Earlier, the Prime members were offered discounts after the company acquired Whole Foods nearly two years ago, which was later complemented with free delivery of grocery to the premium customers at select stores. With more benefits and additional facilities in the offing for Prime members, the stores are expected to witness heavy footfall once opened.
Indian govt delivers Amazon, Flipkart a rude shock with new e-comm rule
Moreover, the company intends to operate on thin margins to attract customers and compete more effectively with Walmart (WMT) and Kroger (KR), the traditional retailers who are under pressure due to Amazon’s increasing presence in the brick-and-mortar retail space. Amazon’s unique offers like speedy grocery delivery and pickup service have been a cause of concern for the others.
Amazon shares dropped slightly in the aftermarket trading Wednesday, after closing the regular session up 3%.