E-commerce giant is pushing to spur sales and change grocer’s high-cost image in competitive grocery market
Amazon Inc. is officially trying to cut prices on many Whole Foods items in store this week. The prices in Whole Foods have been high because of the organic food they provide and because of this, Amazon wants to reduce the prices so they can start competing with the grocery products in Walmart Inc. and others. In the article, the author tells us, "...since Amazon bought the grocer for nearly $14 billion in 2017...Prices will be reduced by an average of 20% on select items throughout the store." (Hadon). This is a major reduction in prices considering Whole Foods' high prices. Many don't go shopping at Whole Foods because to shop there, it requires a "Whole Paycheck". Amazon want to keep their reputation for low prices, so cutting prices down is the first step of doing so.
Price Slice
Amazon is set to drop prices on hundreds of items at Whole Foods stores this week.
Amazon also said, "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." (Hadon). Amazon is not only focusing on their new customers but their existing customers as well by giving them extra discounts. This tactic can bring new customers to become Prime members.
This is a good marketing plan because Amazon's essential goal is to bring more customers to buy from them and lowering prices is a great step. Amazon is already known for their low prices so cutting prices in groceries is going to draw more customers in. People who shop at Whole Foods would have to spend a "Whole Paycheck" in order to get their groceries but now with the cut in prices, anyone can shop there. This plan will get publicity because of the cut in prices with groceries. Not a lot of companies do a cut in prices this low so the publicity will bring in even more customers.
I choose this article because I am a Amazon Prime member so when I heard that the company was going to cut prices on groceries I was surprised. Whole Foods is so expensive to shop at but now since the prices have been cut, I might reconsider shopping there.
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https://www.wsj.com/articles/amazon-cuts-more-prices-at-whole-foods-11554146071?mod=hp_lead_pos2&ns=prod/accounts-wsj
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