Forefront Communications

Los Angeles Times: Whole Foods Prices Cut Again by Amazon Just in Time for the Holidays

Mark Dowd

Mark Dowd

Amazon’s acquisition of Whole Foods is a gift that keeps on giving. On August 28, the company’s $13.7 billion purchase resulted in a drastic price-dropon salmon, avocados, and bananas. Now, just in time for holiday grocery shopping, the company has announced another permanent price cut, which according to data from Thasos Group has been successful for the brand.

According to Reuters, Whole Foods will sell organic turkeys for $3.49 per pound to all customers and $2.99 per pound to members of Amazon Prime. Prices are also expected to drop on big brands like Chobani Yogurt and Applegate Hot Dogs as well as private labels such as Eden Foods.

The first time around, Whole Foods’ price reduction paid off for the brand. A study conducted by Thasos Group showed that shoppers were leaving WalMart, Trader Joe’s, and Aldi, among others, to instead shop at Whole Foods. But according to another study, the overall cost of groceries fell by only 1 percent. The brand was able to maintain an illusion of having significantly cheaper products by hiking up the cost on others – like frozen food, which became 7 percent more expensive than its normal price.

But with the new price cuts, U.S. grocers will have to get more competitive than ever.

Read the full article here.

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