After only one day of officially owning Whole Foods, Amazon has slashed prices up to 43 percent.
Mark Baum, a senior vice president at the Food Marketing Institute, an industry group, said in an interview with Bloomberg:
“Price was the largest barrier to Whole Foods’ customers. Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their pricing strategies, and maybe find some funding sources to build a war chest.”
It appears that the price docking at Whole Foods has already changed the shopping habits of many who used to avoid “Whole Paycheck,” as it’s nicknamed.
This huge change might kick start a new trend (that’ll hopefully stick around) in grocery pricing. Bloomberg reports that Wal-Mart and Costco have already “invested billions” in lowering prices to compete.