Amazon just gave Whole Foods shoppers a good excuse to get Prime
01:19, Aug 26, 2017
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Looking ahead, Amazon hopes to give Prime members special savings and other in-store benefits.
The companies announced they would cut the prices on Monday on a selection of what it described as "best selling staples", a list that included items such as lean ground beef and organic large brown eggs, as well as organic baby kale and both creamy and crunchy almond butter. The company also said certain Whole Foods products will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now. 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. But I, like many others, soon found that escalating prices that entered into the realm of "ridiculous" hardly justified making it my sole source of groceries. And it will turn them into Amazon customers and advance its bid to become the dominant player in all of retail - the so-called everything store. The Whole Foods deal is yet another way for Amazon to attract more members.
Jeff Wilke, chief executive of Amazon Worldwide Consumer, said that the company wants to make sure everyone can afford to eat well. By inventing together in these areas, Amazon believes this will enable even lower prices at Whole Foods.
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. By then, Amazon Prime could become a one-stop shop for all consumer needs, from groceries and clothes and home appliances to on-demand entertainment and concert tickets.
Online retail behemoth, Amazon, is set to close the deal on acquisition of Whole Foods on Monday. Shares of Kroger, which was rumored late a year ago to be considering its own takeover of Whole Foods, fell more than 8 percent. He said: "It's been our mission for 39 years at Whole Foods Market to bring the highest quality food to our customers".
Though Amazon'sofficial acquisition of Whole Foods is notable news, the most interesting information that surfaced in Amazon'spress release about the acquisition was the e-commerce giant's plans to begin cutting prices immediately - a move that has the potential to rapidly accelerate Whole Foods' sales and subsequently help the health foods grocer gain market share.
To pull this off, Amazon and Whole Foods will first need to integrate their logistics and point-of-sale systems. This way, everyone is assured of getting the finest natural and organic foods. continue their The company's relation with trusted vendors and partners around the world will also continue.
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