The Retail King
Amazon said it would begin slashing prices on grocery items from bananas to baby kale at its new Whole Foods Market unit right away, serving notice that the e-commerce giant plans to move quickly to shake up the supermarket industry with its $13.7 billion acquisition. The announcement Thursday, which sent stocks of traditional grocers into a fresh tailspin, said price changes for staples and more high-end foods would go into effect as soon as the deal closes on Monday. The company also said its Amazon Prime program, which analysts estimate has more than 60 million members, will become Whole Foods’s customer-rewards program. Stocks for six large food retailers, including Kroger and Wal-Mart, lost around $12 billion in value after the announcement. Grocers and investors say they are concerned that Amazon could start a price war.
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Aren’t lower prices good for ALL consumers?
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