Here Are the Benefits Amazon Prime Members Will Get at Whole Foods

29 August, 2017, 00:55 | Author: Franklin Nunez
  • Amazon Gets Deep Into a Cut-throat Supermarket Scene (AMZN)

As Amazon completes its purchase of the grocery chain, it plans to make Amazon prime the customer rewards program at whole foods stores.

Amazon has also said it will use Whole Foods stores to provide benefits to Prime members, such as lockers for order pickups.

Amazon Prime will become the online points-collecting system for customers and users will also be able to do their grocery shop online via Amazon, finding Whole Foods products among the millions of miscellaneous goods it sells online. Cutting prices at the chain with such an entrenched reputation for high cost that its nickname is Whole Paycheck is a sign that Amazon is serious about taking on competitors such as Wal-Mart, Kroger and Costco.

Inc. marked its takeover of Whole Foods Market Inc.by cutting grocery prices and advertising its Amazon Echo devices at a steep discount in numerous natural grocer's stores nationwide. The company has 460 shops with the vast majority in the United States and Canada and seven in the United Kingdom, where prices were also dropped by up to 33pc. Items like organic milk are something the couple will now be shopping for at Whole Foods.

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“By working together with Amazon and integrating in several key areas, we can lower prices and double down on that mission and reach more people with Whole Foods Markets high-quality, natural and organic food.

The downtown Los Angeles Whole Foods prices, in some cases, were lower than those at a nearby Ralphs grocery store owned by Kroger, which competes aggressively on price. The stores will likely also be home to numerous tech giant's retail experiments.

"Goodbye, Whole Foods as we know it", Karen Short, an analyst at Barclays Capital in NY, said in a note.

As part of Amazon's putting its stamp on the grocer, Whole Foods stores displayed promotions for Amazon's Echo speaker in tongue-in-cheek fashion, with signs reading "Farm Fresh" and "Pick of the Season".

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At least one Federal Reserve official has indicated that Amazon's purchase of Whole Foods could further weigh on overall inflation.

It's an "opening salvo" in the grocery wars, said Neil Saunders, managing director of GlobalData Retail, and shares of other supermarkets fell on the news.

First announced in June, the $13.7 billion offer for the upscale supermarket retailer sent shockwaves throughout the market. Some of the steepest price cuts were on meat: Fresh Atlantic salmon dropped by a third from$15 to $10 a pound, and Hass avocados by almost half. The combination of Whole Foods stores and Amazon's online grocery operations will become the fifth largest US grocery retailer today. Amazon has not indicated whether it will break out Whole Foods operations in its financial statements or fold them into its current retail operations.

As stated in their press release, Amazon hopes to offer more in-store benefits and discounted items as the two companies work out the logistics of the acquisition.

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