Are Amazon’s Price Cuts as Good as Advertised?

Is this enough to make you check out the grocery store?

Coming Soon
Total Votes : 13

Scroll down to see how people across America voted.

Since Amazon acquired Whole Foods back in 2017 for a reported $13.7 billion, they immediately worked to change up the brand’s reputation of being too expensive (which jokingly earned them the “Whole Paycheck” nickname) by slashing prices.

And they used it as a chance to also push their Prime members towards Whole Foods via weekly rotating specials on a handful of products and an additional 10% off sale items for Prime members, which went into effect about ten months ago.

According to a recent survey by Wolfe Research, only around 18% of Prime members shop at Whole Foods at least once per month and just under three-quarters of members say they rarely or never buy from Whole Foods.

This is the third time Amazon has cut prices in the last two years, with the most recent one going into effect on April 3. It includes 20% off on hundreds of products across the store- focusing on produce- and an additional 10% off on sale items for Amazon Prime members. And Prime members in different metropolitan areas can get free delivery with orders of at least $35.

A significant reason for the price cuts is that the organic grocer does not have the market differentiation it once had, as organic, fresh, natural, etc. have become mainstream in recent years. And contrary to what Amazon has publicly stated, the price cuts have not been as good as advertised, according to customers and data.

“There is no benefit whatsoever,” said Claudia Cukrov, an Amazon Prime member who shops at a Whole Foods store in Brooklyn, New York, on a near-daily basis.

“They are building a full consumer profile on us in the guise of a discount,” she told Business Insider.

“I was scanning it every time, but it wasn’t worth the under $1 savings,” frequent customer Spencer Somers told Business Insider. “I know how data collection works. They want to look at my receipt and all the stuff I bought, so if that’s not worth a good amount of savings, then it’s not worth me giving to them.”

These are just a couple among a boatload of complaints you can find on social media about Amazon’s price cuts. And before the most recent price cuts, Amazon had raised prices at Whole Foods in previous months, rolling back on their initial price cuts.

Wall Street Journal reported that some products went from $0.10 to several dollars, and according to Morgan Stanley analyst Vincent Sinisi, prices at Whole Foods were already 15% higher than rival grocers.

“It is now becoming clear that Amazon has pulled back on incremental price cuts,” Sinisi said in a research report on Monday. Instead, they have gone for incremental increases.

The effect of the discounted prices remains to be seen, but it will potentially take more for Whole Foods to shed their current label of being too expensive. You can read more on this story on CNN.


Here’s how people on the Zip app are weighing in on this all over the country!

Is this enough to make you check out the grocery store?

Totals
46% Enticing
54% Still expensive
Males
35% Enticing
65% Still expensive
Females
72% Enticing
28% Still expensive

Enticing

Still expensive


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