Amazon is cutting prices at Whole Foods again

Amazon is cutting prices at Whole Foods again

Shares of Kroger Co. and Sprouts Farmers Market Inc. fell on Wednesday after Amazon announced that it was lowering prices on more grocery items and holiday staples.

Whole Foods is selling turkeys to Amazon Prime members for 50 cents a pound cheaper than is available for other customers.

Select organic and no antibiotic turkeys will be sold at reduced prices of $3.49 per lb. and $2.49 per lb., respectively. Amazon didn't say how long the price reductions would last, but it's safe to assume they'll stick around at least through Christmas. Which seems silly, because wouldn't Amazon and Whole Foods want more people to sign up as Prime members and enjoy these discounts?

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It will also offer lower prices on well-known and organic brands like organic rice from Lundberg Family Farms, organic beans from Eden Foods, organic chicken and vegetable broths from Pacific Foods, organic eggs and milk from Organic Valley, toothpaste from Tom's of Maine, Pasture Raised Eggs from Vital Farms, plus Chobani Yogurt, California Olive Ranch EVOO, Siggis Yogurt, Applegate Hot Dogs, and Fage Yogurt. Sprouts Farmers Market ( SFM ), which turned out strong Q3 results despite Whole Foods' earlier price cuts, lost 1.6%.

While Amazon's deep pockets give Whole Foods more room to cut prices, Target and other grocers, whose value game is stronger, have also tried to be a little bit more like Whole Foods.

"We're just getting started" on reducing prices after the Amazon buyout closed in August, Whole Foods CEO John Mackey said in a statement. "In the few months we've been working together, our partnership has proven to be a great fit". In fact, the process for redeeming the first ever Prime-exclusive discount at Whole Foods is so specific and regimented that Amazon includes a Frequently Asked Questions (FAQ) section on the coupon page itself. In that case, customers are advised to look for the turkeys marked with an orange stripe that says "Special Savings".

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