Thursday, September 7, 2017
Jeff Bezos will have to trade in his potato peeler for a meat cleaver if he wants to fight a price war with Wal-Mart Stores Inc., a Bloomberg report suggests.
Despite price reductions on kale, bananas and more after Amazon.com Inc. officially took control of Whole Foods last week, the grocer has long touted the superior quality of its food and retains an upscale vibe. So for the time being, shoppers are likely to find better deals elsewhere, including at industry giants Wal-Mart and Kroger Co., the news report says. In a survey of 18 items, Bloomberg found Whole Foods was 50 per cent more pricey on average than Walmart.
Now that the $13.7-billion Amazon-Whole Foods deal is complete, attention has turned to how the e-commerce giant will operate its newly acquired grocery stores as it tries to convince more shoppers to buy food online. Fears of a profit-crushing price war have weighed on stocks in the cutthroat grocery industry, which survives on famously thin margins, Bloomberg says.