And rightfully so. According to this Chicago Tribune report Bezos is looking to shed the chain of high prices and also workers.
When Amazon.com completes its acquisition of Whole Foods Market, Chief Executive Officer Jeff Bezos will try to keep the grocer’s reputation for premium fresh foods while cutting prices to shed its “Whole Paycheck” image, a source said.
Amazon expects to reduce headcount and change inventory to lower prices and make Whole Foods competitive with Wal-Mart Stores and other big-box retailers, according to a person with knowledge of the company’s grocery plans. That included potentially using technology to eliminate cashiers. An Amazon spokesman denied any job cuts were planned.
Amazon, known for its competitive prices, is trying to attract more low- and middle-income shoppers with its grocery push. The Seattle-based company already offers discounted Amazon Prime memberships for people receiving government assistance and is part of a pilot program to deliver groceries to food-stamp recipients.
Whole Foods has already been reducing prices to try to turn around its worst sales slump since going public in 1992. It has four “365 by Whole Foods Market” stores that are cheaper to build and operate than a traditional location and offer lower-priced items aimed at younger shoppers.
Amazon is considering extending the cost-cutting effort with the no-checkout technology it’s developing at its Seattle convenience store, “AmazonGo,” according to the person familiar with the matter, who asked not to be named because the plans are private. The technology lets people pay with smartphones without seeing a cashier or going to a checkout kiosk, which would help Amazon differentiate itself in the brick-and-mortar setting and reduce labor costs at Whole Foods stores. The employees remaining would help improve the shopping experience, the person said.