Whole Paycheck might sound like a weird term to a lot of people, but it means the same thing as whole foods. Amazon, the Internet giant in the United States, ad that they would reduce food prices in an attempt to solidify in a market they have dominated for the past five years. This plan will be implemented from Monday next week and will affect several products such as roast chickens, baby kale as well as organic avocados. This should be a wake-up call for the grocery industry which has been dominated by other companies such as Kroger and Walmart. A retail manager at a company known as Euromonitor by the name of Michelle Grant said it was one of the ways Amazon works. They are known to work very quickly over the past few years. In a war with his shareholders, CEO Jeff Bezos is known to have started discount wars. He is always ready to lose money with the long term goal of outperforming his competition. This is something the company has undertaken over the past 23 years of operation. They have launched a war against the sellers of diapers and the booksellers. Now they have decided to go to war with food retailers.
Bob Hetu, an analyst at Gartner, said Amazon informs other competitors that they are in the market. Amazon’s announcement caused Walmart’s share to fall by 2%. As for Kroger, the company’s share fell eight percent on Thursday. Amazon will make this plan a reality by replacing the Prime membership program with the While Foods rewards program. This is a new subscription that will only cost customers $ 99 per year. For their part, they will benefit from free shipping for the products they buy. They will also have a free video streaming service as part of this program. An Amazon executive known as Jeff Wilke said the company is on a mission to make sure people have access to organic and healthy food. However, it’s important to note that people prefer Amazon over other companies for a number of reasons. Amazon is known for its convenience and selection. In the past, Amazon has challenged Barnes & Noble on book prices. Amazon recently declared war on Walmart over the prices of several products. We have also seen the pressure Amazon can exert on start-ups challenging their model. Quidsi, the diaper company, is a good example.