A day after Amazon revealed its plans to cut prices at Whole Foods Market following the completion of its takeover on Monday – an announcement that obliterated billions of dollars’ worth of food suppliers and rival grocers’ market capitalization - Bloomberg is reporting that WFM’s rivals are mulling an incredibly difficult choice: Whether to follow suit and cut prices in one of the few segments of the food market that’s actually growing, or hold the line against their high-tech rival and risk being undercut into oblivion.
Price reductions could draw in new customers to brick-and-mortar locations. However, already thin profit margins and technological barriers make lowering prices a risky proposition.
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