At Whole Foods, it’s Day One — of Amazon ownership.
The e-commerce giant celebrated the close of its Whole Foods acquisition with an Amazon Echo display inside the high-end grocery stores and price cuts on produce of as much as 43 percent.
Inside the Whole Foods in Paramus, N.J., a display of Amazon Echo and Echo Dot speakers greeted shoppers as they entered the store. The Echos were flanked by signs that touted “Whole Foods + Amazon” with a “Farm Fresh!” tagline that would make the creators of HBO’s “Silicon Valley” proud.
Last week, Amazon said it would cut the prices of some Whole Foods best-sellers and those discounts were on display on Monday. Amazon reduced the price of Organic Fuji Apples by 43 percent — from $3.49 a pound to $1.99.
Prices of Organic Gala Apples fell 33 percent to $1.99 a pound while non-GMO large eggs were on sale for $2.99, down from $3.49. Discounts on rotisseries chickens — which weren’t yet on display at 8 am ET — ranged from 11 percent to 29 percent.
The pricing strategy of discounting best-sellers is not new to Amazon. The company has been known to price most aggressively on popular items, so it builds a reputation of having the lowest prices. This allows it to make margin on long-tail items if it so chooses.
It’ll be interesting to watch how much of the price reductions Amazon absorbs versus passing on to suppliers.