Customers will be able to take advantage of lower prices on bananas, organic avocados, brown eggs, organic salmon, animal-welfare-rated 85% ground beef and other staple food items.
The planned price cuts would have been a tough sell to Whole Foods' investors, who had grown used to fat profits from the upscale chain, but are more in line with Amazon's broader strategy of sacrificing short-term profit for long-term market dominance. Whole Foods private labels like 365 Everyday Value, will be available for anyone to purchase online through Amazon.
By buying Whole Foods, Amazon is taking a bold step into brick-and-mortar, with its more than 460 stores and potentially very lucrative data about how shoppers behave offline. Under the acquisition, Amazon and Whole Foods plan to roll out lower prices for more popular products in the days to come. The deal received regulatory approval from the Federal Trade Commission - as well as a green light from Whole Foods shareholders - on Wednesday. "We can't wait to start showing customers what's possible when Whole Foods Market and Amazon innovate together".
"There was never any doubt that Amazon would lower prices, and even offer further discounts in-store to Prime members", said Baird Equity Research analyst Colin Sebastian.
Whole Foods Market started in 1980, a natural food supermarket which -through its pursuit of excellent quality and dedication to its mission - has grown into a world leader in natural and organic foods.
A major boon: 90% of Amazon Prime subscribers live within 10 miles (16 km) of a Whole Foods store.
Today, millions of consumers get lower prices and other perks in exchange for favoring one store chain over another.
As consumers grow more comfortable doing their grocery shopping online, Amazon is hoping that Whole Foods customers will become Amazon Prime customers. The move sends a clear message to the U.S. grocery industry-Amazon is ready to begin its foray into the market in much the same fashion.
The Whole Foods Market on Westlake Avenue near Amazon's Seattle campus.
Wilke said Amazon will "continuously lower [Whole Foods'] prices as we invent together". For example, if a Amazon Prime customer goes in to purchase something like organic salmon, they may see ads online later for lemon that would taste really good on that salmon previously bought. The e-commerce giant has little interest in premium margins.
Local grocers expressed some trepidation about Amazon's aggressive entry into their business, but said it was part of a long history of upheavals and competition.
This addresses probably the singular complaint with the healthy grocery chain.
"I've been in retail since I was a kid, and I'm always nervous, " he said. "But at the end of the day, you just have to try and get the freshest corn out there on the sidewalk".