I have no doubt that the percentage of Prime members who switch to Whole Foods will only increase as Amazon continues to offer new services like free curbside pickup. While this service is not new or revolutionary, it’s just one more reason for Prime members to switch, and if there’s one thing Amazon is especially effective at it’s leveraging its very loyal Prime membership base.

This is a useful service but it is not revolutionary; many other grocers already offer this. While I am sure that it will help Amazon grow the number of Prime shoppers who go to Whole Foods, much more work is needed to drive sales. As much as I hate to be a stuck record, the main issue is still price: Whole Foods is out of kilter on many everyday items and until this is corrected, growing shopper numbers and spend will remain challenging.

This strikes me as a benefit to certain customers but a logistical nightmare for Whole Foods. Here in steamy DC it will be 95 degrees this afternoon; how will Whole Foods handle an order that includes milk, butter, ice cream (things that conceivably could be held in a freezer case) and fresh corn and tomatoes which shouldn’t be kept in a freezer?

Curbside pickup for the supermarket industry might have once been needed to win service but today it’s almost needed to play. Will its addition to the list of benefits for Prime member influence some customers to do some or more of their shopping at Whole Foods? Perhaps but not in significant numbers. Those Prime members that are willing to pay the price at Whole Foods are likely already doing so.

I see price point as being the reason more Prime members don’t shop at Whole Foods. Amazon Prime members love a good deal, and Whole Foods still has the “Whole Paycheck” stigma. Conveniences like home delivery and curbside pickup will help attract a few more Prime customers, but it will take time and significantly lower prices to change people’s overall impression of Whole Foods.

Curbside pickup at Whole Foods is no game-changer and is, in fact, catch-up to others like Walmart that have been offering the service.

As a twice-weekly Whole Foods shopper, I see firsthand that if they want to get past curious Prime shoppers and build a sustainable base, they have deeper problems. Just last week we bought the same brand, same SKU item at regular price from a competitor and saved 25 percent. It was organic but had nothing to do with the organic price myth because it was the same organic product. Instead, it was Whole Foods overcharging. Coupled with OTS (order-to-shelf) inventory problems and increased employee turnover, Prime gimmicks are not going to keep customers shopping there, a sentiment echoed colloquially by a couple of local employees we know.

Giving customers more options for obtaining their grocery orders is a smart strategy, as everyone has their own preferences. Curbside delivery may attract a few more Amazon Prime members to try Whole Foods, but I doubt it will move the needle much.

The biggest obstacle for attracting new customers to Whole Foods is the pervasive perception that their products are too expensive. Amazon has offered discounts to Prime members for certain items, but it hasn’t been enough to attract more customers to switch to Whole Foods. Consumers are creatures of habit and it takes a lot to change habits!

First, is anyone surprised by this move? This is one area where Amazon/Whole Foods has lagged behind traditional food retailers. Second, Whole Foods’ image as fresh and natural gives it more credence for the picking of perishables than might be the case with Amazon Fresh. Third, click and collect always presents the opportunity for a quick visit into Whole Foods for some unplanned, high-margin products.

Reasons for Prime members to do business at Whole Foods:

1. It’s Amazon! The customers are already members and do business with Amazon. There’s a reason they pay an annual fee. They like what Amazon offers.
2. Discounts. Prime members get discounts that non-members don’t.
3. Convenience. Amazon is all about making doing business with them easy. Curbside pickup of an advanced order is very convenient.

Attracting more Prime members to shop at Whole Foods means more business for Whole Foods. If the market for delivery or pickup is growing and Amazon makes Whole Foods a competitive player and if Whole Foods’ prices go down, the number of people shopping at Whole Foods could significantly increase.

Home delivery of groceries is THE battlefront between Amazon and Walmart going forward. 53 percent of Walmart’s business is grocery and they simply must protect that. If Amazon bites into their grocery business due to home delivery, it’s going to be a long road for Walmart going forward. BUT, if Walmart can do it first: that’s a different story.