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Whole Foods has highest prices despite cuts in April: Bank of America | CNBC

Whole Foods still has the highest overall prices among U.S. food retailers, despite the widely publicized discounts the Amazon-owned grocer made in April.

Walmart continues to have lowest overall prices, momentum that will likely be unscathed by Whole Foods’ price cuts, Bank of America Merrill Lynch analysts wrote in a Tuesday report. Kroger narrowed its gap with Walmart with an average premium of 7%, the analysts said. Sprouts Farmers Market had an average premium of 8%, while Whole Foods prices were the highest at 34% above Walmart — a percentage point higher than the previous 3-4 years of studies.

“We continue to believe that Amazon is not having an impact on Walmart’s grocery momentum,” Bank of America analyst Robert Ohmes said.

The Bank of America research was 10 pricing studies in eight different metro areas over the past year. The last of these occurred in May after the price changes went into effect.

“In our most recent price study in Philadelphia, Whole Foods’ basket was still priced at a +39% premium to Walmart. Produce [was] still at a +25% basket premium to Walmart, and center-of-store items at a +58% premium to Walmart,” Ohmes said.

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Whole Foods has highest prices despite cuts in April: Bank of America.

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