Sorry, supermarkets: Amazon just fired its opening salvo in the grocery wars

 In Australia, International, NewZealand
Sorry, supermarkets: Amazon just confirmed that your worst nightmares are about to come true.
Ever since the e-commerce giant announced in June that it had agreed to buy US supermarket chain Whole Foods Market, speculation had been in overdrive about how their combined powers could shake up the grocery industry.
The $17 billion deal had also put a chill through Australian supermarkets, with shares of Woolworths, Coles’ owner Wesfarmers and independent wholesaler Metcash all rocked by concerns Amazon’s looming push into the Australian market will escalate the grocery wars.
On Thursday, investors achieved some clarity about the online behemoth’s strategy: Amazon announced that it would start cutting prices at Whole Foods from next week on, making an immediate move to solve a problem that has plagued the grocer for ages: Its prices are simply uncompetitive now that it is far from the only organics game in town. US rivals such as Wal-Mart and Target are all in the organics business now, and shoppers have noticed. Sydney Morning Herald – Read more…

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