Amazon seems to want to have a very nice beginning at Whole Foods. This is why it has decided to cut the prices for some specific items. So, things like organic apples or tilapia will be more affordable from now on. Nobody knows how much will the prices collapse, but one can agree that this is indeed a good start for the company. From now on, people will probably cease to call Whole Foods “Whole Paycheck”. This move also prompted experts and customers to wonder how will this price cut affect the business, starting from competitors and shopping patterns.
Whole Foods to cut prices
It’s interesting that Amazon can very easily cut those prices, thanks to its enormous supply chain. Also, the fact that it’s a giant force in the industry gives it the advantage of having a huge buying power. This comes in handy when the company is negotiating the prices with the producers. Experts think that Amazon will surely come out on top thanks to its ability to combine the logistics with Whole Foods’ already well-developed infrastructure. So, reducing those prices will not take too much effort. Amazon’s scale will allow it to do this just through logistics. Also, some are suggesting that this plan to cut prices on some products is meant as a long-run initiative.
It’s interesting that some people are now worried that the quality of those Whole Foods products will decrease. This should not be the case as the company will not risk losing its clients. Whole Foods has a history of promoting organic and natural products, a trend which many other supermarkets have adopted in time. Analysts are sure that the product quality will not drop with the prices, despite worries from many people in the industry and clients.
A new era
As for competitors’ urge to also drop prices after Amazon’s move, experts are saying there won’t be one. So, you probably won’t have to check every supermarket to find the cheapest products. Instead, competitors will try to attract customers through other tricks. People will start seeing more wine tastings, cooking demonstrations or even meal-planning projects. All of those things will be a part of their strategy to not lost customers to the falling prices of Whole Foods.
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