Amazon's $13.7 billion purchase of Whole Foods Market[1] will be finalised Monday, and shoppers will see an immediate markdown in prices on a number of items, including salmon, avocados, baby kale and almond butter, as the tech giant looks to shake up the grocery business.
Amazon[2] and Whole Foods[3] announced the news on Thursday.
"The two companies will together pursue the vision of making Whole Foods Market's high-quality, natural and organic food affordable for everyone," they said in a joint statement. "Whole Foods Market will offer lower prices starting Monday on a selection of best-selling grocery staples across its stores, with more to come."
Amazon said it will continue to lower prices at Whole Food stores and will eventually offer special discounts and in-store benefits to Amazon Prime members. (Jeff Bezos, the founder and chief executive of Amazon, owns The Washington Post.)
Other foods that will be cheaper beginning next week: Bananas, eggs, ground beef, rotisserie chicken, butter and apples.
"Everybody should be able to eat Whole Foods Market quality - we will lower prices without compromising Whole Foods Market's long-held commitment to the highest standards," Jeff Wilke, chief executive of Amazon Worldwide Consumer, said in a statement. "There is significant work and opportunity ahead, and we're thrilled to get started."
Analysts said the slashing of prices was an obvious move. Whole Foods - nicknamed "whole paycheck" in some circles - has long struggled to shed its reputation as a pricey alternative to other supermarket chains. The company's prices are about 15 percent higher than at the average grocery store, according to Morgan Stanley.
"Amazon is playing to its strengths here, said Michelle Grant, head of retailing at Euromonitor International, a London-based market...