Do not believe the hype about Amazon's "savings" at Whole Foods



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Whole Foods buyers may think they have been paying less for kale, organic milk, blackberries and buffalo fillets since Amazon bought this expensive grocer more than a year ago, but they are not really, according to a new report.

According to the report, despite Amazon's hype, prices in the 490 Whole Foods stores across the country – even after shoppers reduced their cash purchases for premium discount – dropped by just 1.54 percent. dollar.

Customers could be forgiven for thinking that prices have been reduced – as Whole Foods signs post signs saying, "The first members save even more.

"A year ago, most people thought that Whole Foods' prices would drop by 15 percent," said Chuck Grom, an analyst at Gordon Haskett, who has been tracking prices at Whole Foods since August 2017, just before Amazon closed deal

According to his research, Amazon Prime members who purchased 108 items just before the closure of Jeff Bezos' e-commerce company in 2017 would have spent $ 409.37.

On August 27, the same basket of goods cost $ 407.83. – or only $ 1.54 less, Grom wrote in his report.

But to save $ 1.54, the customer had to pay the annual membership fee of $ 119.

At a Whole Foods Market grocery store in San Ramon, a sign announces new discounts for Amazon Prime members.
At a Whole Foods Market grocery store in San Ramon, a sign announces new discounts for Amazon Prime members.Getty Images

Prices for the vast majority of items, ranging from iced tea to flavored waters, breads and muffins, yogurts, produce, meats and snacks and condiments remained unchanged three days before Amazon consumes Whole Foods, writes Grom.

"I think that Amazon was trying to create an impression of lowering prices, but they have not been," Grom said.

A pack of 10 ounces of frozen blueberries, for example, cost $ 3.99 before and after closing the deal while the prices of a Honest tea bottle at $ 1.49 and a bar 8 oz. pure Irish butter was also unchanged.

While some items like a 12-ounce box of Cheerios dropped from $ 1 to $ 2.99, other items, such as a 16-ounce shredded cheddar cheese pack, increased by 12.5 percent at 4.49 dollars.

Just days after the mega-market closed on August 24, 2017, Amazon started lowering prices on a select group of products, including avocados, bananas, farmed salmon, brown eggs, and more. basic products.

There was a media frenzy around lower prices with experts predicting that Whole Foods could give up its nickname "paycheck" as bananas fell from 30 cents a pound to 49 cents, Hass's avocados fell by 1, $ 50 each at $ 1.49 costs 30 cents less or $ 3.99 for a dozen.

"Amazon wanted to make a statement to consumers so they understand that they would get lower prices at Whole Foods at all levels," said Dan Glickberg of Rodeo CPG's food consulting firm.

But the reality is that the discounts are selective and mainly target the members of Amazon Prime.

"Amazon is a master in storytelling, even when the reality is very different," said David Bishop, a partner at Brick Meets Click, a food and retail consulting firm.

Non-premium customers pay even more for shopping at Whole Foods, Grom said. Prices were up 2.3% for branded items and 0.3% for Whole Foods' private label.

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