Whole Foods to become a Prime perk for Amazon’s customers
Those grumbling about having to pay $20 a year more to maintain their Amazon Prime subscription will soon have some additional perks to make it more worthwhile. According to a CNBC report, Amazon.com will offer 10 percent discounts on all products — every day and sale priced — purchased by Prime members shopping in Whole Foods’ stores and on its site.
The new perk has a three-fold purpose:
- Attract more people to become and stay Amazon Prime members;
- Entice more Prime members to shop at Whole Foods;
- End the organic grocery’s “Whole Paycheck” image.
Amazon CFO Brian Olsavsky told analysts on last week’s earnings call that the Prime program continues to represent the best value in retail, with more perks continually being added.
A source told CNBC that fewer than 20 percent of Prime members are customers at Whole Foods, while 75 percent of the grocery chain’s customers have a subscription in Amazon’s program.
Other benefits for Prime members who shop at Whole Foods include access to exclusive deals, five percent cash back on purchases when they use the Amazon Visa card and free two-hour shipping from a growing number of the chain’s stores through Prime Now.
Whole Foods announced last month that it was ending its loyalty program effective today. At the time, the grocer sent an email to customers without specifics, but promised: “we’re cooking up something great with Amazon and we can’t wait to tell you about it.”
- Amazon plans more Prime perks at Whole Foods, and it will change the industry – CNBC
- Is $119 too much to pay for an Amazon Prime membership? – RetailWire
- How will Amazon replace Whole Foods’ rewards program? – RetailWire
DISCUSSION QUESTIONS: What will be the impact of Amazon adding Whole Foods to its list of perks to the Prime program? How will it affect Amazon, Whole Foods and competitive retailers?