Last year, Amazon acquired Whole Foods for a sum of $13.7 billion. In April this year, the company announced that it would be offering discounts to its prime customers at Whole Foods. The discounts would include a 10% off the price of Whole Foods items plus other weekly discounts. The company first launched the program in Florida but now it is rolling out the same to 12 more states. These are Utah, Texas, Oklahoma, California, Nevada, New Mexico, Louisiana, Missouri, Kansas, Idaho, Colorado and Arkansas. The end goal, according to Amazon, is to spread the program throughout the whole country.
The program is part of Amazon’s strategy to encourage customers to sign up for its Prime services
Amazon has been fronting the use of its Prime services among customers. The company has been offering packages that are meant to encourage customer to sign up for Prime. In addition, the acquisition of Whole Foods Market was meant to steer the use of Prime. Currently Whole Foods has a total of 470 stores spread in the U.S., U.K and Canada. The largest number of the stores i.e. 463 is located in the United States. The e-commerce giant has announced the discount will cover all the Whole Foods Market 365 in the United States.
In addition, customers who use Whole Foods delivery service will also be eligible for the discount. The Whole Foods delivery service is part of the Amazon app. Members of Amazon’s Prime services get all orders that are $35 and above delivered for free. The service has a two-hour delivery window.
A replacement of the in-store loyalty program
Since the acquisition of Whole Foods, Amazon scrapped its in-store loyalty program. Shoppers have been on the pause waiting to see if the company will come up with a similar program. For a long time after its inception, Amazon had not revealed the number of people using Prime. However, during the annual shareholders conference, Jeff Bezos, the CEO of Amazon revealed that the service has more than 100 million users. He further revealed that the company is working on the technical and innovative side so as to come up with more ways to offer the benefits of Prime to Whole Foods in the country.
After the acquisition, the role of determining products and prices for individual stores shifted from the regional stores and taken over by Whole Foods’ headquarters located in Texas. It is them implemented to individual stores throughout the country.