Published: Thu, May 17, 2018
Finance | By Claude Patterson

Amazon Prime members save at Whole Foods

Amazon Prime members save at Whole Foods

Amazon Prime savings in Whole Foods stores started rolling out in the US on Wednesday, beginning in Florida, according to USA Today. Or customers can opt to use their phone number to identify themselves as Prime members.

Amazon Prime members will receive an additional 10% discount on sale items throughout the stores. These people are presumably among the few remaining upper-middle-class Americans whom Amazon hasn't already converted to Prime, and Amazon's Prime-linked discounts at Whole Foods seem created to win them over. Prime members get fast shipping from and other perks, including access to its video streaming service.

Whole Foods came under Amazon CEO Jeff Bezos' corporate umbrella in 2017, which resulted in some items being marked down at the time. That not only includes regular Whole Foods stores, but also 365 spinoff stores.

In February, Amazon announced it would begin offering free two-hour delivery of natural and organic products from Whole Foods Market through Prime Now in select cities.

Well, it turns out that one of the ways to shop at Whole Foods at cheaper prices is to become an Amazon Prime member.

Whole Foods is getting even more Amazon-y. With its purchase of Whole Foods, Amazon immediately gained a 1.2% toehold in the $800 billion retail grocery market that's led by Walmart with 14.5% and Kroger Co (NYSE:KR) with 7.2%. Customers renewing their memberships will pay the increased price starting June 16. That price is expected to jump 20 percent to $119.

To counter the growing threat from Whole Foods and German discounters Aldi and Lidl, Walmart has pledged to continue offering low prices to shoppers at its 5,000-plus US stores. 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.

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