Amazon closed its $13.7 billion buyout of Whole Foods on Monday and has already made changes inside the grocery chain that hint at the company’s goals for the acquisition.
Upon opening Monday morning, Whole Foods shoppers saw ‘farm fresh’ Amazon Echo and Echo Dot devices for sale as well as Amazon price tags and the word ‘Echo’ spelled out in a produce display in some locations.
While these are the only devices being sold so far, it’s expected that Amazon will push Alexa for shopping purposes and even link users’ online and retail experiences to offer purchase suggestions and more.
Amazon closed its $13.7 billion buyout of Whole Foods on Monday and has already made changes inside the grocery chain that hint at the company’s goals for the acquisition
‘I was suspecting that they were going to use the stores as a showcase for not just their Amazon Fresh and Pantry but for the actual devices,’ Carolina Milanesi, an analyst with Creative Strategies, told DailyMail.com.
‘I think Echo and any device that may come in the future that is home related will fit in the context, as well as anything that uses Alexa, so you can link Alexa to your shopping.’
Customers first began noticing Echo and Echo Dot devices being in grocery chain on Monday morning, the same day the deal was finalized.
Echos were spotted for $99.99 and Echo Dots for $45.99 – while these are the same prices listed as on Amazon.com, they are down from recent prices, and it appears Amazon Echos are currently out of stock online.
Amazon has also already slashed prices on popular items such as organic avocados and rotisserie chickens by as much as 43 percent, and soon the company will begin using Prime as the rewards program for Whole Foods and even offer Price customers additional discounts.
Eventually, some Whole Foods products will be sold on Amazon’s website as well.
Lockers will also be added in some Whole Foods locations so Amazon shoppers can pick up orders or return items they don’t want.
Upon opening Monday morning, Whole Foods shoppers saw ‘farm fresh’ Amazon Echo and Echo Dot devices for sale as well as Amazon price tags and the word ‘Echo’ spelled out in a produce display in some locations
Echos were spotted for $99.99 and Echo Dots for $45.99 – while these are the same prices listed as on Amazon.com, they are down from recent prices, and it appears Amazon Echos are currently out of stock online
Amazon has said more changes are coming but won’t give details.
A spokesperson told DailyMail.com, ‘Echos are available in select Whole Foods stores.
‘Nothing else to share beyond that.’
However, Milanesi believes Amazon would sell more devices in Whole Foods stores but that it will depend on the approach the company wants to take.
‘The fire tablet may be less obvious, but it depends on what focus Amazon wants to have with linking the shopping experience’ she said, thinking Amazon is leaning toward a voice-first experience through Alexa and Echo devices.
When asked if she believes the company may ever introduce an Amazon aisle or section of the stores that focuses on device and other non-grocery items found on the e-commerce site, Milanesi said she ‘hopes they’re not going to take it to that extreme.’
A spokesperson told DailyMail.com, ‘Echos are available in select Whole Foods stores. Nothing else to share beyond that.’ However, Milanesi believes Amazon would sell more devices in Whole Foods stores but that it will depend on the approach the company wants to take
‘We are accustomed to having a health part of the store with organic foods and that kinds of stuff, so a similar experience would make sense,’ she said.
‘But it needs to link together or I think, from a shopping perspective, it starts to be more about them than about me.’
‘Your question about how much they are going to have in stores is very important.’
‘They have book stores as well now – If you look at my neighborhood they have a whole bunch of Whole Foods and an Amazon book store, so that’s where I see the Fire tablets sitting better rather than in a home environment store where Alexa could sit.’
The big opportunity for Amazon here, she believes, is not simply having 470 brick-in-mortar locations to push products, but having a way to connect consumers’ online and retail purchases and shopping habits
The big opportunity for Amazon here, she believes, is not simply having 470 brick-in-mortar locations to push products, but having a way to connect consumers’ online and retail purchases and shopping habits.
‘I think one of the steps they highlighted last week when the deal was finalized was the fact that Prime will become the reward system for shopping at whole foods,’ Milanesi said.
‘I’m expecting that aside from special deals for prime members, I hope I’ll see more recommendations for things I’m buying and linking my online and retail experiences.’
‘I’m expecting that aside from special deals for prime members, I hope I’ll see more recommendations for things I’m buying and linking my online and retail experiences,’ Milanesi said
We have already seen signs of this outside of Whole Foods.
For example, Amazon recently released a new Alexa skills that helps users combat food waste.
It lets users ask about things like tips to prevent food waste, how to properly store veggies so they last longer, and whether food has gone bad or is stills safe to eat.
Amazon has already delivered on its promise to lower prices and has already begun selling organic Fugi Apples for $1.99 per pound (down 43 percent from $3.49), responsibly-farmed Atlantic salmon for $9.99 per pound (down 33 percent from $14.99), and organic baby kale and lettuce for $3.49 (down 13 percent from $3.99).
Of all the price cuts, the drop in organic avocado prices has been the most buzzed about. The popular millennial fruit now sells for $1.99 rather than $2.79, a change that prompted many jokes online
In an experiment where Business Insider purchased 15 of the newly discounted items on Friday and again today after the price drops, the total cost dropped 23 percent from $97.76 to $78.85
In an experiment where Business Insider purchased 15 of the newly discounted items on Friday and again today after the price drops, the total cost dropped 23 percent from $97.76 to $78.85.
Of all the price cuts, the drop in organic avocado prices has been the most buzzed about.
The popular millennial fruit now sells for $1.99 rather than $2.79, a change that prompted many jokes online.
‘Thanks to Amazon, avocado-loving millennials can now afford houses,’ one person wrote on Twitter.
Another commented: ‘Secret Amazon plan: cut avocado prices 29% on day 1 of Whole Foods takeover. Millennials can now afford homes. New market for echo emerges.’