>> The ink is barely dry on the government's approval for Amazon to buy Whole Foods. And the tech giant, Thursday, already announcing plans to shake up the grocery aisle. I'm Conway Gittens in New York, outside of Whole Foods where, starting Monday, shoppers are going to see price cuts on the items that they really come to this supermarket chain for.
Namely, organic fruits, vegetables, grains, meats, and fish, Amazon trying to tackle right away the perception that Whole Food prices are too high, so much so the supermarket chain has gotten the nickname, Whole Paycheck, and according to Amazon, that's just the first step. Other changes soon to come, Amazon Prime members will get additional price discounts and other benefits.
Forget about carrying a little supermarket loyalty card like this one. Amazon Prime is going to be the loyalty program once the in-store technology is in place. Amazon.com users will also start to benefit from the deal. Upscale private labels that consumers had to go to Whole Foods to get soon will show up on Amazon's websites and its food delivery apps.
And with Whole Foods located in urban centers around the country, it's a no brainer. Amazon lockers will show up so you can order online and pick it up in store. To be clear, ever since Amazon announced this $13.7 billion acquisition of Whole Foods, analysts have been speculating that these changes would come but that’s not stopping Wall Street from holding a clearance sale on supermarket chains and food suppliers.
Oddly enough, investors still are not sure how much Whole Foods is going to eat away at Amazon’s profits and so Amazon's shares were down as well.