Now at Whole Foods: Cheaper milk, ‘farm fresh’ Amazon Echo
NEW YORK — A half-gallon of milk was 50 cents cheaper at a Whole Foods in New York. Ground beef was down by $2 a pound. And an organic avocado cost a buck less.
Amazon kicked off its first day as the owner of Whole Foods by slashing prices, adding its logo on signs and setting up a stand of “farm fresh” Amazon Echo voice-assistant devices by store entrances. It’s just the first taste of the moves the e-commerce giant will make at the organic grocer after it completed the $13.7 billion deal on Monday.
More changes are coming: The company aims to make Amazon Prime the rewards program at Whole Foods and some Whole Foods products will show up on Amazon’s site. The deal could also spur big changes in how people shop for groceries overall.
Amazon already lowered prices Monday at Whole Foods on a range of items, including rotisserie chicken, organic eggs and baby kale.
Whole Foods had been just starting to test a loyalty program. But soon, shoppers at all stores will be able to tap Amazon’s $99-a-year Prime program to get discounts at stores. And they will eventually be able to buy some Whole Foods products from Amazon.com. Lockers will be added in some locations so Amazon shoppers can pick up e-commerce orders or return items they don’t want.
Amazon said those changes were just the beginning, but didn’t give details on what more is coming.
The deal finalized Monday gives Amazon more than 465 physical stores in the U.S., Canada and the U.K. Before the acquisition, Amazon had a small brick-and-mortar presence with less than a dozen bookstores, a prototype convenience store in Seattle and pickup locations in some cities near college campuses. The tie-in may also give the Seattle-based company valuable data on how people shop in stores, where the vast majority of retail sales still take place. Amazon is an expert in using data on past purchases and browsing to offer suggestions that might make people buy more, and could start applying that in stores as well as online.
But despite the price drops, Whole Foods may still be pricier than the competition. At a Philadelphia Trader Joe’s, a dozen extra-large organic eggs were selling for $3.69 on Monday, 30 cents lower than large organic eggs at a Whole Foods store less than a mile away.