Whole Foods Adds 10% & Other Amazon Discounts But Is It Enough?
With a push to convert Whole Foods Shoppers to Prime Members, Amazon introduces a unique competitive pricing strategy that offers a variety of discounts exclusively for Prime members.
The biggest advantages are the additional 10% off sale items and weekly Prime member deals on select best-selling items. For example, wild-caught halibut steaks are priced $9.99/lb. for Prime shoppers and $19.99/lb. for non-Prime shoppers. On top of that, eligible Prime members can receive 5% back on purchases at Whole Foods when using their Amazon Prime Rewards Visa Card.
With this new discount program in place, Whole Foods hopes to accomplish three things.
1) Consumers start associating savings and competitive pricing to Whole Foods.
Even without noting the final price on the shelf consumers will start to correlate savings and Whole Foods based on the signage, 10% discount, exclusive Prime deals and 5% cashback from their Visa Prime Rewards Card.
2) Increase Prime Memberships for Whole Food Shoppers.
Shoppers are always looking for a good deal. This creates enough incentive for those Whole Food shoppers that are on the fence to become an Amazon Prime member and pay the $119 membership fee.
3) Entice a new shopper demographic to try out Whole Foods.
Per contra, this tempts current prime members to try shopping at Whole Foods versus shopping at their local supermarket now that their dollar will go further than ever before.
Amazon offers plenty of services and benefits to their members: music, video, Amazon Lockers, free same-day delivery, and the list seems to go on and on. However, with this latest tactic, we’ll have to wait and see how it plays out with shoppers. If it catches on look for traditional grocers to borrow a page or two out of Amazon Whole Foods playbook.