Published: Wed, May 16, 2018
Economy | By Shawn Conner

Amazon cuts Whole Foods prices for Prime members

Amazon cuts Whole Foods prices for Prime members

Prime members can scan the free Whole Foods mobile app at checkout and get 10 percent off hundreds of weekly sale items and discounts on best-selling products in Florida stores, the company said in a news release. These advantages are available now in Florida and will spread out to the remaining stores beginning this summer.

Amazon is trying to give its Prime members more reasons to shop at Whole Foods. Amazon cut prices on many items at Whole Foods upon completing the acquisition previous year, as part of its broader push into physical retail stores.

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And in February, Amazon started using Whole Foods locations as depots for groceries delivered by the company's Prime Now quick delivery service.

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When Inc. (NASDAQ: AMZN) bought Whole Foods, other grocery companies anxious that America's largest e-commerce company would use its delivery systems to make groceries more readily available, particularly for home delivery.

The shoppers can enjoy the discounts by providing their phone numbers at the checkout or scanning the Whole Foods Market app. There was even a sighting last month that suggested that Amazon would be giving Prime members a 10% discount. Neither has a business like Prime to leverage as a tool to get or retain customers.

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This also fortifies Amazon's growing power from a bundle of Prime offerings, which Chief Financial Officer Brian Olsavsky recently tagged as "the best deal in retail". Effective May 11, Amazon raised the annual price for Prime to $119 a year from $99. It includes streaming media, a large portion of it produced by Amazon itself. It also offers Thursday night football games via Prime, on top of unlimited photo storage, among other perks. Amazon has launched free two-hour delivery from Whole Foods through its Prime Now service in 10 cities, has Amazon lockers for package pick up at Whole Foods, and is selling Amazon products in stores.

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