Whole Foods’ prices have never been more affordable for consumers, and the chain has Jeff Bezos and Amazon to thank, its founder said.
John McKee, who founded Whole Foods in 1980 with a staff of 19, said that after Amazon acquired the company in 2017, it gave up its “whole paycheck” reputation for shock value.
“Amazon has allowed us to cut our prices by four times,” McKee said. Luck. “I almost never hear the whole paycheck story anymore, thanks to Amazon.”
While the price cuts would cost the business revenue in the short term, McKee knew it would make it stronger in the future, and he credits former Amazon CEO and current executive chairman Jeff Bezos with the foresight to seize the opportunity.
“Jeff is brilliant; he’s a genius,” McKee said. “What I love most about Jeff, besides being creative and entrepreneurial, is that he really thinks long-term.”
The organic supermarket chain is now going further to attract consumers on a budget. The company has doubled sales and discounts on many products, as well as savings opportunities for Amazon Prime members. At the Milken Institute’s global conference last month, Whole Foods CEO Jason Buechel told Yahoo Finance that the company plans to open 30 stores per year.
Whole Foods’ efforts to lower prices are especially timely as inflation continues to weigh on Americans’ grocery budgets. Although grocery inflation has shown signs of easing in recent months, prices remain low. 21% higher than in January 2021..
In addition to allowing Whole Foods to lower prices, Amazon also increased employee pay, McKee added, and unlike other acquisitions in the business world, Amazon did not try to impose its culture on the company.
“They weren’t trying to change Whole Foods,” he said.