Amazon Prime chooses Florida for new Whole Foods discounts

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Amazon now has more than 100 million Prime members.

Amazon has linked its Prime program with its first batch of Whole Foods Market stores, offering members of the shoppers' program a 10 percent discount on sale items and other deals on select grocery items. But you'll need to be a Prime member to get the deal.

Amazon cut prices at Whole Foods for all customers once it completed its purchase of the chain in August, and announced another round of price cuts in November.

Sucharita Kodali, an analyst at Forrester Research, said the discounts were likely to hurt the profit margins at Whole Foods - but that was besides the point if the move strengthens Prime, a major focus of Amazon these days.

The savings are rolling out initially to the Whole Foods stores in Florida, but will expand to all U.S. Whole Foods Market and Whole Foods Market 365 stores this summer.

For instance, this week in Florida, wild-caught halibut steaks will be $9.99 a pound, about half the regular price. The company says it ultimately plans to make Amazon Prime the Whole Foods Market customer rewards program.

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Amazon says the sale-item discount will apply to a rotating selection of hundreds of products. Alternately, they can opt in to use their phone number at checkout, if preferred.

The discount program is Amazon's latest effort to connect the two companies.

Items eligible for additional Prime member discounts will be designated by special signs in Whole Foods stores.

The companies also launched two-hour delivery from Whole Foods via Amazon's Prime Now service in 10 cities across the USA, with more to come this year, Amazon says.

Amazon has fired another shot across the supermarket industry's bow. That translates into a big opportunity to boost Whole Foods' business, if Amazon can use the new discounts to bring more people into stores.