{"id":4451,"date":"2018-05-17T20:37:59","date_gmt":"2018-05-17T20:37:59","guid":{"rendered":"http:\/\/noti-america.com\/site\/alemania\/?p=4451"},"modified":"2018-05-17T20:37:59","modified_gmt":"2018-05-17T20:37:59","slug":"amazon-cuts-whole-foods-prices-for-prime-members-in-new-grocery-showdown","status":"publish","type":"post","link":"https:\/\/noti-america.com\/site\/principal\/2018\/05\/17\/amazon-cuts-whole-foods-prices-for-prime-members-in-new-grocery-showdown\/","title":{"rendered":"Amazon cuts Whole Foods prices for Prime members in new grocery showdown"},"content":{"rendered":"
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Source (Reuters)<\/strong> <\/em><\/p>\n

Amazon.com Inc (AMZN.O<\/a><\/span>) and Whole Foods Market are making a surgical strike in the already brutal grocery price war.<\/p>\n

On Wednesday, Whole Foods debuted a much-anticipated loyalty program that offers special discounts to Prime customers, including 10 percent off hundreds of sale items and rotating weekly specials such as $10 per pound off wild-caught halibut steaks.<\/p>\n

Those perks are available now in Florida and will roll out to all other stores starting this summer. Amazon previously announced free two-hour delivery from Whole Foods stores for members of Prime, its subscription club with fast shipping and video streaming.<\/p>\n

The new loyalty strategy will test whether Amazon\u2019s $13.7 billion deal for Whole Foods brings much-feared disruption and an intensified price war to the $800 billion U.S. grocery industry dominated by Walmart Inc (WMT.N<\/a><\/span>) and Kroger Co (KR.N<\/a><\/span>).<\/p>\n

Whole Foods, with 463 U.S. stores and roughly 1 percent share of the fragmented U.S. grocery market, has gained momentum since the Amazon merger last summer, Whole Foods co-founder and Chief Executive John Mackey told Reuters.<\/p>\n

Closely watched basket size – the number of items purchased per transaction – has grown since the merger, said Mackey. He declined to offer specifics.<\/p>\n

Mackey is betting on Prime to convince shoppers wary of its \u201cWhole Paycheck\u201d reputation that it is an affordable option for more of their purchases.<\/p>\n

The new perks could make Whole Foods cheaper than conventional grocers for about 8 million of its customers who already subscribe to Amazon Prime, according to Morgan Stanley analysts.<\/p>\n

Prime members scan an app or input their phone numbers at checkout to receive the discounts.<\/p>\n

Still, Philadelphia-area Whole Foods shopper and Prime member Heather Kincade, 46, is going to need convincing.<\/p>\n

While Whole Foods\u2019 prices on staples like rotisserie chicken, bananas and avocados have come down, she still thinks some every day items are prohibitively expensive. \u201cIf I start buying dish soap and other things there, I will have hit the big time,\u201d she said.<\/p>\n

LOWER MARGINS<\/h3>\n

In Amazon, Whole Foods has found an owner that is famously comfortable spending away profits on new businesses or on lower prices.<\/p>\n

\u201cGiven how important it is for Amazon to provide value for their customers, and customers value lower prices, I would think they\u2019d be comfortable operating Whole Foods at a lower margin while experimenting with the operating model,\u201d said Tom Furphy, former vice president of consumables and AmazonFresh, and now chief executive of Consumer Equity Partners.<\/p>\n

Mackey said more rounds of cuts are in the cards.<\/p>\n

\u201cWhole Foods is going to become more and more and more competitive,\u201d said Mackey, who declined to detail how much of a haircut its suppliers will take.<\/p>\n

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Hain Celestial Group, one of Whole Foods\u2019 biggest suppliers, says a lower profit margin may be worth it.<\/p>\n

\u201cI never mind giving up margin for growth,\u201d Hain CEO Irwin Simon told Reuters.<\/p>\n

Small grocers, who still control a hefty portion of U.S. sales, typically have razor-thin margins. They are under increasing pressure as German discounters Aldi and Lidl lower prices, too.<\/p>\n

Walmart said it will keep offering everyday low prices to all shoppers at its more than 5,000 U.S. stores.<\/p>\n

Kroger Co, the largest U.S. supermarket operator with roughly 2,800 stores, uses shopper data to personalize loyalty discounts.<\/p>\n

CEO Rodney McMullen told Reuters earlier this month that the chain\u2019s prices will \u201cabsolutely\u201d be lower than Whole Foods on the typical shopper\u2019s basket of about 50 items per week.<\/p>\n

\u201cIt\u2019s easy to beat somebody on four or five items,\u201d said McMullen.<\/p>\n

Kroger tested an annual grocery delivery subscription but tabled it due to insufficient demand, he added.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Source (Reuters) Amazon.com Inc (AMZN.O) and Whole Foods Market are making a surgical strike in the already brutal grocery price war. On Wednesday, Whole Foods debuted a much-anticipated loyalty program that offers special discounts...<\/p>\n","protected":false},"author":33,"featured_media":4452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10219548024599422_1632221337088128":"","twitter_242054905_242054905":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[9],"tags":[],"class_list":["post-4451","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tecnologia"],"acf":[],"yoast_head":"\nAmazon cuts Whole Foods prices for Prime members in new grocery showdown - Noti-America.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/noti-america.com\/site\/principal\/2018\/05\/17\/amazon-cuts-whole-foods-prices-for-prime-members-in-new-grocery-showdown\/\" \/>\n<meta property=\"og:locale\" content=\"es_ES\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon cuts Whole Foods prices for Prime members in new grocery showdown\" \/>\n<meta property=\"og:description\" content=\"Source (Reuters) Amazon.com Inc (AMZN.O) and Whole Foods Market are making a surgical strike in the already brutal grocery price war. 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