Amazon is pushing to get more people buying its groceries, with more price drops at Whole Foods.
The grocery chain, long derided as "Whole Paycheck," has been feeling pressure from other grocers as they increase the kind of quality offerings Whole Foods is known for, and Amazon wants to be a player in the business.
"We could see ourselves in a bit of a price war as the others, everyone responds," said retail analyst Wade Ragas. "Whatever price cut one does, they all have to do."
Ragas says grocers operate on very narrow profit margins, but Amazon does a lot more than groceries, and can withstand the pressure longer.
"It's a very thin margin business, meaning in a price war, you don't have to go down much to hurt the others pretty badly," he explained.