Amazon (AMZN) Extends Prime Benefits To Whole Foods Stores
Zacks Investment Research | May 30, 2018 10:29PM ET
Amazon (NASDAQ:AMZN) has recently announced the availability of Prime Whole Foods discount at 121 Whole Foods Market (NASDAQ:WFM) stores located across 12 U.S. states. This move is in sync with its focus to strengthen presence in the retail sector.
The move enables Prime members to avail an additional 10 percent discount on their purchases along with special weekly off on selected purchases made at these stores. Notably, the initiative was first rolled out in Florida.
The offer will be accessible at the stores across 12 U.S. states. At present, Prime members can benefit from the offer at Whole Foods Market 365 stores nationwide and the stores located in Florida, Idaho, Kansas, Kansas City, Missouri, Arkansas, Colorado, Texas, Utah, Northern Nevada and Northern California.
We note that the expansion of the ongoing 10 percent discount across additional Whole Foods store is likely to drive the subscriber base of Prime, consequently aiding the revenue generation of the company.
Coming to the price performance, shares of Amazon have returned 39% on a year-to-date basis, outperforming the Amazon.com, Inc. Quote
Prime — Key Catalyst
Amazon is continuously making efforts to expand its Prime business globally. Last year, Prime was launched in the Netherlands and Luxembourg along with an added facility for customers in Belgium to join Prime and shop in Dutch. The company also introduced Prime in Singapore.
Last month, Jeff Bezoz revealed the number of paid subscribers for Amazon Prime. The figure has crossed over 100 million worldwide since its inception, which is a positive.
Additionally, Prime members in the United States have started receiving unlimited free two-day shipping on over 100 million different items.
The company also offers 5% cash back benefit to prime members who use Amazon Prime Rewards Visa card while shopping at any Whole Foods store.
We believe Amazon’s strong focus toward enhancing Prime service with the help of exciting discounts, free deliveries within a short period of time, FBA strategy, expanding movies and video portfolio and many more will continue to help it to improve customer base and encourage Prime membership.
Currently, Amazon sports a Zacks Rank #2 (Buy). You can see Original post
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