Whole Foods Prices Rise After Amazon Acquisition
AUSTIN, TX – Amazon’s acquisition of Whole Foods was the talk of the town earlier this year, and even more so after price-cuts were highly-publicized, easing the duo’s transition and luring in new customers for the grocer. According to analysis by the research firm Gordon Haskett, however, Whole Foods’ prices are back on the rise. The firm price checked over 110 items at a Whole Foods Store in Princeton, New Jersey, and found that the average price increase of each item was about 1.6 percent, according to a Business Insider report.
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. While most of the latest price increases affected dry, packaged goods, the firm also reported there were some price cuts in fresh produce. 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%
“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 Business Insider.
With Amazon facing off against competitors in a retail stand-off, how will Whole Foods’ increased prices affect its position as current top dog? AndNowUKnow will continue to report.