Amazon Whole Foods
Tom Dougherty, CEO – Stealing Share
29 August 2017
Amazon Whole Foods cut prices 40%?
Amazon is always top of mind with me. The recent acquisition forming Amazon Whole Foods means goods are delivered to your door. Or with its somewhat off-base Amazon Instant Pickup service, it’s hard to keep the retail behemoth out of my noggin.
Amazon remains at the forefront of our our collective consciousness because many of us use it every day. (Especially if you have an Echo or take advantage of its Prime membership.) Now, the Amazon Whole Foods division is offering discounts as high as 40% on select foods for Prime members. That’s a hefty discount. In fact, I think it’s too much a discount.
“Whole Foods remains just one arrow in the Amazon quiver. But the parent brand must be careful it doesn’t turn Whole Foods into Aldi.”
Okay. Hear me out. When you ponder Whole Foods, what comes to mind? For me, it’s expensive but high quality food. “Whole Paycheck” ring a bell? Something needs to change. Whole Foods is not doing all that well, with its stock price falling and revenue remaining flat. So, Amazon did need to reduce prices to buy entry into the grocery market.
Is 40% off too much for the Amazon Whole Foods brand?
But 40%? Amazon figures it can make up the reductions by incorporating new Prime members with those taking advantage of Amazon Fresh.
More importantly, what does this mean for an Amazon Whole Foods rebranding? Whole Foods isn’t a place for the common shopper. It’s a place for shoppers who view themselves as a little more distinguished than the rest. It’s for folks willing to spend a few more dollars for the experience, expertise and what they deem better goods.
I get it. The brand face of Amazon Whole Foods will be different than what “Whole Paycheck” stood for. In fact, Amazon will eventually become the lead brand. (Just watch.) But bargain-basement prices represent something other than Amazon. The brand of Amazon stands for ease of use and (practically) unlimited options.
Whole Foods remains just one arrow in the Amazon quiver. But the parent brand must be careful it doesn’t turn Whole Foods into Aldi.
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