Economy

Amazon Plans to Reduces Whole Foods Grocery Prices

Amazon Plans to Reduces Whole Foods Grocery Prices

While Whole Foods accounts for less than 3 percent of US grocery and supermarket sales, the purchase gives Amazon a foothold in a fragile industry that can ill-afford more price cutting. Looking ahead, the Seattle company hopes to give Amazon Prime members special savings and other in-store benefits.

Industry watchers think this is a good start for Amazon in the food business.

The union, which represents grocery workers, said the deal was "a threat to Whole Foods workers and their families".

The $14-billion purchase is expected to close Monday.

The planned price cuts would have been a tough sell to Whole Foods' investors, who had grown used to fat profits from the upscale chain, but are more in line with Amazon's broader strategy of sacrificing short-term profit for long-term market dominance.

The S&P 500 Food Retail index closed down nearly 5 percent as more than $10 billion was wiped off the market value of big food sellers.

An Amazon Fresh truck in front of the famous Pike Place Market late in the
An Amazon Fresh truck in front of the famous Pike Place Market late in the

Whole Foods will continue to expand in terms of staff and locations and will maintain operations under the Whole Foods Market brand. Amazon will pay $42 per Whole Foods share, an 18 percent premium from its price the day before the tie-up was announced June 16.

Amazon's strategy with Whole Foods is expected to change the competition among US groceries.

Amy Klobuchar (D-MN) says she is "concerned" over the speed with which Amazon completed its $13.7bn acquisition of the kombucha-slinging organic money sink.

Starting Monday, there will be lowered prices on a selection of best-selling Whole Foods products like organic responsibly-farmed salmon and tilapia, animal-welfare-rated 85% lean ground beef, Whole Trade bananas, organic avocados, organic baby lettuce and kale, organic Gala and Fuji apples, organic rotisserie chicken, organic brown eggs, 365 Everyday Value organic butter, and more. In the future, after "certain technical integration work is complete", Amazon Prime will become Whole Foods' customer rewards program. "And so does Whole Foods need to be the cheapest or least expensive retailer out there? No". The company already has its own delivery serviced called AmazonFresh and has been experimenting with a "click and collect" system in which customers buy their groceries online and then pick them up in person.

But the challenge, some say, will be preserving Whole Foods' high-end image while lowering its prices and making its products widely available.

More news: Hundreds of thousands of Saleh supporters rally in Yemen


  • Donald Trump Retweets Bizarre Obama Eclipse Meme. The Internet Is Confused

    Donald Trump Retweets Bizarre Obama Eclipse Meme. The Internet Is Confused

    The Sun is what gives us life and energy!' That retweet was also deleted after Mr Holden celebrated his brief brush with fame. In July, Trump tweeted a video of himself beating up a man with the CNN logo superimposed on his head.
    Facebook looks to New Yorkers for its streaming aspirations

    Facebook looks to New Yorkers for its streaming aspirations

    On Facebook alone, Humans of NY has more than 18 million followers. My goal was not to make a television show based on Humans of NY . I'm often deeply moved by the people I meet.
    Pochettino responds to Aurier's Spurs link

    Pochettino responds to Aurier's Spurs link

    Danny Rose, Erik Lamela, and Georges N'Koudou are ruled out for the home side but right-back Kieran Trippier is expected to start. Sanchez, comparatively, moved to Ajax from Colombian club side Atletico Nacional last summer.
  • Iraqi military: Most of Tal Afar seized from ISIS

    Iraqi military: Most of Tal Afar seized from ISIS

    Those remaining were threatened with death by the militants, according to aid organizations and residents who managed to leave. The Tal Afar operation began Sunday , and is aimed at driving IS from one of the last major pockets it controls in Iraq.
    Chow Yun-Fat spotted clearing uprooted tree from road after Typhoon Hato

    Chow Yun-Fat spotted clearing uprooted tree from road after Typhoon Hato

    Streets were lined with trash and shattered glass and residents holding plastic buckets queued for water from fire hydrants. There were reports of 34 people injured in Hong Kong, which had not been hit by a signal 10 typhoon for five years.
    Jay Thomas Dead at 69 After Battling Cancer

    Jay Thomas Dead at 69 After Battling Cancer

    Thomas most recently played Marty Grossman, the operator of a sleazy website , on the Showtime drama "Ray Donovan ". He later landed a recurring role as the hockey-playing husband of Rhea Perlman's character on "Cheers".
  • SpaceX launches FORMOSAT-5 satellite

    SpaceX launches FORMOSAT-5 satellite

    The satellite, a successor to Formosat-2, is created to send down high-resolution Earth imagery for five years. An Earth-observation satellite for Taiwan's National Space Organization has been launched from California.
    Apple to Embark on Electric Car Autonomous Systems

    Apple to Embark on Electric Car Autonomous Systems

    Apple will no longer work on building a fully contained self-driving vehicle , but will instead work on the underlying technology. In the meantime, Apple is focusing on a self-driving campus shuttle called PAIL - short for " Palo Alto to Infinite Loop".
    How can GCSEs get harder and results stay the same?

    How can GCSEs get harder and results stay the same?

    Headteacher Sharon Marshall said the majority of students had gained what they needed to continue on their chosen paths. Tallulah, who had revised non-stop for the past three months, achieved a clean sweep of 11A*s.
  • Injured Wallabies lock Coleman to miss Bledisloe Cup test

    Cheika said on Thursday he had been impressed by Rodda's training output and hinted he was closing in on a Wallabies nod. They're risky , they're hungry, they've certainly got a point to prove".
    White nationalist Chris Cantwell turns himself in to authorities

    White nationalist Chris Cantwell turns himself in to authorities

    Signer said the Charlottesville City Council will formally vote to remove the Jackson monument at the next meeting in two weeks. The city says officials will provide an update on "recovery efforts" and offer opportunities for public comment.
    US Sanctions Target Chinese, Russians Over North Korea

    US Sanctions Target Chinese, Russians Over North Korea

    The Trump administration is still hoping China will pressure Pyongyang. "However, there are missing elements". The penalties are meant to complement new U.N.