Thursday, 31 August 2017 14:00 Written by Staff
Published in Blog

Amazon Turning Whole Foods to EDLP Model?

At least let the ink dry before you start changing everything.  Jeff Bezos channeled his inner Sam Walton on the first day of officially owning Whole Foods by slashing prices as much as 43%.  As reported by Bloomberg, the Amazon crew wasted no time in re-positioning John Mackey's empire he started 37 years ago.  Is this new pricing model here to stay, or just an attempt at grabbing some headlines?  For many Americans, the barrier to entry to Whole Foods was not selection, but price.  If he plans on competing with Walmart, or even HEB and Aldi's of the world, he better pack a $14 sashimi lunch, beacuse it is going to take a while.  

Is Whole Foods expensive?  Absolutely.  But, they have carved out a niche in the marketplace that expects a certain quality and is not afraid to pay for it.  Whole Foods shoppers almost wear it like a badge of honor to pay high prices.  They walk out of the store, heads held high, with their two bags of food they just dropped 60 bucks on.  Can't wait to see what the end game is with Amazon's purchase of Whole Foods.  Should Amazon keep tinkering with the Whole Foods model, or let it be?  You can't be something you are not.  Walmart learned that in apparel when they moved their office to NYC and wanted to carry "higher-end" clothing.  Didn't work.  Back to socks, underwear, and more cargo shorts than you can shake a stick at.