Even though Amazon promised lower prices on seafood and other items at Whole Foods Market after its acquisition of the natural foods retailer, Whole Foods is raising prices on around 600 items.
The Austin, Texas-based operator of nearly 480 stores said in a December email that 550 items would realize a price increase of USD 0.66 (EUR 0.58) on average, The Wall Street Journal reported. Plus, Whole Foods hiked prices on around 50 additional items this month, according to the newspaper.
It is unclear whether fresh, frozen and shelf-stable seafood - such as sustainable canned tuna - are subject to the price increases. Whole Foods did not respond to a request for comment from SeafoodSource.
However, the retailer told Fortune that it’s seen increased costs from suppliers “due to materials, labor and transportation, and we’ve absorbed much of the inflation."
Still, prices on many products “have also decreased”, Whole Foods said.
“We remain committed to continuing to lower prices with Amazon as we deliver on our mission to make high-quality, natural and organic food more affordable and accessible,” the retailer said.
The February price hikes on around 50 items are due to 700 contracts to sell certain goods at low prices expiring, according to The Wall Street Journal. The higher prices on those items are expected to net the retailer hundreds of thousands of dollars in additional revenue weekly.
Whole Foods price hikes will especially benefit Walmart, says CNBC’s Jim Cramer.
“The big worry for Walmart was whether Whole Foods would just come in and blast them,” he said. “And it’s been the opposite. Walmart is the predominant grocer in this country.”
Right after Amazon officially acquired Whole Foods in August, 2017, the company slashed prices on a selection of bestselling grocery staples across its stores, including responsibly-farmed salmon and tilapia.
“We’re determined to make healthy and organic food affordable for everyone. Everybody should be able to eat Whole Foods Market quality,” Amazon Worldwide Consumer CEO Jeff Wilke said at the time. “We will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards.”
