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Amazon's Whole Foods Price Cuts Brought 25% Jump in Shoppers
- mikeash 9y agoWill it last? When I heard about the price cuts, I went in to check it out. I pretty much never shop there, so I'm part of that 25% jump. In the end I saw no real difference and no reason to return.
- sumoboy 9y agoAmazon buys this companies and they never really seem to work out over time, eg. zappos, diapers. Major grocery chains will just get smarter and more aggressive with pricing.
- emodendroket 9y agoI was not aware Zappos was not considered a success.
- sumoboy 9y agoZappos is a huge success for customer service and returns, but they've been losing marketshare for years. Amazon just wants to show high revenue numbers and mask operating losses. Don't think that Walmart with acquisition of shoebuy is going to sit around and not steal revenue. Too many people think if Amazon buys a company it's going to turn into gold, the only thing that is goldmine is AWS. Whole Foods won't be immune from stiff competition going forward, everybody knows there brand is expensive regardless if they drop prices 25%.
- GCA10 9y agoZappos's CEO gets more eccentric all the time, and the site's search function could use updating, but the selection remains excellent and service is first-rate. We still use them. Other Amazon acquisitions such as IMDB, Goodreads and Audible seem to be humming along. Kiva, now Amazon Robots, is crushing it. (Little joke there.)
- brogrammernot 9y agoI have to imagine this is part of a larger play for Amazon Fresh. Physical locations around the US acting as mini logistic centers for their Amazon Fresh drivers to pick up orders and/or compile orders. I can't really imagine Amazon wanting to get into the brick and mortar business, especially in Grocery stores.
- vkou 9y agoThat's probably because (As was alluded to in other threads on HN), most of the price cuts came to low-turnover specialty goods. The $8 bottle of lavender water is now $6.
- tinfins 9y agoThat's not true at all - the price cuts were to staples like salmon, avocados, ground beef, milk, eggs, bananas, etc...
- ConceptJunkie 9y agoWhat about Arugula? That's a staple... I used to shop at Whole Foods regularly back when they were Fresh Fields in the mid to late 90s. Now I find them just too expensive. Maybe it's just me, because back then, I was feeding a couple of toddlers and now I'm feeding several large eating machines.
- tinfins 9y agoYeah, I think one of the plastic containers of arugula was $.50 cheaper. But it's the organic one, so it depends on whether you normally buy that kind.
- vkou 9y agoAny price cuts on bread, pork, sausage, potatoes, tilapia, tomatoes, onions, leeks, beets, rice, beans? From the '49 discounts' link in this thread, the answer seems to be 'no'.
- qudat 9y agoTilapia was cut.
- tinfins 9y agoVine-ripened tomatoes were cut by $1/lb at my store (from $2.99 to $1.99). The bulk rices all dropped, but I don't remember by how much. Canned beans were already pretty competitive, don't think any dried ones changed. No change on onions, leeks, beets, pork, or bread that I noticed. Tilapia went down by a couple bucks a pound.
- timcederman 9y agoSomeone counted the number of items with discounts at their local Whole foods and it was only 49. http://www.mouseprint.org/2017/09/04/did-you-fall-for-the-whole-foods-price-cuts-hype/ http://www.mouseprint.org/2017/09/04/did-you-fall-for-the-wh...
- pen2l 9y agoBut the things on discount are the things that everyone gets. Milk, eggs, bananas, etc. I shop at whole foods (it's the only place truly 'near' to me), and the things on discount were just about the things that I always get. So I'm happy, for one. But 50% of stuff I still get from Costco or Trader Joe's (that requires a forty minute drive).
- sjg007 9y agoWhite label Milk, eggs, and some other stuff has always been price competitive at whole foods... Sometimes I found milk cheaper at whole foods than safeway!
- zajd 9y agoAs a milk lover, I find this hard to believe I've never seen a gallon go for above 2.99(if that) at safeway and never seen one below 3.99(if you're lucky) at whole foods
- wahern 9y agoOn milk you may be right. Whole Foods doesn't sell exclusively organic, but they do exclusively sell, e.g., hormone-free products. Whole Foods effectively has a price floor that limits how competitive they can be. I've found milk and eggs to be sometimes slightly cheaper at Safeway, but they're really bottom-of-the-barrel brands and not something I'd buy anyhow. The brand of non-organic eggs I buy is sold by both WF and Safeway, but WF is consistently <= than Safeway, and there's only one or two brands at Safeway that is cheaper. But this is pocket change. For higher-priced things, like meats (ground beef, chicken), I find WF's prices to more than make up the difference. Generally, unless Grocery Outlet has a great deal, we just default to buying meat, eggs, dairy, and vegetables at WF when we can. Unfortunately, WF is less convenient for us than Safeway, so we do regularly shop (and pay more for it) at Safeway if we're pressed for time.
- SilasX 9y agoI'm concerned about whether their infra can handle it -- part of the reason for the higher prices is to throttle the demand to something manageable without the staff they can afford to run the store. Didn't the rush from this overload them? Can they afford to ramp up for long-term lower prices?
- bhhaskin 9y agoThe real question is how long until Amazon starts to raise the prices again? It's a smart PR move if you think about it. Lower prices to get more shoppers in the door and then slowly raise prices to pre sale values. They already know people will gladly pay the higher prices.
- fullshark 9y agoThat's not Amazon's MO, or goal with the Whole Foods purchase. They want to dominate the grocery industry like they dominate the durable goods industry.
- doingmyting 9y agoCompletely agree with this. I'd also add that amazon doesn't just seek to dominate an industry but also to make it difficult for future competitors to enter the space in the first place. Raising prices could in theory create a gap for a future/current competitor to step in.
- bhhaskin 9y agoMaking money is their MO. It comes down to simple supply and demand, and it makes prefect sense to raise their prices slowly overtime.
- BinaryIdiot 9y agoWhile that makes sense in a generic, economic theory, this isn't how Amazon has operated. Ever. So I don't see why you're picking this hill to die on. My money is on Amazon doing what they have always done: compete with wide selections and the cheapest pricing possible while using Whole Foods to bring their Fresh delivery service to far more markets at a higher efficiency.
- gozur88 9y agoI agree with this. It's gotten to the point that when I need something I buy it from Amazon, with the only exception being food. And that last part might change.
- jamestimmins 9y agoAs the article hints, this jump is likely driven in part by the millions of dollars of free advertising Whole Foods received from the news, and not simply because there were price cuts.
- joezydeco 9y agoIf you live in a town with a Whole Foods, you already know it's there. And nothing physically changed to the stores overnight. Announcing a price cut seems way more likely to draw in comparison shoppers to see what cuts were made, and if they compare to people's current regular supermarkets.
- cracell 9y agoSo along that line of thinking, everyone knows the McDonalds is there so there's no reason for McDonalds to ever pay for advertising.
- mey 9y agoMost of that is advertising deals and/or new products.
- fenwick67 9y agoThose deals and products are part of the marketing/advertising, not independent from it.
- zaphirplane 9y agoThe politeness is refreshing compared to slashdot
- joezydeco 9y agoYou're comparing apples and oranges. Say Coca-Cola buys McDonald's Corporation and it makes a splash in the business community and restaurant blogs. Then the new joint company announces that all soft drinks are $0.10 from now on. Traffic spikes 25%. Which of those two events was the cause?
- pbhowmic 9y agoFor what I buy, it is still more expensive than Sprouts. I don't even want to know what these items cost before the price cut.
- CodeWriter23 9y agoI went in last week to pick up a couple of things. The store was extra insane with people. I looked but didn't see anything marked down. My thought as I exited: "suckers".
- yardie 9y agoAnnounced price cuts. We've been in WF before and after the buyout. Didn't see much difference. Still prefer to go to farmers markets and discount grocers like Aldi's.
- deleted 9y ago[deleted]
- ilamont 9y agoI am also an infrequent Whole Foods shopper. Some anecdata to share: I went to Whole Foods the week before the announcement and then again today. I was very sensitive to pricing on the first visit (and, frankly, was pretty surprised at how expensive most things were). On the second visit today, I noticed big drops in the prices of certain items, such as fish, produce, and yogurt. For instance, I don't think there was any fish cheaper than $15/pound before the takeover, yet today Cobo Salmon behind the counter was $10/pound (sale) and shrimp was $12/pound (regular price). It was also possible to buy organic Gala apples for $1.50/pound (sale) and cauliflower at $2.50/head (normal price). It's not as cheap as the "normal" supermarkets in the area, but it's more competitive than before. Of course, these could be seasonal variations -- for instance, apples are in season in New England right now.
- rch 9y agoWas that U.S. shrimp or imported? There are very significant differences in environmental sustainability across the various supply chains for meat, fish, produce, and dairy products.
- ams6110 9y agoSeafood at my local Kroger is almost all labeled "Product of China" which I refuse to buy due to concerns about not only the fishing but also the handling and packing after the catch. Edit: I'm mostly referring to the frozen seafood. Fresh is too expensive for my wallet.
- otp124 9y agoWhat happens during the packaging/handling that couldn't be killed by cooking? Is that where the mercury issue is (I thought tainted water was the bigger issue)?
- tapatio 9y agoThe apples you saw were picked 5-12 months ago. Source: http://www.businessinsider.com/supermarket-apples-10-months-old-2017-4 http://www.businessinsider.com/supermarket-apples-10-months-...
- otakucode 9y agoIt's almost like most people are underpaid and most products overpriced. What a revelation!
- iamleppert 9y agoPeople here are smart enough to realize what this is: a publicity stunt. Even if you have money, shopping at Whole Foods is foolish. Amazon reduced a fraction of the items prices, they are still heavily over-priced, and the food quality for the price is low. Whole Foods is a grocery store that prices it's food high to attract a certain type of consumer. That's all. If you want high quality food, I encourage you to visit a local farmer's market. There is probably one close to you every week, or every other week. There are even larger ones or speciality ones less frequently (monthly). At a farmer's market you'll get high quality produce, fresh that is directly from the farm. All or most of your money will be going to people actually growing or making the food, not a large corporation, food distributor, or Amazon. I really wish we would just ban grocery stores for good and try to go back to this form of food consumerism.
- ng12 9y ago> I really wish we would just ban grocery stores for good and try to go back to this form of food consumerism. I'm sure that'll work out great for people who live in poor communities: https://en.wikipedia.org/wiki/Food_desert https://en.wikipedia.org/wiki/Food_desert
- iamleppert 9y agoIt would help them the most -- getting rid of grocery stores that sell low quality, sugary mass produced foods and going back to local micro farmers markets is in what form of reality a bad thing?
- fish_fan 9y agoMany places don't have local micro farmers markets, and even if they did, groceries sell a LOT of food. Are you sure your local farm and meet demand at an affordable cost? You seem to be reductive.
- flachsechs 9y agoeither those people can't afford locally produced food, or the farmers can't afford to do it at the prices they'd demand. people need affordable supermarkets. this isn't complicated, it's unfortunately just not very profitable to serve these people.
- freyir 9y agoIf Whole Foods becomes anything like Amazon, their locally-sourced grass-fed beef could become commingled meat product from various fly-by-night suppliers that's just "fulfilled by Whole Foods." Amazon's inability or indifference to combatting counterfeit sellers on their website has completely eroded my trust in eating the food they source.
- throwawayjaja1 9y agoI've ordered the natural/grass-fed (not sure if it was locally source, probably not since it is encased in plastic, making it last longer) beef from Amazon Fresh and I'm pretty happy with it (I'm probably not thinking sustainably, sorry) because it doesn't spoil as quickly as the beef I buy from my butcher counter. Side effect is that it is usually less, by weight, than the stuff I buy in person, so I end up eating less, which is just fine. (Steak is, for me, hard to portion into leftovers, it is a mind thing).
- cs702 9y agoCustomers LOVE it when businesses don't make money!
- k_sh 9y agoThat's exactly how free markets work - "Your profit margin is my opportunity".
- Overtonwindow 9y agoI've been trying new diets and focusing on reducing my intake of GMOs, specifically corn. For this I've been shopping at Wegman's quite a bit, avoiding Whole Foods which is closer, because of the prices. This article gives me a little hope WF is getting better. Good food costs money, at least that's what we're told, so I'm happy to see things getting more competitive, at least.
- arbuge 9y agoBut will they stick around?
- bozoUser 9y agoWhat categories did the price cut reflect in. I shop at wholefoods every week and I have not noticed a drop in the prices of fruits, vegetables, milk and neither in the bake/meals section.
- qudat 9y agoThe most cuts I have seen were in the meat/seafood sections. Tilapia was cut for $4-5, ribeye $6, etc.
- eggs_and_avo 9y agoHere's a table of price changes by Bloomberg measured at mid-town Manhattan Whole Foods: https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iu.8ONC0rkkc/v1/-1x-1.png https://assets.bwbx.io/images/users/iqjWHBFdfxIU/iu.8ONC0rkk...
- tinbad 9y agoDoes anyone have any data to back up the price drops? From my anecdotal evidence it seems WF is just as expensive as it was before. I'm sure these price cuts are only on certain products so it would be interesting to know what these are.
- edko 9y agoThey still have ridiculously high prices. For example: a gallon of Crystal Geyser water is $1.50, while in most other places is $1.00. What justifies a 50% premium?
- rukittenme 9y agoI'm one of these people. I'm very price conscious and have always avoided whole foods. But after seeing the price drop, I gave them a try. My bill was a little more than usual. But given the convenience (its next door) and quality I chose to continue shopping there. I've been going regularly for about a month.
- kozikow 9y agoDifferent anecdote: I am not regular whole foods, but went out of curiosity whether there will be any event related to amazon buyout or just check out if there any significant price drops.
- alttab 9y agoSo, supply and demand curve is still relevant it seems.
- elvirs 9y agobecause all news outlets advertised the bs price drops at wholefoods even if a recent article said prices were down by just 1% on average.
- KeepTalking 9y agoI shop at whole foods frequently mainly for fresh produce and dairy. this is largely because of its proximity to my home. My other regular grocery chains are my local mom and pop grocery store who is about 300 feet from my house, Costco and target. I avoid Safeway as far as I can. My observations are 1) my local mom and pop store carries the freshest and cheapest vegetable produce. They are alert to my needs and are doing brisk business with a regular clientele. They source their produce from the central valley ave Sacramento area using a network of independent farms. 2) Costco is great for some produce while making up the true per pound cost for other items e.g. Tomatoes. Additionally I find Costco produce to perish faster. 3) whole foods has dependable produce but at over 50% Mark ups.
- deleted 9y ago[deleted]
- X86BSD 9y agoMy thought about this merger is, if I am HyVee or Price Chopper or whatever your local regional chain supermarket is HOW am I going to survive Amazon? They are past firing across the bow of every grocer in the US, and none of them seem to be moving to survive the Cat 10 hurricane that is Amazon. Few deliver, few have automated inventory with robots, I don't see any of them moving to compete or stem the blood bath that is coming. It reminds me of Palm and its arrogance when Apple entered the mobile phone market.