NEW YORK (CBS/AP) – With Amazon set to complete its $13.7 billion takeover of Whole Foods, both companies have announced that prices will immediately drop on the grocery’s stores best-selling food staples.
Here’s what will be cheaper starting Monday:
-lean ground beef
Amazon and Whole Foods say there will be “much more to come” in terms of savings as the grocery store tries to shed the “Whole Paycheck” reputation.
Looking ahead, Amazon hopes to give members of its Prime program special savings and other in-store benefits.
It’s an “opening salvo” in the grocery wars, said Neil Saunders, managing director of GlobalData Retail, and shares of other supermarkets fell sharply on the news.
Financial analysts say one challenge for Amazon is how to cut prices and broaden Whole Foods’ appeal without hurting the chain’s image for quality food. It’s a tricky balance that Amazon itself seemed to acknowledge in its statement.
“Everybody should be able to eat Whole Foods Market quality — we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” said Jeff Wilke, CEO of AmazonWorldwide Consumer.
(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)