Amazon Plans Cuts to Shed Whole Foods' Pricey Image (bloomberg.com)

When Amazon completes its acquisition of Whole Foods Market, Chief Executive Officer Jeff Bezos will try to keep the grocer's reputation for premium fresh foods while cutting prices to shed its "Whole Paycheck" image. From a report: Amazon expects to reduce headcount and change inventory to lower prices and make Whole Foods competitive with Wal-Mart Stores and other big-box retailers, according to a person with knowledge of the company's grocery plans. That included potentially using technology to eliminate cashiers. Amazon, known for its competitive prices, is trying to attract more low- and middle-income shoppers with its grocery push. The Seattle-based company already offers discounted Amazon Prime memberships for people receiving government assistance and is part of a pilot program to deliver groceries to food-stamp recipients.

Comments

That's why people shop there

[Anonymous Coward]

People go to Whole Foods to GET AWAY from lower class people. If I want cheap prices, I'll go to Walmart and deal with the trash that shops there.

Lowering the prices too much will turn Whole Foods into trash. What Amazon needs to be doing instead is leveraging Whole Foods name for home grocery delivery and lowering the prices if you choose that option.

Re:That's why people shop there

[Anonymous Coward]

You would hate me when I go to Whole Foods.

I do metal working on the weekends and there is a WF that is about 15 minutes away from me. I've gone in there with steel dust and Mil-Spec on me and picked up a sandwich or a tub of soup. I go and get it there because there sandwiches are really good and the same price as one from Subway.

Also not everyone who shops at Wal-Mart is trash. There are people who are barley getting by and shop at Wal-Mart because they cannot afford to drop their entire paycheck on groceries.

The Whole Paycheck Image is what sells...

[obenchainr]

I would venture that a big percentage of WF clientele shop there *because* of its high-price reputation. There are studies showing that people feel like they're getting a better quality product when they pay more for something, and that is almost certainly a big part of why people shop at WF. I suspect that trying to compete with Walmart is going to destroy the chain.

Re:The Whole Paycheck Image is what sells...

[Hognoxious]

There's a TV show in Britain called http://www.bbc.co.uk/food/prog... . They take a family and swap some of their expensive brands for generic articles (and disguise the packaging so they can't see). A lot of the time they actually prefer the cheaper stuff, at least when they don't know about it.

Allow local sellers

[Anonymous Coward]

just like on amazon.com, amazon should now allow local sellers to come and sell at Whole Foods stores! this may lead to competitive pricing and benefit whole food's reputation & business, farmers and consumers alike.

Oh

[thevirtualcat]

They want to turn Whole Foods into Wegmans?

I'm... actually okay with that.

Carry on.

Canary in the coal mine

[rsilvergun]

For the death of the middle class. Hear me out on this one. As Whole Foods and other over priced chains are a good indicator of a shrinking middle class. Middle Class people want to feel upscale and are willing to pay for it. They don't make enough money to source their own food stuffs like a billionaire or even a multi millionaire might, but they make enough to eat Organic (which is a fancy way of saying no pesticides in your food and no BHT in your packaging).

As these ever so slightly upscale places go tits up we're seeing the middle class go with them. There's just not enough people making good money to support them. This isn't the company being mismanaged, it's the change in 'change or die'. It just so happens that change is the American Middle Class is going away.

Re: Is Amazon profitable yet?

[AuMatar]

They're vitamins- an almost entirely unregulated market offering a product that has no health benefits for the vast, vast majority of people. Its modern day snake oil to begin with. How the hell do you counterfeit what's already fake?