OnDemand WTP Pricing Research

Price of a Whole Foods basket of groceries has barely budged since Amazon took over | MarketWatch

Whole Foods had a high-priced reputation before retailing giant Amazon stepped in. Why hasn’t that changed?

Even with the discounts offered to Amazon.com Inc.’s Prime members, the cost of a $400-plus broad basket of items purchased at Amazon-owned Whole Foods Market only yields $1.50 in savings over prices one year ago, Gordon Haskett Research Advisors found.

Since buying Whole Foods Market in 2017, Amazon AMZN, +1.23% has announced a number of new perks and promotions, particularly for Amazon Prime members, including an additional 10% off Whole Foods sale items and Prime Now delivery in as little as an hour in dozens of cities for Whole Foods grocery purchases.

The Amazon Prime Rewards Visa V, +0.92%   card, introduced in February, also offers 5% back on Whole Foods purchases.

But one expected perk — a notable decrease in prices considering Amazon’s vast network — has not come to pass, according to analysts led by Chuck Grom.

“While deeper promotional pricing on key items, incremental savings… and increased convenience for Prime Members in the first year under Amazon ownership have caught our eye as consumers, the reality is that Whole Foods pricing on a broad basket has remained largely unchanged,” the Gordon Haskett note said.

Read complete article here:

Price of a Whole Foods basket of groceries has barely budged since Amazon took over – MarketWatch.

Post a Comment

WP-SpamFree by Pole Position Marketing