Whole Foods asks suppliers to fund merchandising changes – In case you’re wondering about Amazon’s impact on small suppliers …

By Susan Kelly on 1/10/2018

Whole Foods Markets is requiring its suppliers to help pay for changes to how products are displayed and inventoried in its stores as the grocery chain cuts prices and centralizes its processes following its acquisition by Amazon, The Washington Post reported.

The changes are intended to create a more consistent experience for customers and suppliers, according to an email to company suppliers obtained by the Post. It said suppliers that sell more than $300,000 worth of goods annually will be required to discount their products by 3 percent (for groceries) or 5 percent (for health and beauty products) to fund the new program.

Local suppliers will also have to pay a fee for product demonstrations, which will be coordinated by a retail strategy firm selected by Whole Foods, according to the newspaper. The article notes that more than 1,000 Whole Foods private-label products have been added to Amazon’s website since the acquisition.

Jeffrey Bezos owns both Amazon and The Washington Post.