Amazon.com Inc. spent its first day as the owner of a brick-and-mortar grocery chain cutting prices at Whole Foods Market as much as 43 percent.
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The tech giant's $13.7 billion purchase of Whole Foods has sent shock waves through the already changing $800 billion supermarket industry. The wedding between Amazon and the upscale grocery promises to upend the way customers shop for groceries. Cutting prices at the chain with such an entrenched reputation for high cost that its nickname is Whole Paycheck is a sign that Amazon is serious about taking on competitors such as Wal-Mart Stores Inc., Kroger Co. and Costco Wholesale Corp."Price was the largest barrier to Whole Foods' customers," said Mark Baum, a senior vice president at the Food Marketing Institute, an industry group. "Amazon has demonstrated that it is willing to invest to dominate the categories that it decides to compete in. Food retailers of all sizes need to look really hard at their pricing strategies, and maybe find some funding sources to build a war chest."
"Whole Paycheck" is now "Half Paycheck."
(Score: 2) by MostCynical on Wednesday August 30 2017, @07:45AM
It's a race to the bottom - which ever company has th deepest pockets/cash reserves wins, as they can hold out making no (losing) money the longest.
If the suppliers are on 90 day (or longer, poor buggers) accounts, and the cash registers are ringing, then, even at the reduced income, they company will still be meeting its loan repayments..
"I guess once you start doubting, there's no end to it." -Batou, Ghost in the Shell: Stand Alone Complex