Amazon has launched a new program at Whole Foods Market, offering Prime members an additional 10% saving off sale items and deep-discounts on selected items.
National roll-out will start this summer
This new program has launched at stores across Florida, with the roll-out to all locations, including Whole Foods Market 365 stores, starting this summer. Each week, Whole Foods Market has several hundred products on promotion which will be eligible for the additional discount. The retailer will also offer exclusive promotions to Prime members, with some of the initial deals featuring buy-one-get-one free offers and half-price products. Prime member deals will be prominently featured in-store and accessed through the Whole Foods Market app.
Source: IGD Research
Momentum building with new initiatives
This is the latest initiative launched by Amazon at the Whole Foods Market stores it acquired last year. Earlier this year, its launched free two-hour delivery on groceries through Prime Now in 10 cities and a 5% cash back program on purchases made though the Amazon Prime Rewards Visa Card. Amazon lockers have also been introduced into the stores, while selected locations feature a range of Amazon devices.
Understanding the ‘new retail’ model
This new program addresses the perception that many consumers hold with regards to Whole Foods Market’s pricing. This should help improve its competitiveness and drive traffic. Through offering the discount to Prime members, not only will it encourage new sign-ups, but will provide Amazon with visibility into the in-store purchases of its members. This will enable it to offer more personalised offers in the future, particularly as it gains new insights into the interaction between online and offline shopping behaviours.
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Stewart Samuel, Program Director, IGD Canada: based in Canada, Stewart heads up all of IGD's research and coverage on the US market. He is also responsible for shaping IGD's research program across North America. Contact Stewart at [email protected] for further insight on the region's markets, channels and retailers. Follow Stewart on Twitter: @Stewart_IGD
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