New analysis by Gordon Haskett finds Amazon has increased total basket price at Whole Foods 1% since the end of September, with the average price increase on each item about 1.6%.
Snack foods are up the most, showing a 5.2% increase since the end of September. Dry grocery was up 2.5%, beverage, bakery and frozen goods increased 1.3%.
Amazon will have to keep up the low price image if it’s going to keep shoppers attracted after the initial promotions in August, analyst Chuck Grom wrote.
“Demonstrating lower prices to this new customer will be critical to the early success of the integration, in our view – first impressions are the most lasting,” he said.
Over the past several years, Whole Foods invested heavily in price cuts in an effort to shake its “Whole Paycheck” image, without much success.
Despite the increases in other areas, however, one major area continues to show lower prices overall.
Produce, according to the basket analysis by Gordon Haskett, is still down almost 5% since the acquisition.