Whole Foods revealed today that Amazon has made hundreds of the grocer’s 365 private-label products available for shipping throughout the U.S., which is free for Amazon Prime members.
Rachel Bukowski, spokesperson and team leader of product development for Whole Foods Market, confirmed that shelf-stable, non-perishable private-label items will be offered through Amazon. Available products include pantry staples like rolled oats, pasta, coffee, and tea. Refrigerated and frozen items will still have to be purchased and delivered directly from Whole Foods.
As with other Amazon products, the offerings can be automatically purchased at regular intervals at a discount with the “Subscribe and Save” feature.
"From the start, Amazon and Whole Foods Market promised to make high-quality, organic foods more affordable and accessible for everyone. Since the acquisition, we have made the largest investments in our company’s history to lower prices on hundreds of customer favorites," Bukowski told SFA News Daily. "By adding our 365 by Whole Foods Market brand to Amazon.com we’re excited to reach even more areas where our stores may not be located, and continue to share high-quality, value-driven products with new consumers across the country."
This news comes at a time when Amazon is rethinking its grocery strategy. Earlier this year, Amazon CEO Andy Jassy said in a letter to shareholders that the company plans to nurture the Amazon-owned grocer while finding a way to grow its mass grocery business in general.
“Whole Foods is on an encouraging path, but to have a larger impact on physical grocery, we must find a mass grocery format that we believe is worth expanding broadly,” said Jassy. “Amazon Fresh is the brand we’ve been experimenting with for a few years, and we’re working hard to identify and build the right mass grocery format for Amazon scale. Grocery is a big growth opportunity for Amazon.”
Amazon plans to unify its ecommerce operations, combining Whole Foods and Amazon Fresh, according to a recent Bloomberg report. The decision to merchandise Whole Foods’ 365 brand on its platform is a step in that direction.
Other indications of the ecommerce giant’s transformation strategy include the decision to layoff hundreds of employees in a corporate restructuring process that eliminated the zone lead role from Amazon Fresh stores, a lower-level management position. On Wednesday, the service also made Amazon Fresh grocery delivery available to those without Amazon Prime memberships for a fee in select U.S. cities.
On the brick-and-mortar side, after closing many Amazon Fresh locations in the U.S. and U.K. throughout the year, the company revealed Thursday the redesign of two Chicago Amazon Fresh stores, featuring new smart grocery cart technology, and an extended selection of lower-priced grocery items.
Related: DoorDash to Open San Jose Ghost Kitchen; ICYMI: Top Stories From July
Image: Whole Foods