Here Are the Benefits Amazon Prime Members Will Get at Whole Foods

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Ben Bienvenu, a research analyst at Stephens, noted that Sprouts has more overlap than other retailers with Whole Foods' business and attributed the outsized decline in Sprouts' shares to "the price changes that we've seen in Whole Foods' stores" and "exposure to Texas and potential for some store closures associated with Hurricane Harvey". Amazon's shocking $13.7 billion takeover of the upscale grocer will increase competition in fast-growing markets like Charlotte, thanks to lower prices and new technology, experts say.

Wal-Mart, the world's biggest retailer, has already invested billions into lowering prices across the board over the past year or so, and has revamped the produce section at its USA stores, improving sight lines, adding more fresh-cut fruits and even creating a sweeter bespoke cantaloupe.

Whole Foods co-founder and CEO John Mackey said the market has been on a mission to bring the highest quality food to customers.

The Echo was discounted from $179.99 to $99.99 at the Gowanus Whole Foods store. It can nix underperforming products in Whole Foods and use the extra storage behind the scenes to stock its own in-demand items.

Whole Foods Markets healthy and high-quality private label products—including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch—will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.




Shazneen Gandhi, 41, in Los Angeles said the Amazon-Whole Foods merger is a frequent topic of conversation among her friends and fellow mothers. Orange signs for the marked-down items read "Whole Foods + Amazon". Whole Foods' gross profit margins have declined by roughly 250 basis points since the second quarter of 2013, to 34 percent last quarter.

Lowering prices could stem defections by price-sensitive Whole Foods shoppers, and help the grocer shed its "Whole Paycheck" reputation for high prices that are generally 15-25% above rivals.

Customers can have products shipped from Amazon.com to a Whole Foods store for pick up or send returns back to Amazon during a trip to a store. "If they lower price significantly, they'll have to overcome a major hurdle with maintaining the quality". Discounts on rotisseries chickens - which weren't yet on display at 8 am ET - ranged from 11 percent to 29 percent.

Amazon said those changes were just the beginning, but didn't give details on what more is coming.

At least one Federal Reserve official has indicated that Amazon's purchase of Whole Foods could further weigh on overall inflation. But such reorganization would likely cause them to expand in the longer term, assuming Whole Foods is able to draw in more customers with its lower prices. And it will turn them into Amazon customers and advance its bid to become the dominant player in all of retail - the so-called everything store.

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