Whole Foods Gains 25% More Shoppers After Amazon Slashes Prices, Target Lowers Prices To Compete
Amazon’s decision to slash Whole Foods Market prices is paying off. Since the takeover the high-end grocer's customer traffic has increased 25%, Bloomberg reports.
Amazon has cut the grocery retailer's prices by as much as 43% and in some locations, including Chicago, Whole Foods stores saw an increase of 35% more shoppers since the changes were implemented.
In an effort to compete, Target announced it would be lowering prices on thousands of items ranging from baby formula to toilet paper. Instead of focusing on promotional offers, Target will offer lower prices on a daily basis, Retail Dive reports. The news led to a drop in Target's shares Friday.
Amazon bought Whole Foods in June for $42 per share in an all-cash deal worth a total of $13.7B. The deal closed in August and shortly after, the e-commerce giant announced it would be lowering the traditionally high prices of Whole Foods in order to be more affordable for a wider group of shoppers.