Whole Foods just got a lot more affordable thanks to Amazon

  • Whole Foods just got a lot more affordable thanks to Amazon

Whole Foods just got a lot more affordable thanks to Amazon

As Amazon works to integrate Whole Foods following the completion of its merger, it is bringing one of its most popular products to the grocery store - the Amazon Echo.

As part of the acquisition, Whole Foods brands will also be making their way onto Amazon.com, Amazon Fresh, Prime Pantry and Prime Now.

The price of organic avocados was lowered from $2.50 each to $1.49 each, bananas (pictured as melons) dropped from 99 cents per pound to 69 cents per pound, and the price of tomatoes on the vine were lowered from $3.49 per pound to $1.99.

Traditionally, Whole Foods (nicknamed "Whole Paycheck" by some) has been known for their high prices and boutique selections.

Check back to this post on Monday morning for details about the price changes.

Workers gathered in big groups and moved around the Whole Foods store in Seattle's Roosevelt neighborhood Sunday evening, assessing items across different aisles.

But will Amazon's purchase of Whole Foods hurt ALDI and other smaller discount grocery stores across the country as much as Walmart has?

The two companies will invest in additional areas over time, including in merchandising and logistics, to enable lower prices for Whole Foods Market customers. The wedding between Amazon and the upscale grocery promises to upend the way customers shop for groceries.

When Amazon.com (AMZN) announced that it would purchase Whole Foods Market in July, Barron's dubbed it the "grocery apocalypse" for the impact it could potentially have on companies like Kroger (KR), Costco Wholesale (COST) and Wal-Mart Stores (WMT).

While Google and Walmart attract the masses, Amazon and Whole Foods have accessed the elite few who can afford the best foods.

John Mackey will remain chief executive of Whole Foods and the company will operate as a subsidiary and continue to be headquartered in Austin, Texas, the companies said on Thursday.

Amazon says it is going to slash the price on a basket of items ranging from organic Fuji apples to "responsibly-farmed" tilapia, but hasn't specified by how much. What the online retailer nearly certainly won't do is undermine the brand equity Whole Foods has built up over decades by lowering the quality of its merchandise.

It wouldn't be the first time Amazon has started price wars with brick and mortar retailers, as it did with booksellers such as Barnes & Noble in the 1990s. When it announced the Whole Foods deal, shares of Canada's large publicly traded grocers dropped around 4.5 per cent, on average.

Amazon could also use a Whole Foods customer's shopping history to enable Alexa to prompt them to buy certain goods, essentially creating a smarter version of the Amazon Dash button to foster more loyalty to Whole Foods. "I was expecting price cuts across the board".

Whole Foods has more than 460 stores in the United States, Canada and the United Kingdom.