27 August, 2017
Whole Foods is about to get cheaper starting on Monday, August 28.
Amazon is cutting the prices of bananas, butter, organic eggs, and other best-selling staples at Whole Foods' 470 stores, promising customers lower costs and targeting the grocer's "Whole Paycheck" nickname. Customers will soon have the option of having products shipped to their local Whole Foods Market store from Amazon.com for pick up.
Calling the combined venture "the first of a new breed of cyber-physical retailers", professor Lee McKnight of Syracuse University's school of information studies says Amazon's first priority isn't to boost Whole Foods' sales volumes - it's to boost the amount of data the company has about its customers.
"We're determined to make healthy and organic food affordable for everyone".
And Amazon Prime members have even more reasons to be excited. "There is significant work and opportunity ahead, and we're thrilled to get started". John Mackey will remain as Whole Foods Market's CEO and its headquarters will still be in Austin, Texas.
"As part of our commitment to quality, we'll continue to expand our efforts to support and promote local products and suppliers", he said.
"And this is just the beginning - we will make Amazon Prime the customer rewards program at Whole Foods Market and continuously lower prices as we invent together".
It's unclear exactly how much prices will lower, or when the other changes will start.
Daniel Domberger, Partner at M&A specialists Livingstone, said the real story is not the takeover approval, but the way in which delivery companies like Amazon are aligning themselves with grocery companies such as Whole Foods. It's been also planned to make Amazon Prime as Whole Foods Market's customer rewards program.
Amazon sent ripples through the grocery industry when it announced it would buy Whole Foods back in June. They can also do product returns to Amazon via their Whole Food store.
And there will be more changes rolling out over time.
Whole Foods Market will continue to grow its team and create jobs in local communities as it opens new stores, hires new team members, and expands its support of local farmers and artisans. These include 365 Everyday Value, Whole Foods Market, Whole Catch, and Whole Paws.
With the new details, Amazon is revealing some of its goals for this acquisition - including gathering customer information from Whole Foods' clientele.
