Whole Foods' prices drop as the chain continues to battle its 'whole paycheck' reputation under Amazon's control
- Whole Foods' prices have dropped roughly 2.5% since April, according to a Tuesday note from Morgan Stanley.
- In April, Amazon announced it would slash prices at the grocery chain.
- Whole Foods' prices have fallen by about 5% over the last two years, with a basket that cost Morgan Stanley analysts roughly $200 in 2017 costing $190 in 2019.
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Whole Foods' prices have dropped as Amazon tries to get the grocery chain to shed its "whole paycheck" reputation.
Prices have dropped roughly 2.5% on average at Whole Foods through August, following highly publicized price cuts in April, according to a note from Morgan Stanley on Tuesday.
Read more: Amazon is slashing Whole Foods' prices by 20% on hundreds of items
Amazon announced in April that it had slashed prices at Whole Foods stores across the US, targeting fresh produce in price cuts that were as steep as 20%. A survey of fresh produce by Business Insider at the time found that Whole Foods' prices were about 7% cheaper than Kroger's.
A representative for Whole Foods did not immediately return Business Insider's request for comment on the Morgan Stanley note.
Overall, Whole Foods' prices have fallen by about 5% over the last two years, according to Morgan Stanley. A basket that cost analysts roughly $200 in 2017 cost $190 in August.
Amazon, which acquired Whole Foods for $13.7 billion in 2017, has also added more Prime deals at the grocery chain in recent months.
In April, Amazon announced it would double its Prime member deals at Whole Foods. In May, the chain began specifying different Prime member deals on receipts to highlight customer savings.