Following Amazon's acquisition of Whole Foods, it did not come as a surprise that there were reports suggesting that Prime members would be getting some perks if they were to shop at the grocery store. Now, Prime members can enjoy a 10 per cent additional discount on sale items. These savings are now available in all stores across Florida and will expand to all Whole Foods Market and Whole Foods Market 365 stores nationwide starting this summer. Mackey previously told Reuters that Whole Foods, which has a roughly 1% share of the fragmented USA grocery market, has already seen its basket size - the number of items purchased per transaction - rise since it merged with Amazon last summer.
Meanwhile, the leading e-retail company has started offering other Prime benefits in Whole Foods branches.
The discounts are the latest offering for subscribers to Amazon's Prime service, which offers free two-day shipping on certain items from Amazon's online retailer as well as a video-streaming service. But turning its Prime membership into the Whole Foods loyalty program could drive more people to its stores.
Inc. (AMZN) and Whole Foods Market have no intention of sitting out the grocery price war.
The move serves the same objective as retail loyalty programs. "What we've seen is when we do special deals for Prime members, we get a lot of traffic".
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According to John Mackey, Co-founder and CEO of Whole Foods Market, "We're thrilled for Whole Foods Market to be part of the Prime experience".
An example of one of those weekly rotating specials recently was $10 off per pound of wild-caught halibut steaks. The app will also give customers exclusive deals and highlight the week's best offers.
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Previous year the Seattle-based business purchased grocery giant Whole Foods in the United States to supercharge its efforts in the category, but it appears the Go concept is being kept separate from that investment.
Amazon announced today it will begin offering exclusive discounts to Prime members who shop at Whole Foods - a move that's been expected since Amazon acquired the grocer previous year for $13.7 billion, and more recently shut down Whole Foods' rewards program and digital coupons.