Dive Brief:
- Amazon Fresh has rolled out new discounts for Prime members at its stores, offering 20% off a rotating array of groceries and prepared foods, the company announced earlier this week. The discounts kicked off Wednesday and will be around for the “foreseeable future,” Amazon noted.
- Some of the items included in the initial discount round are grass-fed ribeye steaks, Sabra hummus, Hidden Valley Ranch dressing, Fresh brand frozen shrimp, and 365 by Whole Foods Market brand trimmed Brussels sprouts.
- Amazon Fresh is looking to juice traffic to its stores as Amazon’s Prime Day approaches and ongoing inflation continues to drive consumers’ shopping decisions.
Dive Insight:
Prime membership remains the ace card Amazon likes to play when it’s looking to drive traffic to its various store properties.
Not long after acquiring Whole Foods in 2017, the company rolled out waves of steep product discounts for Prime members along with free delivery — an e-commerce perk that Whole Foods canceled last year. At Amazon Fresh stores, free delivery and pickup remain perks for Prime members as the new chain rapidly expands across the country.
Now, Amazon Fresh stores have introduced 20%-off discounts that could boost the chain’s value image as price sensitivity among consumers continues to rise. A company spokesperson noted that stores will offer the double-digit discount on “everyday essentials” across various departments. In addition, it will offer the savings on a weekly rotating assortment of prepared foods like sandwiches, soups, pizza and sushi.
To use the discount, shoppers scan their Amazon app when checking out or pay with a credit card that’s linked to their Prime account.
The latest Prime discounts at Amazon Fresh stores indicate the e-commerce giant sees its budding grocery chain and its membership program benefiting each other, Coresight Research wrote in a report issued this week.
“The introduction of year-round Prime discounts as part of Prime Day promotion is a sign of Amazon seeking to further integrate Amazon Fresh stores into the Prime membership ecosystem,” the report stated.
Amazon will introduce additional discounts to its stores from July 6-19 as part of its Prime Day promotion. Deals will include $1 products, buy-one-get-one offers and other discounts, according to the company’s website.
During last year’s Prime Day promotion, which spanned two days in late June, 16% of shoppers who made purchases from Amazon during the period also bought groceries, according to data from Numerator. On Thursday, Numerator estimated that Amazon’s CPG market share will surpass 20% for the first time during this year’s Prime Day, which commences at midnight Pacific Daylight Time on July 12 and runs through July 13, driven by high consumer awareness of the event.
