Whole Foods cut back its prices on grocery items when Amazon bought the company in 2017. However, it seems that the significant price drop only lasted for about two years as the company is raising the prices again this year.
The Wall Street Journal reported that Whole Foods will increase the costs of goods being sold in its stores as some suppliers and product manufacturers need to cover the rising rates of transportation, packaging, and ingredients of their items. With this, the consumers should not be surprised if the prices in the said grocery store are not cheap anymore.
Before Amazon bought Whole Foods two years ago, the grocery chain is known for its prices that are considered too expensive for average shoppers. Thus, Amazon lowered the rates to cater to everyone, attract more shoppers and eventually increase the sales for the company to get back on track.
But now, the cheaper price is changing and the consumers may see the old Whole Foods prices back in a few weeks. The WSJ added that in December, it was able to see the company's email that listed 550 grocery items that will be affected by the price increase. It was mentioned that the goods range from crackers to food preserves.
While the higher rates will surely bring in more profits for Whole Foods, there is also a possibility that the buyers will opt for groceries at cheaper prices. When this happens, the store may lose many customers, permanently.
"Like all grocers, Whole Foods Market has experienced increased costs from suppliers due to materials, labor, and transportation, and we've absorbed much of the inflation. Many prices have also decreased, and we continue to expand the number of promotions we offer to give our customers better value," the Business Insider quoted the Whole Foods spokesperson as saying in a statement. "We remain committed to continuing to lower prices with Amazon as we deliver on our mission to make high-quality, natural and organic food more affordable and accessible."
Finally, the Whole Foods market is not only implementing the price hike but it also shelved Whole Foods 365 concept stores that are known to sell cheaper goods. According to Fortune, John Mackey, CEO, and co-founder of Whole Foods stated that the 365 concept stores are no longer needed since Amazon already made prices at Whole Foods a lot cheaper over the past year.
