best-selling staples across its stores, with much more to come", a press release issued by Amazon on August 24 stated. Unlike the Whole Foods price slashing however, this is now USA -only.

On average, she said, supermarkets only squeeze about $1 of profit out of every $100 in revenue. But soon, shoppers at all stores will be able to tap Amazon's $99-a-year Prime program to get discounts at stores.

Comedian John Oliver, host of HBO's "Last Week Tonight", ridiculed Whole Food's pricing in a memorable 2015 sketch.

The bananas were 89-cents a pound last week.

Today's weather for August 24, 2017: Sunny skies, seasonal temperatures expected
Thunderstorms are likely for the Peninsula Wednesday , and the high will be near 90, according to the National Weather Service . SUNDAY NIGHT: Partly cloudy skies and mild temperatures will develop, with a low temperature of 60 degrees.

That is bad for consumers because it means that Whole Foods may come to dominate the grocery world not by offering better products for the best prices, as you'd find in a well-functioning market, but because of the promotional advantage that comes from its tie-up with Amazon.

"I usually buy my staples like toilet paper and paper towels at Target and Safeway", Oshiro said.

That's good news for Whole Foods critics, who have long bemoaned the grocery store's high prices. The bank's price target of $1,150 is roughly 21% above where Amazon shares were trading mid-morning in NY.

Customers can have products shipped from Amazon.com to a Whole Foods store for pick up or send returns back to Amazon during a trip to a store. Meanwhile, Amazon's distribution centers can also function as Whole Foods distribution centers.

Amazon said those changes were just the beginning, but didn't give details on what more is coming.

But will the move make them more competitive and are the price drops worth it?

Amazon isn't the only online retailer reaching into grocery stores.

By convincing more Prime members to go to the store, Whole Foods is looking to wipe away the "Whole Paycheck" label that the grocer has suffered from in recent years, and to be more inviting to shoppers beyond the upper middle class-to-upper class clientele the grocer already attracts.