Amazon (AMZN - Get Report) will lower prices on more than 500 items sold at Whole Foods by Wednesday as the company looks to shake the company's reputation for being a high-cost grocery option, according to documents viewed by the Wall Street Journal.
Amazon is making the move amid increased competition from grocery stalwarts such as Walmart (WMT - Get Report) and Kroger (KR - Get Report) , whose advertisements tout their low prices. Amazon purchased Whole Foods in 2017 for $14 billion and sometimes has been referred to as Whole Paycheck for its high prices. After purchasing Whole Foods, Amazon reduced prices on some popular perishable items, and offered an additional 10% discount on sale items to Amazon Prime members.
The Journal reports that some Whole Foods employees are being scheduled to work overnight Tuesday and early-morning Wednesday in order to switch tags to display the new lower prices and hang orange signs promoting them.
The price cut plan was so secretive that employees in the know were using code names to keep the price cuts under wraps. A Journal source said that few workers at the company's nearly 480 stores knew of the pending price reductions.
Amazon shares closed Monday's session up 1.88% to $1,814.19 and are up 21% so far this year.
Amazon is a key holding in Jim Cramer's Action Alerts PLUS charitable trust.
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