Amazon Slashes Whole Foods Prices In Round 2 Of Grocer Wars

Three months after Amazon slashed some Whole Foods prices by as much as 43% on the day its purchase of the grocery chain closed in its first (of many) attempts to steal market share from competitors by selling at a loss, today Amazon announced round 2 of the grocer wars, when it unveiled even more discounts on several grocery products at Whole Foods, just days ahead of the Thanksgiving holiday, sending stocks of rival ultra-low margin grocers tumbling.

The lower prices include deeper discounts on some items for Amazon Prime members and come on top of price cuts already announced by Whole Foods in August. Among the price cuts, Whole Foods said it would sell organic turkey for $3.49 per pound to all customers, while Prime members could buy it at an even lower price of $2.99 a pound.

More price cut details:

Whole Foods Market will also offer lower prices starting today on an additional selection of customer favorites across its stores, including: Value Pack Boneless Skinless Chicken Breasts (Organic and No Antibiotic), Responsibly Farmed Raw Peeled Shrimp, and holiday favorites such as 365 Everyday Value Canned Pumpkin, Organic Broccoli, 1lb Organic Salad Mixes, Organic Russet Potatoes, and Organic Sweet Potatoes.

 

All customers will also see reduced prices on products from some of the most well respected natural and organic brands, including Organic Rice from Lundberg Family Farms, Organic Beans from Eden Foods, Organic Chicken and Vegetable Broths from Pacific Foods, Organic Eggs and Milk from Organic Valley, and Toothpaste from Tom’s of Maine. Whole Foods Market is also offering lower everyday prices on some of the most popular products from well-known brands such as Chobani Yogurt, California Olive Ranch EVOO, Siggis Yogurt, Applegate Hot Dogs, and Fage Yogurt.

 

Whole Foods Market customers are increasingly interested in buying eggs from hens that have access to pasture and so Whole Foods Market is excited to be able to offer lower prices on the entire line of Pasture Raised Eggs from Vital Farms, including their Vital Farms, and Alfresco Brands.

“These are the latest new lower prices in our ongoing integration and innovation with Amazon, and we’re just getting started,” said John Mackey, Whole Foods Market co-founder and CEO. “In the few months we’ve been working together, our partnership has proven to be a great fit. We’ll continue to work closely together to ensure we’re consistently surprising and delighting our customers while moving toward our goal of reaching more people with Whole Foods Market’s high-quality, natural, and organic food.”

The latest price cuts are a “sneak peek” of the savings and in-store benefits that Whole Foods will offer once it begins using Prime as its loyalty program, the grocer said.

Previously, channel checks showed that Whole Foods had cut prices on items including bananas, avocados to draw customers away from retailers such as Wal-Mart and Trader Joe’s.

News of the price cuts slammed the shares of its competitors such as Costco, Sprouts Farmers Market, and Kroger, as nervous Investors have been watching and waiting for any further price cuts at Whole Foods, and their adverse effects on the U.S. grocery industry, which is already reeling under a brutal price war. Kroger fell as much as 3.5 percent to $21.25, its biggest intraday decline in a month. Sprouts tumbled as much as 3 percent to $19.98.

Amazon, which branched out into brick-and-mortar retailing with its purchase of Whole Foods in its endless quest for global monopolistic domination, hopes to upend the grocery industry and undercut traditional retailers by using its deep pockets, triple digit PE multiple and large presence. And, as the chart below shows, investors have been jumping over themselves to reward Jeff Bezos - now the world's richest man - as he creates the world's most comprehensive commerce monopoly.

Comments

cheech_wizard Wed, 11/15/2017 - 14:58 Permalink

"Organic Turkeys" - the only turkeys I see are those who would pay that much per pound.Standard Disclaimer: If I'm really luck I may shoot one off my back porch. Already taken 1 fair sized doe not 100 yards from the house. 

Automatic Choke Shitonya Serfs Wed, 11/15/2017 - 15:18 Permalink

BREAKING NEWS :Amazon has slashed the quality of the crap at Whole Foods! They used to be a decent grocer for high end veggies and great fish & meat -- but not anymore.   Now they are just another grocery store with uber high prices because of what remains of their reputation as a granola head place.   Good going Amazon, you left them no demographic. 

In reply to by Shitonya Serfs

tion T-NUTZ Wed, 11/15/2017 - 15:27 Permalink

Kind of unrelated, but my hippie self bought some 'conventional' carrots for the first time in years (no 'clean' carrots at the store here), and I put one out for the deer.  They are out in the yard every day, but a week later the carrot is the only thing they still haven't eaten.  At this point I am unsure if it actually qualifies as food.

In reply to by T-NUTZ

TheFreeLance Wed, 11/15/2017 - 15:03 Permalink

Yeah, not mentioned is that Bezos boys are booting all the local producers and suppliers who cannot scale to hit their wholesale price targets. Straight out of the WalMart playbook. How inventive. We are talking about premium products that commanded premium pricing and drove foot traffic. Now WF will just feature the national brands that UNFI can get them, along with in-house brands, and, most of all, the highest profit, most in demand prepared foods. 

USA USA Wed, 11/15/2017 - 15:02 Permalink

This asshole is losing money everyday with Scamazon, and now Whole Foods.Keep buying there and your local market goes out of business. You saved a buck, but watch the prices skyrocket when competion is gone. I will Never shop Whole Foods and contribute to the demise of his competors.It's hard to think that someone can continue to lose so much money for so long.Imagine what good he could have actually done with those dollars!

baldknobber Wed, 11/15/2017 - 15:05 Permalink

Amazon is just being the drunk who shits in the pool and ruins it for everyone. You slash prices and make the people think the other guys are ripping them off. The average guy don't know or care that Amazon can bleed red out of their ass for years. If the industry doesn't crack and re-arrange around Amazon's model ,then Amazon will be out of the grocery business in less than 10 years. But, the wreck they will have created will last much longer. Groceries are a fuck tough business with no margins, even Wal-Mart stayed away as long as they possibly could

Miffed Microbi… Flyingcement Wed, 11/15/2017 - 15:37 Permalink

Tomorrow is our Turkey Day when we butcher our Tom and three hens. It's quite the project and unfortunately none of our friends could make it this year so it just me, Mr and our local community butcher who does all the animals in our small town.

Everyone who gets one of my turkeys says it the best tasting bird they even have eaten. What's my secret? Well, good quality feed, all the greens I can get from our garden and from the trimmings at the local farmers market. Plus they are hand raised so they follow me around everywhere and love to be petted. Mr always told me never to play with my food and yes, knowing what will happen tomorrow makes me appreciate his admonition. I can't help it. It's our Eddie Albert, Eva Gabor moment but I know they had a good life.

I wish more people could experience this, even the sadness because it connects you with the world in a way you realize how tenuous life is and how thankful you should be for what you have.

Miffed

In reply to by Flyingcement

Miffed Microbi… Manipuflation Wed, 11/15/2017 - 17:21 Permalink

To be honest with you, after everything is set up and the water is at the proper temp, I take a walk. This time I know I will shed a few tears because this group has been quite special. When the deed is done Mr will text me and I will pull myself together and come back to help.

Mr knows my femininity does get in the way of this event. One of the reasons I was rejected by his family. I was Town, not Farm. But he respects my willingness and effort to try. He saw value in me where his family found none. That makes me smile.

Miffed

In reply to by Manipuflation

Turquoise5 Wed, 11/15/2017 - 15:10 Permalink

Bezos thinks he is smart. All he is doing is getting publicity.  Everybody knows HoleFoods are so outrageously overpriced.  He could cut prices 200% and still be at a price point above all major grocery chains.  Don't believe the hype!And the funny part was that WF wasn't making money when they had those outrageous prices.  Now, Bezos can make up the much bigger losses he just caused on more volume!

Manipuflation Omega_Man Wed, 11/15/2017 - 15:36 Permalink

Bezos is probably buddies with Eddie S. Lampert who is another one of them.  And fast Eddie was colllege roomates with whom?  That's right, Steve Mnuchin, our Secretary of the Treasury, who might be a little more Jewish than normal.  We know that Fast Eddie is buddies with with Mark Cuban.  Mnuchin is buddies with Trump.  Cuban is buddies with Hillary.  And now Cuban might run for Prez.We are getting jobbed.

In reply to by Omega_Man