Shop at Whole Foods? You Should Thank Amazon
When the Internet giant bought the upscale grocery chain for $13.7 billion, a lot of people were anticipating good things to come of the transaction. Well, with only one day of business of being the owner of a brick-and-mortar grocery chain, Amazon was able to cut prices on certain products by as much as 43 percent.
The supermarket industry is a $800 billion business – and the synergy between a delivery service and groceries is undeniable. If there’s any time to change the way a consumer shops and thinks about food, it’s probably now. Those who shop at Whole Foods know that it has a reputation for its high costs. When Amazon slashed prices, it wasn’t just a signal to its competitors – it was a threat – and businesses such as Costco, Wal-Mart, and Kroger should take notice.
Now that prices are starting to become competitive, think you can make the switch? Mark Baum, SVP at the Food Marketing Institute, said that price was the largest barrier to attracting customers. Now that they’re willing to invest in the business, hopefully this helps their bottom line, and keep some of that hard earned money in your pockets as well.