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Amazon cutting prices of turkey, canned pumpkin for Thanksgiving at Whole Foods

  • Whole Foods has cut prices on holiday staples and other groceries, Amazon announces.
  • Customers will be able to purchase organic or non-antibiotic turkeys at a reduced price of $3.49 per pound and $2.49 per pound, respectively.
  • Some competitors, like ShopRite, offer free turkeys to shoppers who spend a certain amount of money.

Whole Foods has cut prices on holiday staples and other groceries, Amazon announced Wednesday.

Customers will be able to purchase organic or non-antibiotic turkeys at a reduced price of $3.49 per pound and $2.49 per pound, respectively. Members of Amazon Prime will save an additional 50 cents per pound on both varieties, the company said in a release. A Whole Foods representative told CNBC that cashiers will identify Amazon Prime members when customers present coupons sent via email.

The company didn't say how much of a discount it was offering.

"We're just getting started" on reducing prices after the Amazon buyout closed in August, Whole Foods CEO John Mackey said in a statement. "We'll continue to work closely together to ensure we're consistently surprising and delighting our customers while moving toward our goal of reaching more people."

New discounts also are for products including chicken breasts, shrimp, canned pumpkin and specialty potatoes.

Before Amazon's acquisition, Whole Foods was known pejoratively as Whole Paycheck because of its high prices.

Afterward, Amazon marked down certain Whole Foods products, including on produce and fish.

Grocers like ShopRite often have promotions where shoppers can earn a free turkey by purchasing a set amount of groceries in the weeks leading into the holidays.

Last week, the investment arm of Moody's said in a note that Kroger "will remain a market leader" among groceries. Moody's believes the Cincinnati-based chain is the "best equipped among its peers" to deal with an escalating price war from Amazon, saying Kroger's "strong private label brand" gives it a distinct advantage.

Grocers are in a race to the bottom when it comes to price. Big-box retailer Target and Wal-Mart have made investments to slash prices on frequently purchased items, while value players Lidl and Aldi are expanding rapidly across the U.S.

Against the backdrop of a down market, shares of both Kroger and Sprouts traded over 1 percent lower Wednesday.

— CNBC's Lauren Thomas contributed to this report.