Amazon flexes its muscle at Whole Foods
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Amazon is moving fast on its acquisition of Whole Foods -- today the company started offering big discounts for Amazon Prime members in store, giving yet another reason to pay for its monthly subscription.

Not only are things like turkeys discounted to a few dollars, hundreds of other items in the company's "everyday" range like vegetables and chicken are now on a permanent price cut if you're a member of Amazon's subscription service.

It was always obvious that Amazon sees Whole Foods as the gateway to the rest of America where Amazon Prime already sees more than half of all US households using the service, but the pace here is impressive. I'm watching to see how long it takes Amazon to try re-imagine the entire concept, which I expect we'll see within 1-2 years.

What I wonder about most from this deal is what the end-point is here: at some point do these stores go all-Amazon-exclusive, where you need a subscription to even shop there? Or will we end up in a music streaming style stand-off where we can't get discounts anywhere that our subscriptions don't cover, and 'exclusive food items' are sold at specific chains?

Amazon is going to get a ton of great benefits out of this acquisition long term: an unprecedented amount of data that no grocery chain has ever collected on its customers and an opportunity to innovate within the supply chain of an existing brand.

There's a reason people suspect supermarkets might be in trouble: most existing brands aren't digitally savvy and don't know anything about their customers. The business is so low-marginthat there's not much space for innovation without justification, but Bezos has such deep pockets it doesn't matter how outlandish the concept is.

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