When Amazon.com announced its takeover of Whole Foods, it followed with slashing prices of some of the most purchased items such as avocadoes and eggs.
In the following months, Chuck Grom, an analyst at Gordon Haskett Research Advisors says that the new low prices do not reflect the overall pricing of stores. In fact, the cost of shopping there has actually risen 1 percent.
The strategy was simple and brilliant. Amazon discounted a few items to drive up sales and traffic to the store, while some of the store’s items were slightly increased.
During the Thanksgiving holiday, Turkeys, salmon and many holiday fixings were marked down, but, it is business as usual. Whole Foods remains a costly market.
Next Moves
Now Amazon, a multinational conglomerate, has been reviewing proposals from cities vying to host their second headquarters, HQ2. Slated to bring 50,000 jobs to the area it chooses, the project that will take years to build. In effect, it will create an Amazon city, or make the area they call their second home, beholden to the company.
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