by: Elizabeth Balboa, Benzinga Staff Writer
With the blessing of both shareholder bases and the Federal Trade Commission, Amazon will complete its purchase of Whole Foods on Aug. 28, according to a Thursday joint press release.
Amazon will effect immediate changes in Whole Foods operations concurrent with the close: the extension of in-store benefits and special savings to Prime members, the sale of Whole Foods' private label on Amazon platforms, and implemented price cuts on a range of products.
“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, CEO of Amazon Worldwide Consumer said in the press release. "To get started, we're going to lower prices beginning Monday on a selection of best-selling grocery staples, including Whole Trade organic bananas, responsibly-farmed salmon, organic large brown eggs, animal-welfare-rated 85-percent lean ground beef, and more.”
But this, Wilke noted, is just the beginning.
Grocery rivals plunged on the report: Kroger Co KR fell 5.5 percent, Costco Wholesale Corporation COST 3.9 percent, Sprouts Farmers Market Inc SFM 3.6 percent, Ingles Markets, Incorporated IMKTA 2.2 percent and Wal-Mart Stores Inc WMT 2 percent.
The same players had fallen on initial news of the deal on June 16.
What To Know
- Whole Foods Market will offer lower prices on a selection of best-selling staples across its stores, with more to come.
- After certain technical integration is complete, Amazon Prime will become Whole Foods' customer rewards program, providing Prime members with special savings and other in-store benefits.
- Whole Foods' private label products—including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch—will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
- Amazon Lockers will be available in select Whole Foods stores. Customers can have products shipped from Amazon.com to their local Whole Foods store for pick up or send returns back to Amazon during a trip to the store.
Image: ChadPerez49 (Own work), via Wikimedia Commons
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