Whole Foods, Amazon Slash Over 20% In Prices, Prime Members Get More Discount

Come Wednesday, Amazon fresh price cuts will take effect at Whole Foods and customers will get at least 20 percent savings on hundreds of items.

The price cuts will make Whole Foods’ greens, tomatoes, and tropical fruits more cost-effective.

In a joint statement, the companies said, “Customers can save hundreds of millions of dollars through lower prices and Prime member deals” and the new “ price reductions will build on the hundreds of lower prices that have been introduced to customers since the Amazon and Whole Foods Market merger.”

Amazon took over Whole Foods in July 2017 with a “vision of making Whole Foods Market’s high-quality, natural and organic food affordable for everyone.”

One underlying strategy of the acquisition has been converting Amazon Prime members into Whole Foods shoppers. By aligning Whole Foods in-store shopping with Amazon Prime, Amazon was aiming the broad promotion of deals, ads, and promotions.

New price cuts to go beyond Prime

The new price cuts aim beyond Amazon prime customers. “Whole Foods Market continues to maintain the high-quality standards that we've championed for nearly 40 years and, with Amazon, we will lower more prices in the future, building on the positive momentum from previous price investments,” said CEO John Mackey.

Amazon Prime members’ bonanza will be doubling of weekly deals plus an additional 10 percent off on “hundreds of sale items.”

Prime members in metro areas will be offered free Whole Foods grocery delivery if they spend more than $35.

In price reductions, Prime members will be eligible to find “double the number of exclusive weekly Prime member deals and deeper discounts,” noting that “customers can expect more than 300 Prime member deals on some of the season’s most popular items.”

In a bid to drive more Prime members to Whole Foods, Amazon is extending exclusive deals including loyalty discount of an additional 10 percent off on sales prices. Those members with Amazon Prime Rewards Visa will be eligible for 5 percent cash back on Whole Foods purchases.

During the price cuts from Wednesday until the end of April incentives for trying Amazon Prime free for 30 days at www.amazon.com/WholeFoods will be $10 off on purchase of $20 or more.

Amazon’s own grocery stores coming

Meanwhile, Amazon is also toying with the idea of opening own grocery stores across major U.S. cities beyond the label of Whole Foods. The aim is to offer products at a cheaper rate than Whole Foods in beauty and health items.

Amazon’s intent is to step beyond Whole Foods' affluent customer base.

On price reductions, Amazon has been under pressure to cut prices after Walmart, Costco and Kroger slashed prices. The rapid expansion of German discounters Aldi and Lidl in the United States also added to that compulsion.