Amazon lowering prices at Whole Foods for Prime members

Mae Love
May 17, 2018

It's a good time for Orlando residents to have access to cheaper organic food, since a recent study found that Orlando residents need to eat more fruits, vegetables and healthy alternatives to fatty foods. Mackey previously told Reuters that Whole Foods, which has a roughly 1% share of the fragmented us grocery market, has already seen its basket size - the number of items purchased per transaction - rise since it merged with Amazon last summer. Prime members get an additional 10 percent off sale items and exclusive deals on certain items.

Meanwhile, on Amazon, Whole Foods in-store brand 365 Everyday Value, which was already a great deal compared to some of the store's other prices, will likely be among the company's top-selling products this year.

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The catch, for now at least, is that the new 10% discount and these weekly deals are only available at Whole Foods stores in Florida.

Given their scale, the newly announced discounts may help strip Whole Foods of its notorious label as being restrictively expensive.

On Wednesday, Whole Foods launched a much-awaited loyalty program that provides exclusive discounts to the Prime customers, including a discount of 10 percent off on hundreds of items on sale and weekly specials in a rotation.

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The new loyalty strategy will test whether Amazon's $13.7 billion deal for Whole Foods brings much-feared disruption and an intensified price war to the $800 billion USA grocery industry dominated by Walmart Inc (WMT.N) and Kroger Co (KR.N). The company has more than 100 million Prime members and will be hoping Whole Foods diehards are enticed enough by its new offers to make the plunge.

As it stands, it would seem that Amazon is trying to position its Prime platform as the de facto service for a lot of Americans, Recode notes.

The move serves the same objective as retail loyalty programs.

Whole Foods Market has over 470 stores in the United States, Canada and United Kingdom.

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