Goodbye, ‘Whole Paycheck’? Price Drops Promised In Amazon Takeover

(CBS) — Beginning Monday, shoppers will find something new at Whole Foods – lower prices.

That’s when online retail giant Amazon takes over the high-end grocery store chain.

CBS 2’s Dorothy Tucker reports.

Amazon is teasing shoppers with price reductions on a long list of products, from produce to organic meats and seafood to staples like eggs and butter.

R.J. Hottovy is a consumer strategist with Morningstar. He says shoppers can expect the store to discontinue some products and add new ones.

“Amazon has a full portfolio of their own household and personal care and consumer-packaged good products that they’ll likely put in the stores,” he says.

The changes Amazon is making at Whole Foods are expected to shake up the entire industry.

“A lot of traditional retailers are trying to figure out how we can compete,” Hottovy says.

He says there could be price wars on items on many categories, from meats and seafood to produce.

Not every retailer will survive the war, he says.

“The players like a Kroger or a Costco that have gas stations — something that can’t ultimately be replicated by Amazon at this point — those are the players that at least have something that stands out and can still drive traffic,” he says.

More traditional grocery stores may have problems, the analyst says.

Walmart responded tells CBS 2 they’ve been offering low prices for 50 years.

 

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