The online retailing giant – Amazon Inc. – spent its first days as the owner of a brick and mortal grocery chain by reducing the price of the products by as much as 43% at Whole Foods Market. The voice-activated assistant of the e-commerce company – Amazon Echo – was for sale at the store as well, priced at just $99.99.
Sale at whole foods market of Amazon
Organic fuji apples were priced at $1.99 a pound, way less than the actual market price of $3.49 a pound whereas the organic avocados were priced at $1.99 each at the store on East 57th Street in Manhattan. The actual price of single organic avocados is $2.79. Other prices reductions includes whole foods like organic rotisserie chicken that was priced at $9.99 each (way less from $13.99).
In addition to this, the cost of some bananas was reduced to from 79 cents to 49 cents per pound. The products that saw a reduction in prices also came with orange signs that read “Whole Foods + Amazon.” The signs listed the new price, the old price and “More to come…” The sale of Amazon Echo was a sharp pivot into electronics for the online retailing company which is known for quinoa and kale. The smaller version of the voice-activated assistant – the Echo Dot – was advertised for $44.99.
The $13.7 billion purchase of Whole Foods by the e-commerce giant has shocked the ever-changing $800 billion supermarket industry. The increasing and strengthening relationship between the upscale grocery market and the U.S.-based online retail market is promising to change the way the customers shop for groceries.
Amazon is very serious about competing with rivals like Wal-Mart
Decreasing the price of whole foods at the chain is an indication that the online retailing company is quite serious about taking on rivals like Kroger Co., Wal-Mart Stores Inc. and Costco Wholesale Corp. Mark Baum, a senior vice president at the Food Marketing Institute, an industry group, said, “Price was the largest barrier to Whole Foods’ customers. Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their pricing strategies, and maybe find some funding sources to build a war chest.”
The reduction in price brought him to the East 57th Street store, said Simon Salamon, a 60-year old regular Whole Foods shopper. He added that it reminded him why he shops at Amazon. He further said, “Ninety-nine percent of the time they have the best prices and their return policy is great. With the prices lower, I think we’re more likely to shop here every day.”