Home / BUSINESS / Whole Foods has tried lower prices before. Can Amazon make it work? – Chicago Tribune

Whole Foods has tried lower prices before. Can Amazon make it work? – Chicago Tribune

Months before Amazon announced it would be shelling out $13.7 billion for Whole Foods, the grocery chain made a surprise announcement of its own: It would begin lowering its prices.

The April announcement was born of necessity. Whole Foods was experiencing the longest sales slump since going public in 1992, and investors had begun pressuring the company to rethink its strategy.

The high-end grocer has long resisted lowering its prices, which has earned it the nickname “whole paycheck.” The few times it has, analysts say results have been spotty, sending profit margins lower without driving up volume.

“The reductions have, quite honestly, been haphazard and they’ve done very little to change peoples’ perception of the company,” said Neil Saunders, managing director of GlobalData Retail in New York. “This has been a perennial problem for Whole Foods with no good solution.”

Whole Foods has tried lower prices before. Can Amazon make it work? – Chicago Tribune

About admin

Check Also

US Existing-Home Sales Fall to a One-Year Low After Harvey – Bloomberg

Sales of previously owned U.S. homes declined to a one-year low in August as affordability …

Leave a Reply

Your email address will not be published. Required fields are marked *

Powered by WP Robot