Amazon Is Slashing Whole Foods' Prices By 20 Percent On Hundreds of Items (wsj.com)

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Amazon Is Slashing Whole Foods' Prices By 20 Percent On Hundreds of Items (wsj.com)

Posted by BeauHD on Monday April 1, 2019 @09:43AM from the slice-and-dice dept.

An anonymous reader quotes a report from The Wall Street Journal: Amazon is planning to cut prices on hundreds of items at Whole Foods stores this week (Warning: source paywalled; alternative source), as the e-commerce giant seeks to change the chain's high-cost image amid intense competition among grocers. The price cuts affect more than 500 products and include a focus on produce and meat, according to documents viewed by The Wall Street Journal. The move comes after Whole Foods raised prices on select items in February, mostly consumer products, as suppliers increased their prices because of higher transport and ingredient costs.

The latest cuts -- which are set to drop at Whole Foods stores on Wednesday -- are some of the broadest since Amazon bought the grocer for nearly $14 billion in 2017. Prices will be reduced by an average of 20 percent on the selected items. The e-commerce giant has tried to extend its own reputation for low prices and convenience to Whole Foods, to counter a sense among some consumers that shopping there required a "Whole Paycheck." The discounts include more produce and meat products than the earlier cuts. The price of organic-rainbow carrots, for instance, will drop by $1, to $1.99, and the price of Black Forest ham will drop $3 a pound to $9.99. The companies also said Monday that Amazon Prime members would be able to save more than before at Whole Foods, with double the number of weekly Prime Member deals and deeper discounts. The report adds that the price cuts are expected to last at least through the end of the year.

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Slashdot: news for housewives and senior citizens by xxxJonBoyxxx · 2019-04-01 09:51 · Score: 1, Funny

>> price cuts affect more than 500 products and include a focus on produce and meat, ...after Whole Foods raised prices on select items in February

Er...thanks Slashdot. How about some adverts about "double coupon Wednesdays" at Food Lion while you're at it?
Now just 20% more by nwaack · 2019-04-01 10:06 · Score: 1

and they'll actually be in line with what they should be charging.
1. Re:Now just 20% more by Shaitan · 2019-04-01 10:18 · Score: 1
  
  Nah, those reduced prices are still double the rate they need to be on par with other grocers. Another 20% will bring them in line with a specialty butcher maybe.
Well gee. by roc97007 · 2019-04-01 10:09 · Score: 1

We won't be able to call them "Whole Paycheck" anymore. Rats.

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1. Re:Well gee. by thevirtualcat · 2019-04-01 10:21 · Score: 2
  
  Yeah. "80% of your paycheck" just doesn't have the same ring to it, does it.
2. Re:Well gee. by 93+Escort+Wagon · 2019-04-01 10:45 · Score: 1
  
  Pretty soon we're gonna see commercials with a yellow smiley-face bouncing all over the store, knocking the prices lower and lower...
  
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3. Re:Well gee. by Cmdln+Daco · 2019-04-01 11:00 · Score: 1
  
  Commercials? Where would we see commercials?
  link
4. Re:Well gee. by bill_mcgonigle · 2019-04-01 11:02 · Score: 2
  
  We won't be able to call them "Whole Paycheck" anymore. Rats.
  People shouldn't shop at grocery stores where they can't afford the prices. I rarely go into a Whole Foods and only then for specialty items. I don't have an unlimited supply of money, and it sounds like the complainers don't either. I have better things to spend the delta on food prices on.
  These entitled morons might not believe that the vast majority of the population cannot afford to shop there either. It's "groceries for rich folk" and that is fine but not everybody is rich and people who aren't rich should shop where the prices are better.
  I hate to get all "latte and avocado toast" here, but how many people who complain about the cost of Whole Foods also can't afford a downpayment on a house?
  
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5. Re:Well gee. by roc97007 · 2019-04-01 11:33 · Score: 2
  
  I don't think Whole Foods is entirely "groceries for rich folk". I like to think that, if you're making a reasonable wage (middle to upper middle class), you can afford one expensive thing, if you're not concerned over much with having something for emergencies or retirement. So, you could have, say, an expensive car, or a nice condo, but probably not both.
  Or, you could have a rat car and live in a single-wide, but buy pretentious groceries. :-) And apparently for some people, the feeling of paying extra for excellence in ... groceries (I'm sorry now that I write that it seems ridiculous) is enough for them.
  But your point is valid. If you're rich and want everyone to know it, the Whole Foods grocery bags in the back of your Porsche Cayenne are probably a good start.
  
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6. Re:Well gee. by 93+Escort+Wagon · 2019-04-01 18:07 · Score: 1
  
  Commercials are the 30-60 second short videos which fill up most of the air time during the Super Bowl.
  Not the brief interstitial periods where groups of large men wearing padding and helmets were trying to kill each other. I’m not sure what that part was... maybe a Game of Thrones spinoff?
  
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So? by niff · 2019-04-01 10:10 · Score: 1

Some products get cheaper, some get more expensive. Happens all the time in any shop.
This smells like a commercial for Amazon, sneaked in as "news for nerds".
1. Re:So? by rtb61 · 2019-04-01 14:13 · Score: 1
  
  Organic product, bought at select and audited farms and that product inspected by trained staff to maintain quality, as well as biological testing of product, cost money and make good product much more expensive. Not that Amazon would do that, they would just bullshit that they do and buy the cheapest rubbish they can get and sell it at inflated prices and pretend it is high quality product because that is where the big profits are.
  
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Loss leaders are a key factor by WillAffleckUW · 2019-04-01 10:14 · Score: 2, Insightful

Most grocery chains use loss leaders to bring people into stores. Resetting the prices for meat and produce means people in the market for that will come in, and then they can put such items in places that have you pass by other items they haven't marked down "oh I need eggs, oh I need yogurt, oh I need a Prime Steak, since I get a 20 percent discount" and then you feel like you won, even though your bill isn't really that much lower.
Except people like me, who buy the cheap things in bulk and visit 2-5 stores a week on our way home, buying only the sale items at each venue. For most people the time element means they'll spend their whole paycheck there (hence the original nickname for Whole Foods, which is Whole Paycheck). Which is sub-optimal. It's also why you buy lottery tickets that return only 45 cents on the dollar. You think you win, but you don't. Buy raffle tickets instead.

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1. Re:Loss leaders are a key factor by Shaitan · 2019-04-01 10:20 · Score: 1
  
  These aren't loss leaders, they are easily double what other grocers charge.
  If you are shopping for premium produce at low prices I recommend the Hispanic store.
2. Re:Loss leaders are a key factor by ShanghaiBill · 2019-04-01 10:35 · Score: 2
  
  If you are shopping for premium produce at low prices I recommend the Hispanic store.
  Asian stores also have fresh produce at low prices. I live in San Jose, and there are plenty of Asians here, as well as plenty of Hispanics.
3. Re:Loss leaders are a key factor by WillAffleckUW · 2019-04-01 10:43 · Score: 2
  
  They're loss leaders in that chain, not as an objective whole. I can literally go to six stores in Seattle that sell produce far cheaper, and yes, they do tend to be Asian stores. Examples are at NE 65th and University Way, NW 65th and 15th, one near the VA hospital, two in the international district.
  The question is, are they loss leaders in the sub area (e.g. stores near the Whole Foods, which are in Magnolia (wealthy neighborhood), South Lake Union (wealthy neighborhood). If they are, they may attract people nearby who then won't bother driving to Southcenter to get cheaper goods, or go to Costco.
  I frequently find even QFC (which tends to be more upmarket) to have specials on meats that are lower than even Safeway.
  
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4. Re:Loss leaders are a key factor by omnichad · 2019-04-01 11:19 · Score: 1
  
  If the individual item doesn't net a loss vs costs, then it's not a loss leader.
5. Re:Loss leaders are a key factor by ShanghaiBill · 2019-04-01 11:25 · Score: 2
  
  The produce at the Asian/Hispanic stores is about half the price at mainstream stores like Safeway, and about a quarter the price at Whole Foods.
  They also have some vegetables and fruits you will not see in mainstream stores.
  The only vegetable you find in mainstream stores that they lack is brussel sprouts. The Asians and Hispanics have enough sense to realize that when God created brussel sprouts He was JOKING. They were never meant to be taken seriously and eaten as food.
6. Re:Loss leaders are a key factor by WillAffleckUW · 2019-04-01 11:33 · Score: 1
  
  The routing choices all work out about the same, actually.
  
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7. Re:Loss leaders are a key factor by omnichad · 2019-04-01 11:49 · Score: 1
  
  It could certainly create the perception of one. But claiming it is one just dilutes the term. It does not actually lead people into the store by offering something at a loss.
8. Re:Loss leaders are a key factor by omnichad · 2019-04-01 11:59 · Score: 1
  
  No, I'm arguing over semantics and you're treating it like discussion on economics.
9. Re:Loss leaders are a key factor by omnichad · 2019-04-01 13:03 · Score: 1
  
  No, but "loss leader" is a specific textbook term with a specific meaning. Those are the semantics.
10. Re:Loss leaders are a key factor by TheRealQuestor · 2019-04-01 14:04 · Score: 1
  
  The produce at the Asian/Hispanic stores is about half the price at mainstream stores like Safeway, and about a quarter the price at Whole Foods.
  They also have some vegetables and fruits you will not see in mainstream stores.
  The only vegetable you find in mainstream stores that they lack is brussel sprouts. The Asians and Hispanics have enough sense to realize that when God created brussel sprouts He was JOKING. They were never meant to be taken seriously and eaten as food.
  what's wrong with brussel sprouts? I freaking LOVE them. I even grow some. Man in some garlic butter or pickled... Got my mouth watering.
11. Re:Loss leaders are a key factor by omnichad · 2019-04-01 14:12 · Score: 1
  
  Words have meaning - and the concept describes itself with perfectly understandable dictionary words. And stop misspelling wretcheds. It's not a different word.
12. Re:Loss leaders are a key factor by Shaitan · 2019-04-01 16:11 · Score: 1
  
  "Corralory: if an average item in Whole Foods has a markup of 400 percent, an item which only has a markup of 10 percent could be viewed as a loss leader,"
  No, it wouldn't. A loss leader is something you sell at or BELOW cost. You take a loss on it. A 10% profit is a profit, not a loss.
13. Re:Loss leaders are a key factor by Shaitan · 2019-04-01 16:17 · Score: 2
  
  No, he is treating the meaning of a term as semantics. You keep using the term "loss leader" and I know it doesn't mean what you think it means.
  It's pretty straightforward, a loss leader is when you sell something AT A LOSS in order to lead people to your profitable items. Microsoft sold the XBOX at a loss for years to lead people toward the licensed content they made money on. That is a loss leader. Walmart operated their own grocery at cost (which is a net loss) and sometimes even a gross loss to undercut competition's prices until they drove most competing grocers out of the market. That is a loss leader.
  Some store selling something for a slightly lower net profit than could get is not a loss. That is just a sale. Sale items are not loss leaders unless they are actually taking a loss on them. How are you supposed to discuss the economic principle if you don't use the correct term? The same economics don't come into play if you don't, you know, have to offset the LOSS.
14. Re:Loss leaders are a key factor by Hognoxious · 2019-04-01 17:40 · Score: 1
  
  I've made my own pickled sprouts before and I'm not even a hipster!
  
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  Confucius say, "Find worm in apple - bad. Find half a worm - worse."
15. Re:Loss leaders are a key factor by AmiMoJo · 2019-04-02 02:44 · Score: 1
  
  One of the reasons that independent shops have cheaper produce is that they have lower cosmetic standards. Chain supermarkets demand uniform look and size to their fresh produce and so a lot gets rejected. Other shops buy it, and as long as you don't mind mixed size potatoes or the odd bruise on our fruit they are significantly cheaper.
  
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16. Re:Loss leaders are a key factor by tlhIngan · 2019-04-02 04:50 · Score: 1
  
  The only vegetable you find in mainstream stores that they lack is brussel sprouts. The Asians and Hispanics have enough sense to realize that when God created brussel sprouts He was JOKING. They were never meant to be taken seriously and eaten as food.
  Then you're cooking them wrong. (Boiling them is a bad idea)
  Brussels sprouts can be made to be extremely tasty and delicious when prepared properly (i.e., you properly handle the bitterness). I know, because I've grown up hating them because all I've had were always prepared incorrectly. But properly prepared, not only are they not bitter, but they've got a great crunch and taste.
  It also means you generally have to broil or roast them.
My experience is by Snotnose · 2019-04-01 10:15 · Score: 1

They have better quality fruits, veggies, and meat; the prices reflect that and more. But they also assumed they had better quality on everything else, and their prices reflected that as well. It might be well and good to charge 40% extra for 20% better steak, but not for Dole's canned pineapple.

Not to mention, when you got to things like the olive bars, they were way out of line. Charging 40% more for the olives, then another 40% for the labor to make the whatever, yeah. Tasty but, yeah.
Re:Good by Shaitan · 2019-04-01 10:15 · Score: 2

Drive better pricing for everyone? I applaud cuts but the example prices are still about double market rates. They need to cut prices in half again just to be on par.
Re:High cost reality, not image by Shaitan · 2019-04-01 10:17 · Score: 1

$10/pound is easily double the normal market rate and yes, into and beyond butcher territory.
500 out of....? by JustAnotherOldGuy · 2019-04-01 10:20 · Score: 1

So they 'slash' prices on 500 out of what, 10,000 products? Hold on whilst I swoon.
Sorry, that won't convince me. Whole Foods, AKA "Whole Wallet" is an expensive place to shop no matter how much money you spend trying to convince me that it's not.
It isn't known as "Yuppie Central" for nothing. But hey, if you have more money than sense, shop there all day long.

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1. Re: 500 out of....? by JillElf · 2019-04-01 12:37 · Score: 1
  
  In my area we had a lovely little store called Cheese & Stuff, organic groceries, homeopathic remedies, trendy food to go. I liked the groceries if not the to go items. They got bought out by Wild Oats and we were promised that the location would stay open. Gone in no time flat. Didn't cry when Wild Oats got bought out.
Re:Good by Real+Data+Collection · 2019-04-01 10:26 · Score: 1

Where else would beautiful goth lesbian chicks work at?
Was "Whole Foods" ... by fahrbot-bot · 2019-04-01 10:27 · Score: 1

Prices will be reduced by an average of 20 percent on the selected items.

... will now be called "80% Foods".

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Amazon is insufficiently managed. by Futurepower(R) · 2019-04-01 10:27 · Score: 2

Quote from the story: "The report adds that the price cuts are expected to last at least through the end of the year."

I'm guessing that means that the prices will be sneakily raised later.

I've seen a lot of insufficient management on Amazon. There are many misleading items on Amazon. For example, this King Size 100% Cotton Sheet Set was advertised as costing $7.45. On Amazon it says "+ $11.55 shipping". The true cost with shipping is $19. The top reviews say that the sheets are not cotton.

Amazon bought "Whole" Foods and extended its business when Amazon managers are not managing the core business well.
1. Re:Amazon is insufficiently managed. by Rei · 2019-04-01 10:52 · Score: 4, Insightful
  
  It's a common but sneakier technique: you cut prices on "daily staples" but not everything else, because it's mainly the staples that people price shop on. So they look at the price on the bread, milk, etc and see, "That's pretty similar to that other, more downmarket grocery store", and don't notice how much more non-staples cost.
  
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2. Re:Amazon is insufficiently managed. by omnichad · 2019-04-01 11:13 · Score: 1
  
  Well maybe Amazon is going to let other grocery brands sell directly from their Whole Foods stores on a consignment/commission basis.
3. Re:Amazon is insufficiently managed. by Shaitan · 2019-04-01 16:36 · Score: 3, Interesting
  
  "Wow, commenting on a non-Tesla story. Have the shill payments from Musk run dry?"
  Seriously go with a new target, there are so many worthy to troll around here. I've clashed several times with Rei but she is not and has never been a shill. She makes strong and well presented arguments and interjects informative comments regularly. Especially on science and engineering related topics. Or at least she did pretty regularly for the past several years. Hopefully the trolls haven't made her retreat, we'd be worse off for it.
4. Re: Amazon is insufficiently managed. by Anonymous Coward · 2019-04-02 00:04 · Score: 1
  
  With bad generalization and lack of logical thinking that you have, are you really surprised that you're fired? Just re-read your post, man.
5. Re:Amazon is insufficiently managed. by No+Longer+an+AC · 2019-04-02 01:05 · Score: 1
  
  There's a ton of stuff that seems like a good deal on Amazon until you notice that "+ $11.55 shipping"
  You're not supposed to notice that. Dark patterns. Bad, bad, bad. The other thing that's bad - from my point of view as a consumer - is I've bought tons of garbage I wouldn't have otherwise bought if I had to make the effort to go to a brick and mortar store and think about it. It's just click, click, click.
  The impulse purchases are really my problem though as is not noticing the excessive shipping prices on some items. While it's very easy to click, Amazon has never failed to tell me how much I would have to pay before I made that final click to actually purchase something.
6. Re:Amazon is insufficiently managed. by Gojira+Shipi-Taro · 2019-04-02 09:37 · Score: 1
  
  I have prime. Anything priced like that isn't via Prime. I exclude those from my search. I'm not paying a fucking cent for shipping. Not available via Prime? Not buying it. Full stop.
  For me, many Brick and Mortar stores are not an option because, as I have no car, many require additional expenditure for Uber/Lyft, or wasting an entire day on the bus, and that's simply not going to happen if I can just order it and have it delivered instead.
  
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Re:Slashdot: news for housewives and senior citize by Impy+the+Impiuos+Imp · 2019-04-01 10:43 · Score: 1, Insightful

Yay! Asparagus Water is only $6 now!

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Re: Good by Type44Q · 2019-04-01 10:49 · Score: 1

Considering what a fucking contradiction that would be, I'd suggest the Land of Oz.
20% margin by manu0601 · 2019-04-01 10:58 · Score: 1

They really had a 20% margin to spare, or this is an April fool's joke?
1. Re:20% margin by Areyoukiddingme · 2019-04-01 12:18 · Score: 2
  
  They really had a 20% margin to spare, or this is an April fool's joke?
  There was a reason they were called Whole Paycheck. They really did have a 20% margin to spare, and then some.
  Unfortunately for them, this is a mistake. They can't move down market without losing the people who shopped there specifically because it was upmarket enough to keep the riff-raff out, and they can't move down market enough to pick up enough riff-raff to make up the difference. Unless they stop selling asparagus water. That'd help.
2. Re:20% margin by JillElf · 2019-04-01 13:00 · Score: 1
  
  Cleaner stores have value. Aisles that aren't blocked with the shit of the day promotional displays have value. Stores with more adults than screaming crotch fruit have value. Location has value. Better delivery than Peapod has value.
  Since I'm buying for one and I already have Prime, Whole Foods delivery rocks. Peapod $60 minimum order, $9.95 delivery fee, plus tip vs. Whole Foods $35 minimum order with a $5 tip and no charge for delivery if I pick a 2 hour window.
  I still shop at the competitors for things Whole Foods doesn't carry so I do have an idea of what prices I'd be paying elsewhere but I have to go out of my way to get there. Buying for one, there is not a big enough difference to stop shopping at a cleaner, more convenient location that has a better delivery service if I need it. If I were trying to feed a family of four I'd be doing most of my shopping at Big Y, Stop & Shop, etc. and driving a minivan.
Re: Good by omnichad · 2019-04-01 11:14 · Score: 1

Australia. Where the toilets flush backwards and cliches are reversed.
Re:so does my grocery store by omnichad · 2019-04-01 11:21 · Score: 1

Walmart does it too. They are not the cheapest for everything.
Re:Slashdot: news for housewives and senior citize by DNS-and-BIND · 2019-04-01 15:04 · Score: 1

How about more bigoted classism against poor people? Because that worked out so well before.

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2 SERIOUS issues: by Futurepower(R) · 2019-04-01 15:20 · Score: 1

1) Amazon is being a partner to fraud! The item being sold is not the item being advertised. There are many, many items like that on Amazon.

2) It is unhealthy to engage in personal attacks, as you did.
Ummmm 2nd Times a Charm? by WindowsStar · 2019-04-01 15:47 · Score: 1

Wait that is what they told everyone when the purchased them. Prices did go down for about a month but then they went right back to full price. So what makes us think the 2nd time will stick?
Another Amazon problem: No longer direct download. by Futurepower(R) · 2019-04-01 17:40 · Score: 2

I bought TurboTax 2018 from Amazon. Then, I discovered that Amazon does NOT allow a direct download. It is necessary to download and install an Amazon program, and then use that to download what you have bought. So, Amazon has apparently arranged control over customer's computers!

I will ask the TurboTax company for the SHA-256 of TurboTax 2018.

In the future, I will be FAR more careful about buying from Amazon.
Amazon increased prices, and then decreased them? by Futurepower(R) · 2019-04-01 20:42 · Score: 1

Under Amazon, Whole Foods prices were expected to decrease. Instead, they're rising. (Mar 1, 2019)

So, Amazon increased prices, and then decreased them, but reported only the decrease?
Don't shop at Amazon by DogDude · 2019-04-01 23:29 · Score: 1

I used to go to Whole Foods regularly. But, since I don't shop at Amazon, I haven't gone since the acquisition. Luckily, we have a Fresh Market near us for all of the special things that Whole Foods had.

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1. Re:Don't shop at Amazon by DogDude · 2019-04-02 01:18 · Score: 1
  
  Personal decision. I'm in retail. I don't shop with my competition.
  
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2. Re:Don't shop at Amazon by psergiu · 2019-04-02 01:52 · Score: 1
  
  For me it was the other way around - avid Amazon Shopper.
  Went to Whole Foods last month - all the reduced prices are ONLY available for Amazon Prime members - else everything is full price.
  All the banners in the store said that.
  Ok - i said to the cashier - i'm a Prime Member - give me the discounts.
  No - she said - you need to have "THE APP"
  Long story short - nobody in the store (like 3 employees in total) was able to get "THE APP" to show the magical QR code - so i ended up paying full price.
  Turns out that if you have anything in your Amazon shopping cart, you need to purchase that before you're shown the magical Whole Foods QC code.
  
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3. Re:Don't shop at Amazon by neo-mkrey · 2019-04-02 02:00 · Score: 1
  
  Good for you. I have never gone to Whole Foods, nor do I plan to, even though I am a Prime member.
1) That would be sneaky. 2) No "little text link". by Futurepower(R) · 2019-04-02 01:54 · Score: 1

You said, "I've always been able to directly download without using the Amazon Downloader, it's the little text link right at the bottom of the pop-up asking you to installed the Downloader."

There is NO "little text link" in the Amazon web page. There was no "pop-up".
Item advertised not delivered. by Futurepower(R) · 2019-04-02 02:01 · Score: 1

"Amazon has never failed to tell me how much I would have to pay..."

I should have emphasized the fact that the item advertised was not the item that was delivered 1st, not 2nd.

There are other abusive practices on Amazon web pages, in my experience.
Re:Good by luis_a_espinal · 2019-04-02 03:09 · Score: 1

Drive better pricing for everyone? I applaud cuts but the example prices are still about double market rates. They need to cut prices in half again just to be on par.
Not necessarily. Whole Foods (WF) is banking on a mission statement: selling products with a given image, customer services and other add-on services. That comes at a premium. They are not just selling veggies like Walmart.
Whether WF is actually living to that mission statement, or whether customers are wise or fool to pay that premium, that's another topic.
For now, it is obvious that WF charged too much for its services (or that customers want something else in addition to those services, for that price tag.) It's also obvious that it can never match Walmart prices (nor it should.)
More importantly, Amazon is using WF as a beach head to advertise and sell its home-oriented products - Prime, Echo/Alexa and what not. So it seems to me that Amazon will do the same thing it did with Amazon Fire and Kindle: sell them at a lost to reach customers that will buy some other stuff using that platform.
So WF will simply be another platform for Amazon in which to sell other services. It has the pockets to sell "in the red" for years while it builds a new customer base.
It is a smart move.
Re:Good by terrycarlino · 2019-04-02 05:04 · Score: 1

Whole Foods has high prices because it's it is an example of the sale of Veblen goods, that is people who shop at WF do so because shopping there has snob effect. The fact that things are overpriced is the reason to shop there.
There is the whole "food at WF is more expensive because it is healthier", But that is generally fake science, because there are no actual studies proving that "organic foods" which only have to meet USDA guidelines are actually healthier. The USDA don't require they be healthier, only that they meet certain criteria in how they are raised, which may or may not be healthier than other practices.
So by lowering prices Amazon might just lose customers, since that would mean that the 'little people" could shop there.