Amazon Slashes Whole Foods Prices As Much As 43%, Channel Checks Reveal

Following up on last week's story that sent grocer - and Wal-mart - stocks tumbling, when Amazon annonced it would cut Whole Foods prices as soon as Monday, Bloomberg reports that according to channel checks, "Amazon spent its first day as the owner of a brick-and-mortar grocery chain cutting prices at Whole Foods Market" by as much as 43%.

Some early examples observed at the Whole Foods store on 57th Street in Manhattan:

  • organic fuji apples were marked down to $1.99 a pound from $3.49 a pound;
  • organic avocados went to $1.99 each from $2.79;
  • organic rotisserie chicken fell to $9.99 each from $13.99;
  • banana prices were slashed to 49 cents per pound from 79 cents.

Following the news, European grocer stocks ticked lower again, while Kroger was down 2%, as apparently the size of the markdowns came as a surprise to the market and as Whole Foods peers will now struggle to catch down to its heavily subsidized competitor, watching their margins and profitability erode in the process.

Comments

just_looking duo Mon, 08/28/2017 - 11:13 Permalink

It sounds like there is a wide discrepency in food prices nationally, or commentors here only grocery shop occasionally. Whole foods is the closest grocer to us, but i almost never go there and when i do it is only in a pinch for just a couple items. I do all of the graocery shopping for our household in SW CT and many of these prices are the same or lower than non-organic items at typical grocerers (Stop & Shop and Shop-Rite). THey are not all lower, but this is something.organic apples 1.99 is same price as regular (non-organic) apples. bananas 49, is lower than all but 1 store, gr beef is the same as other stores unless on sale, but again WF is better quality. 

In reply to by duo

just_looking duo Mon, 08/28/2017 - 11:13 Permalink

It sounds like there is a wide discrepency in food prices nationally, or commentors here only grocery shop occasionally. Whole foods is the closest grocer to us, but i almost never go there and when i do it is only in a pinch for just a couple items. I do all of the graocery shopping for our household in SW CT and many of these prices are the same or lower than non-organic items at typical grocerers (Stop & Shop and Shop-Rite). THey are not all lower, but this is something.organic apples 1.99 is same price as regular (non-organic) apples. bananas 49, is lower than all but 1 store, gr beef is the same as other stores unless on sale, but again WF is better quality. 

In reply to by duo

kareninca just_looking Mon, 08/28/2017 - 20:55 Permalink

You got downvoted, but I think you are right.  My parents grocery shop in SE CT.  The produce prices are ridiculously high at Stop and Shop and Shop Rite.  My dad goes to whole foods a couple of times a year (when he happens to be near one) and he says that the prices are not any worse than S&S and SR, and the quality is better.  Basically, CT has lousy grocery stores.

In reply to by just_looking

Memedada RawPawg Mon, 08/28/2017 - 08:43 Permalink

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Tabel - Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:"";
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
mso-para-margin-top:0cm;
mso-para-margin-right:0cm;
mso-para-margin-bottom:10.0pt;
mso-para-margin-left:0cm;
line-height:115%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-fareast-language:EN-US;}
The only thing the Mises-people got right is the deflationary nature of a debt-based economy. The expected ricing prices as a result of a hyperinflationary monetary base is only logic if there was any MONEY. But there’s not – only FIAT/IOU’s. In other words the actual available cash/fiat for transactions is diminishing due to rent. The money given to the FIRE-sector is borrowed to the plebs with rent = there’s de facto less money than debt (borrowed money + rent = the money for the rent does not exist in the economy). So more and more money for the banksters and less and less for consumption (again, for the plebs – it’s a different game for the owners of the Ponzi/economy).   The economy is designed to make wealth trickle up to the “rentier class/the ownership class/the capitalists”.

In reply to by RawPawg

MEFOBILLS Memedada Mon, 08/28/2017 - 11:31 Permalink

The only thing the Mises-people got rightMIses Monks are not good sources for how an economy actually works.  The overwhelming amount of Jewish intellectuals that contribute to their a-priori "market" concepts should be a dead give-away to those who are aware.  Rockefeller money sustained Jewish Mises Monks during their formative period.  Austrian Herediatary Kings worked with Jewish tax collectors as part of Oligarchy, and hence 'Austrian"  economics moniker.Monks talk about free markets as if markets are god, but what monk noxious nostrums do, is make markets free for rentiers.  Classical economists actually wanted to make economies free from rents.  Making markets free for rent takings is the Jewish usury method.  Making markets free FROM rents, lowers access prices for all.Classical economists like Hudson also predicted the 2008 crash.  We could probably put Keen in the classical category too.  So, even Monk boasting about predicting 2008 crash is not impressive.   

In reply to by Memedada

TheRedScourge MEFOBILLS Mon, 08/28/2017 - 13:11 Permalink

Basically every school of thought in economics and piolitical philosophy have had plenty of Jewish intellectuals at their very core. That's what you get when a certain ethnic group has an average verbal IQ of 110 instead of 100. So does that mean we can throw it all away and go back to a barter economy now?The notion that the interest rate can be 0% and that rent can be dropped to $0 is the sort of asinine thinking that grade school children grow out of after a few years of basic arithmetic. Things cost money, and money itself is also a thing, so borrowing it costs money.

In reply to by MEFOBILLS

Bill_Brasky_69er StackShinyStuff Mon, 08/28/2017 - 10:31 Permalink

If you've got the money to toss around and buy organic then great .. can't hurt right ? I know about 15 people who work in the organic food industry .. sales reps .. producers .. business developers .. etc .. not one of them believes the "organic is better for you" line. It's just a giant crock of bs that hipsters and libs love to drink from. Many of the "organic" foods and ingredients are shipped directly from China- where there is no oversight into what is classified as organic (not that the US has any oversight either). Also - since round up is so bad there is no question that the 90% of farmers who have been spraying it for the last 20 years will all be dead soon because of its toxic effects. TLDR: A lof of 'Organic' food is shipped from China and isn't really 'organic' by your standards & All farmers who have sprayed RoundUp over the last 20 years will soon be dead from exposure. Also, buy gold and don't believe people on the internet. 

In reply to by StackShinyStuff

dumluk Bill_Brasky_69er Mon, 08/28/2017 - 11:15 Permalink

A lot of organic food is imported from China? Well, provide the evidence for that one please.....The organic foods available in local health food stores in Hawaii  all come from local small scale ecological minded growers, most of who we know personall so thats a crock.....Now in NYC it might well be another story. And WF has proven themselves guilty of fraud a few times, so who knows.......Anyway, Amazon has got it on the right track and it may soon be competitive......I say hip hip hooray.......and as for the farmers who will be dying soon from so many years of using roundup, Im sure that will indeed be the case....One friend of mine who is a landscape contractor in Maui, got very sick some years back, and came to the conclusion that it was due to all the chemicals he was using so he quit using them, and voila, he got better..........case in point! Anybody who doesnt recognize the validity of eating healthy organic foods and divorcing themselves from the toxic chemical sphere is a fucking retard IMHO.........wake up and smell the geisha organic coffee those of you still in that great rive in Egypt........

In reply to by Bill_Brasky_69er

TheMexican Mon, 08/28/2017 - 08:37 Permalink

I think the story we have been force fed our whole lives which says "grocery stores only have 1% margin" has been a lie.

In fact I know it is....

TheRedScourge tmosley Mon, 08/28/2017 - 13:27 Permalink

That's probably because they're dealing in cash and not claiming it, which eliminates 3% off the bill, and the 35% corporate income tax.Also, if you're buying something they want to get rid of, you can usually get a bargain just so they don't have to take a 100% loss on throwing it out.At the end of the day, after all the normal business expenses, the margins ARE 2-3%, but it's when you can cut out much of the normal overhead where you can save big.

In reply to by tmosley

baldknobber TheMexican Mon, 08/28/2017 - 09:26 Permalink

Deli, health and beauty, Meat are were the margins are. Canned and dry goods they make nothing and lose money on "loss leaders". Ever wonder why you can buy a large bottle of ketchup cheaper than a smaller bottle? If you have a sharp  produce manager and crew who can control  loss and trimmage you can do alright in produce

In reply to by TheMexican