No More 'Whole Paycheck?' Amazon To Lower Whole Foods Prices

SEATTLE, WA — In anticipation of Amazon's takeover of Whole Foods, the two companies announced Thursday that Whole Foods would begin to lower prices to make "natural and organic food affordable for everyone." The companies jointly announced that Whole Foods would begin cutting prices as soon as Monday.

“We’re determined to make healthy and organic food affordable for everyone. 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,” AmazonWorldwide Consumer CEO Jeff Wilke said in a press release.

What can you expect in terms of lower prices Monday? Whole Foods will first reduce prices on organic bananas, avocados, large brown eggs, salmon and tilapia, baby kale, baby lettuce, ground beef, almond butter, apples and organic rotisserie chickens.

Amazon To Slash Prices At Whole Foods; Competitors Are Scared

Whole Foods has long had a reputation for being pricey. The phrase "Whole Foods, whole paycheck," emerged as the 39-year-old grocery chain began to expand across the U.S. in the early 2000s.

Last year, Whole Foods began opening new lower-cost 365 By Whole Foods stores in an attempt to lure millennial shoppers. The stores sell Whole Foods 365 house brand and offers a rewards program. There are 14 365 stores in five states with at least seven more set to open in the coming months.

As an additional discount, Amazon Prime members will eventually get access to special deals. The two companies first have to integrate Whole Foods' point-of-sale system with the Prime system.

See Also: Amazon Has Cleared A Hurdle In Its Acquisition Of Whole Foods

On Wednesday, the Federal Trade Commission said it would allow Amazon to buy Whole Foods for $13.7 billion. The Amazon purchase was first announced in June, and the two companies expect the deal to close by the end of 2017. Whole Foods founder John Mackey will remain CEO of the company, and its headquarters will stay in Austin, Texas.

The announcement of lower Whole Foods prices took an immediate toll on other national grocery chains. The Kroger stock dropped sharply, trading Thursday afternoon at close to $21, a one-year low. Ahold Delhaize, the company that owns the Stop & Shop chain, also dropped. Wal-Mart stock also dropped Thursday afternoon.

Amazon stock was also down Thursday afternoon, however. As of 3:45 p.m. EST Thursday, Amazon was trading at about $953 per share compared to the beginning of the day at $957.

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