Should We Fear an Amazon Monopoly on Healthy Food?  

By JASON CHUNG   Two months ago, I wrote about the potential impact of the Amazon purchase of Whole Foods on grocery prices.  Both here and in the Boston Globe, I hoped and predicted that Amazon would use its famed distribution network to drive down prices on the healthy and organic foodstuffs that made Whole Foods famous. I’m happy to say that I was right. Today, on Day 1 of Amazon’s official ownership of Whole Foods, Americans got to see the first tangible impacts of Amazon ownership and, as predicted, it was lower prices.  As noted by journalists, the chain once derided as Whole Paycheck should now be referred to as “3/4 Paycheck” given deep discounts averaging 25% on a wide range of products ranging from bananas to butter. Though terrifying for Amazon’s competitors such as Kroger, Walmart and Costco, Amazon’s major foray into brick-and-mortar groceries may end up being a boon for consumers – at least in the short term.  It’s no secret that Amazon retains its web startup mentality in aggressively promoting loss leaders to drive out competition.  And increased competition will better serve consumers who have been squeezed by recovering inflation on food prices. Soon, Amazon intends to install more of its Amazon lockers into Whole Foods locations, thereby facilitating deliveries for goods bought on the Amazon website while also increasing foot traffic to its stores.  Analysts also speculate that Amazon’s grocery delivery service, Amazon Fresh...
Source: The Health Care Blog - Category: Consumer Health News Authors: Tags: Tech Amazon Jason Chung Whole Foods Source Type: blogs