WHOLE FOODS NO LONGER WHOLE PAYCHECK. Amazon Cuts Prices at Whole Foods – By Todd Horwitz, Bubba Trading

 

Amazon is slashing prices on hundreds of products at Whole Foods for the third time in two years. The cuts will go into effect Wednesday and are mostly focused on produce. Amazon and Whole Foods said customers will save an average of 20% off select items, including greens, tomatoes and fruits.

They’ll also double the number of weekly deals for Prime members, and will give those people an additional 10% off “hundreds of sale items” throughout the store. Prime members in dozens of metro areas can also get free Whole Foods grocery delivery if they spend more than $35.

Amazon bought Whole Foods two years ago for $13.7 billion and has since tried to revamp the premium grocery brand’s “Whole Paycheck” image. The company quickly cut prices on avocados, organic brown eggs, salmon and other items soon after the acquisition. Despite those cuts, prices at Whole Foods have risen for three straight months, according to Morgan Stanley analyst Vincent Sinisi. In March, Sinisi found that Whole Foods’ prices were 15% higher than rival grocers.

“Whole Foods Market continues to maintain the high quality standards that we’ve championed for nearly 40 years and, with Amazon, we will lower more prices in the future, building on the positive momentum from previous price investments,” CEO John Mackey said in a statement.

Whole Foods will continue to build on its special offers for Prime members, as well as efforts to promote sales online. The grocer is doubling the number of exclusive deals for Prime members, it said on Monday. The company also hasn’t given up on trying to recruit more Prime members. In April, Amazon will offer Whole Foods customers $10 off a $20 purchase when they try Prime online. New members can try Prime free for 30 days.

Todd “Bubba” Horwitz

IN ASSOCIATION WITH

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.