Although the new Prime perk means some lower margins for Whole Foods, this grocery war has plenty of upside for AMZN stock if it boosts overall sales at the Amazon-owned grocery stores.
According to Amazon, these new benefits will begin immediately for those in Florida near Whole Foods locations, then rolling out to the rest of the country this summer. The merchant giant just gave its premium clients a ten percent discount on items that are already on sale at its organic food subsidiary.
Prime savings at Whole Foods signal Amazon's biggest attempt yet at synergy between the two brands.
Amazon says it has more than 100-million prime members.
The discounted items will be labeled in-store with yellow "10% off" sale signs and "Prime Member Deal" signs.
This is the latest benefit for Prime members shopping Whole Foods Market. Amazon has been trying to convert its loyal onlinePrime shoppers to become loyal Whole Foods shoppers and have previously offered free two-hour delivery from Whole Foods stores. Orlando residents can use the discount at any of the three Whole Foods Markets in the area.
Amazon cut prices at Whole Foods for all customers once it completed its purchase of the chain in August, and announced another round of price cuts in November.
Hoping they've fully convinced you that it is a necessity, Amazon recently upped the price of their Prime service from $99 to $119 a year.
The discounts are now available at all of Whole Foods' Florida stores, and will roll out nationwide throughout this year.
"We're thrilled for Whole Foods Market to be part of the Prime experience", said Whole Foods CEO John Mackey in the news release. Customers renewing their memberships will pay the increased price starting June 16. And we expect more along similar lines as they further integrate their operations.
Whole Foods is reported to have a total of more than 470 stores in the US, Canada and United Kingdom - the vast majority of which are in the US. In that same September 2017 research report, Morgan Stanley also estimated that almost 40% of Whole Foods shoppers, or 5 million households, weren't Prime subscribers.