Amazon.com, Inc. (NASDAQ: AMZN) and Whole Foods announced a new set of discounts for exclusive Prime Members including price cuts on Thanksgiving products such as turkeys as well as other in house Organic 365 items including ones from partnered organic brands. Prime Members can now get a price deal of $3.49/pound for turkeys while receiving an additional 50 cent discount. Whole Foods’ 365 line products such as chicken breasts, sweet potatoes, shrimp, etc. have price reductions as well including other partner brands like Organic Valley, Eden Foods, Pacific Foods, Lundberg Family Farms, and Tom’s of Maine.
Price cuts at Whole Foods have raised many concerns that cheaper prices would lead to further struggles that American grocery chains are already facing in order to stay competitive with Amazon and Walmart. Other companies’ shares such as Costco and Kroger have dropped between 1% to 2% following Amazon’s announcement. However, prices at Whole Foods are still higher than most grocery stores due to an up market clientele.
“These are the latest new lower prices in our ongoing integration and innovation with Amazon, and we’re just getting started,” said John Mackey, Whole Foods Market co-founder and CEO. “In the few months we’ve been working together, our partnership has proven to be a great fit. We’ll continue to work closely together to ensure we’re consistently surprising and delighting our customers while moving toward our goal of reaching more people with Whole Foods Market’s high-quality, natural, and organic food.”