Now that Amazon’s (AMZN - Free Report) purchase of Whole Foods is official, what changes can the organic grocers' customers expect, and how might Amazon users benefit from the merger?
On Wednesday, the Federal Trade Commission approved Amazon’s $13.7 billion acquisition of Whole Foods, which was first announced in mid-June. And the news caused grocery store stocks to plummet on Thursday.
But, aside from helping send shivers down grocery store investors’ spines, and adding roughly 470 organic grocery stores to its ever-growing list of diversified assets, what will Amazon really change about Whole Foods?
The Texas-based chain’s natural and organic foods often come with hefty price tags. So one of Amazon’s first steps, which will begin as soon as Monday, is to lower Whole Foods’ prices.
“Everybody should be able to eat Whole Foods Market quality – we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” CEO of Amazon Worldwide Consumer Jeff Wilke said in a statement.
On top of that, Jeff Bezos’ company will incorporate Amazon Prime into Whole Foods’ point-of-sale system. Prime members will then eventually earn unique in-store benefits and savings opportunities.
The company will also make Amazon Prime the grocery store’s customer rewards program. “The two companies will invent in additional areas over time, including in merchandising and logistics,” according to the statement.
Here are some other highlights from the official Amazon, Whole Foods announcement—minus the extensive list of soon-to-be lower priced food items:
- In the future, after certain technical integration work is complete, Amazon Prime will become Whole Foods Market’s customer rewards program, providing Prime members with special savings and other in-store benefits.
- Whole Foods Market’s healthy and high-quality private label products—including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch—will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.
- Amazon Lockers will be available in select Whole Foods Market stores. Customers can have products shipped from Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.
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