Amazon.com may have lowered prices at Whole Foods, but the organic grocer could be dealing with the “whole paycheck” reputation for some time to come.
Whole Foods now boasts lower prices on a number of products that Amazon mentioned in a press release last week, but one analyst didn’t find much change on items not called out specifically by Amazon.
Among Whole Foods items listed in the press release, such as responsibly farmed salmon and organic Fuji apples, RBC Capital Markets analyst discovered that prices were approximately 25% lower after Amazon’s first batch of changes went into effect Monday. But he also looked at about 50 items that weren’t on the list and found that their prices barely budged.
In New York, he writes, price cuts were slightly more pronounced than they were in Austin.
Consumers who want fresh food are still likely to find better bargains elsewhere. Kirk looked at Whole Foods’ new prices on 14 produce items and eggs and found that prices at Sprouts Farmers Market were 6.6% lower on average.
Given this, Kirk thinks investors in numerous grocery stocks don’t yet have to panic about Whole Foods’ advance. “We continue to believe Amazon-Whole Foods appeals to more urban, affluent customers than Sprouts, Kroger, and Supervalu retail/customers, but will monitor price changes closely,” he writes.
Big Picture: Amazon.com got a lot of attention for its Whole Foods price cuts, but an analyst has found that most prices remain the same.