Whole Foods' price cuts debuting Wednesday may mean past reductions didn't do their job, former Walmart U.S. CEO and President Bill Simon said.
Whole Foods is debuting lower prices in its stores Wednesday, and former Walmart U.S. President and CEO Bill Simon doesn't expect that the strategy will boost its sales.
The recent price cuts are probably an"indication that [Amazon's strategy] hasn't worked the way they expected it to," Simon, a frequent critic of Amazon, told CNBC's"Squawk on the Street" on Wednesday. Groceries, especially with a focus on the produce market, are a difficult market to enter, Simon said. Acquiring a grocery chain is likely the hardest thing Amazon could have chosen to do, he said, adding that it would have been easier to buy a national retailer such as Walgreens or Target if it wanted to expand its physical footprint.
"[Products] are still expensive," he said. However, that's not to say this won't benefit the company, adding that Amazon"got the lift they're looking for from this price action, because it's been covered in the press."
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