When Amazon shook the food industry on both sides of the Atlantic through its $13.7 billion takeover of Whole Foods in June, the US giant was quickly tipped to go on to cut prices. As some experts joked, Whole Foods would soon shake off its nickname of Whole Paycheck.
Amazon’s move at the end of last week to reduce the cost of Whole Foods products “on a selection of best-selling grocery staples”, such as bananas and avocados, and the ominous promise of “more to come”, has unnerved investors once more, however, by raising again the prospect of a renewed price war. Shares in Wm Morrison, J Sainsbury and Tesco, the three big UK public supermarkets were all weaker.
Amazon has been gradually encroaching on the