Amazon's Opening Salvo In Grocery Price War Hits Bond Market

Amazon's Opening Salvo In Grocery Price War Hits Bond Market

Consumer Reports has no financial relationship with advertisers on this site. The company cut prices by as much as 43 percent on a broad cross section of Whole Foods groceries Monday, its first day as the owner of the chain following the $13.7 billion acquisition. From fresh fish to produce, prices were down across the board.

Elsewhere, Tops Friendly Markets's $560 million of bonds due 2022 dropped 7.75 cents on the dollar last week to a record low of 67.5 cents.

The competition is less excited: after the deal was approved by Whole Foods shareholders and the Federal Trade Commission late last week, four major USA grocers' market caps fell by a combined $11 billion, and still haven't fully recovered.

Whole Foods has 12 locations in Pennsylvania. "If they lower price significantly, they'll have to overcome a major hurdle with maintaining the quality".

Amazon just slashed a lot of Whole Foods prices.

In Whole Foods bricks and mortar stores, Amazon's Echo and Echo Dot were put on sale, heavily reduced and ready to buy alongside the spelt and organic cannellini beans.

The bottom line, however, is pricing, says Burt Flickinger, founder of consulting firm Strategic Resource Group, which advises the grocery business.

Organic bananas are now 69 cents (down from 99 cents).

For now, "Whole Foods still appears to be charging more "patrician prices" rather than prices for the poor and working people", he says. CR does not endorse products or services, and does not accept advertising.



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