Summary: Amazon bought Whole Foods in 2017 and used penetration pricing strategy but prices returned to normal within 18 months. Now, Amazon is reportedly planning to launch a new grocery store chain which will be cheaper and smaller than Whole Foods and carry a broader assortment of products with a focus on convenience. Grocery stores are low margin businesses so this venture may pose big threats to international businesses such as Walmart, Kroger and Aldi.
Posted by ZH
Business and Management 11-C 