Recently, Amazon has managed to seal the deal with Whole Foods. As a result, we will start to see Echo Dot and Amazon Echo devices in all the Whole Foods retail stores. But this is not the major benefit received from the Amazon acquisition. In fact, the best thing here is that there will be more retail jobs, not to mention that price cuts are already in the grocery stores.
What type of price cuts can you expect? Well, many important foods are getting a much better price, although the cost of other items remains untouched. For example, bananas cost around 49 cents a pound, a much better price when compared to 79 cents a pound. In fact, even the organic bananas are 69 cents a pound now.
As we mentioned above, there will be plenty of retail sales in the Whole Foods stores, but the idea here is that you will get lower prices on a specific selection of best seller staples across all stores. So, you will have better prices for organic brown eggs, avocados, organic baby lettuce and baby kale, lean ground beef, crunchy almond butter, organic rotisserie chicken and tilapia or salmon.
How does this help Amazon?
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If you read any retail blog, then you already know that Amazon is already one of the most biggest and best stores in the US. That being said, they didn’t tackle the grocery market as of yet, so their Whole Foods acquisition does make a lot of sense. Since Amazon tries to continually expand to new horizons, it does make sense to enter the grocery market.
But why do they want to do that? Well, they have all the resources needed to tackle this market and get the results they want. But the best thing for them is that they work closely with many farmers and trading companies in the US, so getting the best grocery prices is not that hard for them.
Obviously, this will make farmers and grocery companies to lower their pricing. As a result, you will have better prices for all your groceries, which is something that helps the consumer.
What about selling Amazon devices in the Whole Foods store?
Even if you won’t expect to acquire electronics in a grocery store, the reality is that selling such devices here does make sense. There are plenty of people that don’t want to visit a hypermarket or supermarket to get electronics, so this type of move does come in handy.
Analysts state that Amazon does have the power to cut the grocery prices quite a bit. But while they can do that for a limited time, it’s pretty hard to figure out whether they will be able to keep these prices low for the long term. Plus, it’s all about getting a good profit, and keeping the prices way too low may cut most of the Whole Foods operating profit.
Still, the $13.7 billion acquisition of Whole Foods does make a lot of sense for Amazon. And, at the end of the day, customers are the ones that benefit from all of this, since they can get plenty of foods up to 50% cheaper. Whether Amazon will manage to make some drastic changes in the market and lower the prices, that remains to be seen, but even so, the future seems bright for the company on this particular market!
