Whole Foods Market putting new limits on vendors

Under the ownership of Amazon, Whole Foods Market is changing the way some products are sold in its stores — and asking vendors to help pay for them.

The changes, outlined in an email sent to the grocer’s suppliers, are intended to save on costs and centralize operations, reported the Washington Post, and come as Amazon pushes to reduce prices at Whole Foods’ stores.

Previously, Whole Foods allowed small mom-and-pop suppliers to oversee their own merchandise or hire local firms to do so. But under the new rules, suppliers must work exclusively with Stamford, Conn.-based retail strategy firm Daymon, and its subsidiary, SAS Retail Services, to schedule in-store tastings, check inventory on shelves and create displays on their behalf, according to the report. And suppliers are being required to help fund the effort, The Post said. For example, suppliers that sell more than $300,000 of goods annually to Whole Foods will be required to discount their products by 3% (for groceries) or 5% (for health and beauty products) to fund the new program.

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