Since its acquisition of Whole Foods Market in August, Amazon has twice promoted lowering prices of some items at the Austin-based grocer.
But those price cuts, which have included items such as avocados, beverages, eggs and turkeys, have not led to a significant overall change, and prices on some items at the stores have actually risen recently, according to a report this week by research firm Gordon Haskett.
The firm tested a basket of 110 items at a Whole Foods store in New Jersey and found that prices on those items rose by about 1 percent since their last basket test in September.
Prices for 87 items stayed the same, while prices for 10 items decreased and prices for 13 items increased, the firm said. Basket items included products from multiple food categories such as dairy and frozen items.
“The biggest driver of the basket going higher sequentially was fewer sale items,” the firm said. “To this end, there were just six items ‘on sale’ in November versus 14 sale items in September.”
Gordon Haskett said despite the recent price increase on the basket, overall prices at Whole Foods are still 1.1 percent lower than before the grocer was sold to Amazon. But the firm also said that Amazon needs to keep prices down at Whole Foods stores in order to keep customers’ attention.
“Demonstrating lower prices to this new customer will be critical to the early success of the integration,” the firm said. “ First impressions are the most lasting.”
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