Expect Cheaper Prices at Pasadena's Whole Foods Markets Starting Today

Amazon Fresh Meal Kit

In the press release, the two companies added they would cut prices on certain items at Whole Foods, including products such as Whole Trade bananas, organic avocados, organic large brown eggs, organic responsibly-farmed salmon and others.

The tech giant's $US13.7 billion purchase of Whole Foods has sent shock waves through the already changing $US800 billion supermarket industry. "These are also all likely private-label products, which we believe gives Amazon significant pricing flexibility".

In a August 24 press release, Amazon and Whole Foods said they would bring "more in-store benefits and lower prices for customers over time as the two companies integrate logistics and point-of-sale and merchandising systems". Even the Amazon Echo, a voice-activated electronic assistant, was being sold for $99.99.

Whole Foods had been just starting to test a loyalty program.

Amazon executives said last week that the goal is to make healthy and organic food "affordable for everyone".

And whole food's private label products will be available through prime pantry and prime now.

"I usually buy my staples like toilet paper and paper towels at Target and Safeway", Oshiro said. Whole Foods' gross profit margins have declined by roughly 250 basis points since the second quarter of 2013, to 34 percent last quarter.

"By working together with Amazon and integrating in several key areas, we can lower prices and double down on that mission and reach more people with Whole Foods Market's high-quality, natural and organic food", Mackey said.

Another customer noted that Amazon products like Echos and Dots are now being sold at a discount in the middle of Whole Foods' produce section. She picked out a rotisserie-cooked half chicken for lunch at the NY store.

So although Amazon may have room to slash prices at Whole Foods, it may not be as much as some think, or it may have a much steeper impact on the bottom line.

On Monday, when the deal closes, Amazon will have instantly gained distribution to 239 new cities.

"Amazon will certainly be able to extract more value from its supply chain by combining the scale it has from its own massive logistics operations along with the infrastructure of Whole Foods", said Forrester technology analyst James McQuivey.

The online retailer just bought a whole round of physical distribution centers, drop-off centers, and most importantly, took the pain out of returning those items that don't fit.

"We waited until Monday to come shopping", said the 41-year-old, who shops at Whole Foods about once a week for most of her groceries.

"We feel great about out position with our network of stores around the country and fast-growing e-commerce and online grocery business", a Wal-Mart spokesman said.


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