Article Friday, May 4, 2018

The democratisation of Wholefoods (as long as you’re a Prime member!)

We should stop being surprised by the boldness of Amazon’s actions – but their latest move to offer 10% discount on Whole Foods items (and free delivery) to Prime members is a pretty striking one.

Not only does this fundamentally shift Wholefoods affordability, it also creates a huge impetus for consumers to sign up to a Prime service that many were starting to question the price of.

It should be obvious, but at $800bn the Grocery market is clearly the biggest untapped opportunity for Amazon – and it’s the frequency and level of consumer spend that also make it the perfect accelerant for Prime subscriptions.

Whether the 10% discount makes long term economic sense will be interesting to watch – but the potential from democratising Wholefoods is massive and no doubt this is the bigger prize that Amazon have their sights set on.

Key Contacts

James George

James George

Partner

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