Amazon's Whole Foods strategy may not be so consumer friendly after all
Just days after taking over Whole Foods for $13.7 billion, Amazon is getting some cynical response to its vow to provide deep food product discounts at the high-end grocery stores.
One industry analyst stated in a client note that the announced price discounts on items such as avocados, bananas and beef are likely not as deep as Amazon's marketing indicates, according to a New York Post report.
"Amazon appears to be taking a page out of the old Walmart playbook on the price action front — that is, announcing a plethora of price actions that on the surface look deep, but in reality only reveal modest reductions," stated Gordon Haskett Research Advisors analyst Charles Grom, according to the Post. He added that "initial checks suggest that Amazon's bark may be greater than its bite."