Quote:
Originally Posted by ZodWallop
That's an interesting article. But I'm not sure cutting prices at Whole Foods will really impact other grocery store chains. To me, Whole Foods doesn't really compete with other grocery stores. They seem to be something of an other. Even cutting prices by half or a quarter will still be double the cost for similar items from most other grocery stores.
Cutting prices at Whole Foods too much seems mostly like it would negatively impact Whole Foods, ruining their niche.
I dunno. Maybe my vision is limited.
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No, not limited at all.
All indications are the Amazon is buying WFM to keep as is for at least two more years because what they most want from them in the grocery space is their grocery supply chain and expertise to feed into AmazonFresh expansion.
WFM is netting $500M a year in profits as is. It doesn't need massive retooling in its own space. It does need to improve and expand in the online arena which is something Amazon can supply most effectively.
Me, I think that, other than online, the best way to boost WFM store profits is to dedicate 5-10% of their floor space to Amazon goods and services targeted at their existing customer base. (Kindles, Echoes, Fires, and yes, books.) And, since WMF doesn't already have a customer loyalty program, bringing in Prime is pretty much a given.
Some price cutting (tied to Prime) might make sense. Major across the board cuts don't. Their main challenge is keeping their affluent customers, not going after somebody else's.