Day One: Amazon makes its presence known at Whole Foods stores

Amazon found a savvy way to remind customers that it now owns Whole Foods Market.



On its first day as the owner of the natural foods grocer, Amazon positioned its Echo voice-assisted speaker as one of Whole Foods’ featured “Pick of The Season” discounted products. The deal slashes prices down to $99.99 for a full-size speaker, and $44.99 for the Echo Dot, according to The Verge, which highlighted a tweeted photo of the in-store ad.



And as promised, Whole Foods lowered prices on a selection of its best-selling grocery staples across its stores, with the price cuts reportedly broader than the retailer previously announced.



Looking ahead, Amazon and Whole Foods’ technology teams will begin to integrate Prime into Whole Foods' point-of-sale system. When the project is completed, Prime members will receive special savings and in-store benefits at Whole Foods. The two companies will continue to invest in additional areas over time, including in merchandising and logistics, to enable more lower prices for Whole Foods customers.



The partnership could also improve Amazon’s returns operation — a process that typically required customers to make trips to the post office or dedicated Amazon lockers.



“These trips include long wait times, and inconvenient locations or hours of operation,” Tushar Patel, CMO, Kibo. "With this acquisition, these friction points will no longer exist, as customers will be able to utilize the weekly trip to the grocery store to also take care of their returns at the same time. Additionally, Whole Foods stands to bring in additional foot traffic by providing the ability to pick up or return in store, which will sway grocery customers who don't typically visit Whole Foods.”