The targeted products include select bananas, organic Gala and Fuji apples, organic rotisserie chicken, responsibly farmed salmon, organic brown eggs, ground beef, almond butter and 365 Everyday Value organic butter. So if you used to sadly walk by the grocery chain with a hankering for some organic produce, mumbling "more like Whole Paycheck", things are looking up. Amazon said the two companies will invent in additional areas over time, including merchandising and logistics to enable lower prices for Whole Foods Market customers. While likely boosting Prime's membership rolls, it could also induce a broader range of customers to stop more often at Whole Foods - a company that has a reputation for being too pricey for many shoppers.
The benefits of Amazon's backing stand to make shopping at Whole Foods more affordable and convenient, but consumers can also anticipate speedy delivery of groceries to be roped into the deal.
The day after the Federal Trade Commission (FTC) stated that there would be no further investigation into Amazon's purchase of Whole Foods Market and if it created unfair industry competition, Amazon dropped the announcement of the price drops. 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.
What does this shift mean for the supermarket industry as a whole?
Will you be one of the shoppers benefiting from Amazon's purchase of Whole Foods?
Will retailer's stock continue to be affected as the Whole Foods and Amazon grocery announcements continue to roll in?
The grocery business has been under increasing pressure for quite awhile and there has been something of a mini-price war for such staples as eggs and milk. Another change would make Prime the loyalty rewards program for Whole Foods customers.
Amazon's competitors are already taking steps to react. The e-commerce giant has little interest in premium margins. Walmart has more than 4,600 stores and a year ago started making a multibillion-dollar investment in lowering grocery prices. Amazon has more than 60 million Prime members, according to analyst estimates.
The Whole Foods deal is part of Amazon's growing grocery retail footprint, as the company also recently opened two AmazonFresh Pickup stores in Seattle and is testing the first checkout-free Amazon Go convenience store.
"There was a lot of speculation that Whole Foods might be left as more of an independent entity, at least in the beginning phases of the acquisition", she said.