John Matarese looks into the impact Amazon may be startinfg to have on other grocery chains
When Amazon bought Whole Foods last year, many people wondered if it would really have much impact on the grocery industry.
Now, a year later, we're seeing that it already has, and it may be starting to put some competing stores out of business.
Aggressive price cutting having an impact
The organic grocery wars may already have a winner, according to Business Insider. It says Whole Foods is "rocking the grocery industry," cutting prices and marketing aggressively since it was taken over by Amazon last fall.
Now, one of its direct competitors, Fresh Market, is closing 15 stores in 9 states, though it did not specifically cite Whole Foods in its announcement.
Another competitor, Illinois-based Fresh Thyme, has closed several stores, though the company says it is still growing, albeit at a slower pace, according to Supermarket News.
Competitors' customers defecting to Whole Foods
You may not be happy with this if Whole Foods is not really your favorite organic grocery.
The New York Post says Whole Foods is "feasting on its competitors' customers," with Trader Joe's customers "defecting at the highest rate."
If you prefer Trader Joe's for its cookies and its Two-Buck Chuck wine, you might say "doesn't that stink?"
Good news for Trader Joe's fans: the chain is owned by a major German supermarket group, so it is not going anywhere.
And with baby boomers retiring, the Tampa Bay Times says there is plenty of room for a variety of upscale, organic grocers.
Sure, Whole Foods still doesn't appeal to most budget-conscious shoppers who shop Walmart, Aldi or their local grocery store for bargains.
But every month Amazon is making Whole Foods more aggressive and competitive, and it's worth watching so you don't waste your money.
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