On Wednesday, May 30, Amazon expanded its Prime member savings into 121 Whole Foods Stores in 12 states, as well as to all Whole Foods Market 365 stores nationwide. The move will spread the discount from just its stores in Florida to locations including Arkansas, Colorado, Idaho, Kansas, Kansas City, Missouri, Louisiana, New Mexico, northern Nevada, northern California, Oklahoma, Texas, and Utah. Prime members will receive exclusive deals as well as an additional 10% off sale items.
Amazon announced the discount program at its Florida stores on May 16, saying at the time that it planned to expand it to all Whole Foods Market and Whole Foods Market 365 stores across the country starting this summer.
"I think it's a needle mover," said Tom Forte, senior research analyst for D.A. Davidson, on Wednesday, of the program's expansion. "When Amazon has a strategy, if they expand it, that means they like what they're seeing."
Amazon and Whole Foods rocked the retail world last June with the news that the online retail giant was spending $13.7 billion to purchase the Austin-based grocery store chain. After the acquisition, store traffic at Whole Food spiked last September, but then slowed down in October generating some concern on whether this deal was a dud.
Amazon's announcement comes on the same day as Walmart Inc.'s (WMT - Get Report) annual shareholders meeting in Arkansas. The Bentonville, Ark.-based chain quietly continues to dominate the grocery store sector, especially via online deliveries. In the past three months, however, Amazon has expanded its grocery delivery services to 10 major cities, offering two-hour delivery windows. And the company plans to continue spreading the service throughout 2018.
Prime members who want to take advantage of the new discount at Whole Foods will need to use the Whole Foods Market app and scan the Prime Code discount on their phone when checking out.
-Reported and written by Oscar Gonzalez