Bananas drop 38 percent and other dramatic price drops at Whole Foods
Grocery shoppers at Whole Foods have seen prices on some groceries drop as much as 43 percent since the chain’s purchase by Amazon was finalized this week.
Salmon dropped by one-third to just under $10 per pound. Bananas are down 38 percent to 49 cents a pound. Organic gala apples? They’re a full dollar cheaper at $1.99 per pound.
More price slashes have been promised since Amazon purchased Whole Foods for $13.7 billion.
Comparison of a wider range of foods, however, shows an overall 1.2 percent drop in prices.
The New York Times comparison shopped five foods, from organic unsalted butter to avocados, and saved 14 percent.
The cuts are in line with Amazon’s business plan to attract customers and build loyalty. The online behemoth has pockets deep enough to sacrifice short-term profit for long-term market gains. Amazon’s biggest competition for grocery share is Walmart.
Industry analysts say a price war could prove devastating for grocers already operating on a thin edge. Whole Foods has previously been known to charge higher prices in general than other chains.
Amazon has pledged that its lower prices will not compromise Whole Foods’ commitment to quality.
The company has also said it will offer discounts and other benefits to Amazon Prime members.
Amazon’s purchase of Whole Foods was approved by the Federal Trade Commission and Whole Foods shareholders.