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Whole Foods Prices Rise After Amazon Acquisition

Whole Foods Prices Rise After Amazon Acquisition

Tuesday, December 5th, 2017

After highly-publicized price-cuts following the Amazon acquisition that helped lure in new customers, Whole Foods’ prices are back on the rise, according to analysis by the research firm Gordon Haskett. Price checking over 110 items at a Whole Foods store in Princeton, New Jersey, Gordon Haskett found that the average price increase on each item was about 1.6%, according to a Business Insider report.

Chuck Grom, Senior Analyst, Gordon Haskett

“The findings are surprising, given the myriad of positive press around Amazon’s price cuts at Whole Foods since the acquisition. Whole Foods will have to keep offering lower prices if it wants to keep new shoppers around,” wrote Gordon Haskett analyst Chuck Grom, according to the source.

The current rise puts prices back to almost the same numbers they were at before the Amazon acquisition, with prices just 1.1% lower than what they were.

Whole Foods storefront

While most of the latest price increases affected dry, packaged goods, the firm also reported there were some price cuts in produce and dairy. Their findings include:

  • Prices of produce fell 4.9%
  • Prices of snack foods rose 5.2%
  • Prices of dry grocery rose 2.5%
  • Prices of beverages and bakery rose 1.3% each
  • Prices of frozen goods rose 1.3%

Will Amazon continue to keep Whole Foods prices low in order to maintain customers, or are prices truly back on the rise? Deli Market News will continue to report.

Whole FoodsAmazon

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