Amazon will now give Whole Foods customers discounts for being Prime members
17 May, 2018, 01:21 | Author: Kristen Ingram
It also offers free two-hour delivery through its Prime Now same-day delivery service, which is currently running in Whole Foods stores in ten cities.
Membership programs like Prime are one of the best ways to attract new customers and maintain loyal ones, said Brittain Ladd, a former Amazon executive and now a strategy and supply-chain consultant for large grocery store operators.
Morgan Stanley analysts say the price break could actually make Whole Foods, often dubbed "Whole Paycheck" a less expensive option than most traditional grocery stores.
Whole Foods, with 463 US stores and roughly 1 percent share of the fragmented USA grocery market, has gained momentum since the Amazon merger last summer, Whole Foods co-founder and Chief Executive John Mackey told Reuters.
An example of one of those weekly rotating specials recently was $10 off per pound of wild-caught halibut steaks. Prime already offers plenty of perks to buyers, on top of the newly added Whole Foods discounts.
So far, the perks are available in Florida and will roll out to all other stores starting this summer. Or, customers can opt in to use their phone number to save at checkout.
Lessons learned in Florida will improve demand forecasts for featured items and product allocation ahead of a nationwide rollout, especially since Amazon knows the address and purchase history of every Prime member.
In bringing Prime to Whole Foods, Amazon is trying to give members another reason to stay on as subscribers - even as it raises the price - and try to lure those who aren't to join. Start a free trial of Amazon Prime at amazon.com/prime. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon. As the first national certified organic grocer, Whole Foods Market has over 470 stores in the United States, Canada and United Kingdom.
Early moves by AMZN to leverage its Whole Foods ownership were relatively low-key.
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