In a August 24 press release, Amazon and Whole Foods said they would bring "more in-store benefits and lower prices for customers over time as the two companies integrate logistics and point-of-sale and merchandising systems".
Whole Foods Market's private label products-including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch-will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
Slashing prices at the organic grocery chain, which has such a deep-rooted reputation for high prices that it has been given the nickname of Whole Paycheck, is a signal that the e-commerce giant is very serious about grappling with its competitors such as Kroger Co., Costco Wholesale and the country's largest grocery chain Walmart Stores.
Don't expect bargains galore - at least, not yet - as Amazon takes over Whole Foods Market, but price cuts starting Monday on some key items will certainly make for a nice start.
"The price drop makes me want to shop here", Allaman said. And they will eventually be able to buy some Whole Foods products from Amazon.com.
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The online retailer isn't wasting any time remaking the high-end grocery chain in its low-price image.
Produce at Union Square Whole Foods.
It's an "opening salvo" in the grocery wars, said Neil Saunders, managing director of GlobalData Retail, and shares of other supermarkets fell sharply on the news.
A half-gallon of milk was 50 cents cheaper at a Whole Foods in NY. John Mackey will remain as CEO and Whole Foods Market's headquarters will stay in Austin, Texas. Whole Foods' gross profit margins have declined by roughly 250 basis points since the second quarter of 2013, to 34 percent last quarter.
The organic supermarket is located downtown inside the elegant Hahne mixed-use building on Broad Street, home to several businesses and offices, including a Petco and Express Newark university-community collaboratory, along with 160 market-rate and affordable apartments.
The cuts come days after Amazon promised to reduce the price of foods at its newly acquired organic grocery store.
Whole Foods will also offer Amazon package pickups and returns inside the stores.
Wal-Mart, the world's biggest retailer, has already invested billions into lowering prices across the board over the past year or so, and has revamped the produce section at its United States stores, improving sight lines, adding more fresh-cut fruits and even creating a sweeter bespoke cantaloupe.