With Amazon buying Whole Foods....

[cjesser15]

Is there any chance the Chase Amazon Prime card will be able to get 5% back in Whole Foods Stores? Or is that wishful thinking? Thanks in advance.

[Anonymous]

While I imagine they will create some sort of way for the Amazon credit cards to benefit users at the stores, I don't realistically expect 5% back just for the swipe.  Profit margins on groceries are fairly slim, anyway, compared to the electronics and consumer goods that make up the majority of Amazon purchases - after all, they have to make the margin to have the ability to give it back to cardholders.

One perk I do sxpect to see is Amazon/Amazon Prime cardholders (not Chase Visas, which can already work anywhere) should eventually be able to make purchases in store with their accounts.  Which means a lot of people (myself included lol) would have to either locate that often-used-but-rarely-touched card or get a new one mailed to us...

[K-in-Boston]

The first east coast Amazon brick and mortar store is not far away from me out in the suburbs and my understanding is that they do not accept the Synchrony card, so it is very doubtful that Whole Foods will.  Whole Foods is keeping their name and CEO, so other than maybe some expansion of Amazon Fresh I don't know how much integration there really will be.

[Revelate]

I'm guessing the MCC and everything else will stay the same so it's seriously doubtful.

I don't understand the acquisition at all but I guess the market kinda liked it. 

[NRB525]

I will speculate that there will be a tie in; order on Amazon, pick up at WF and count it toward the 5%. 

Amazon has never really cared about margin when trying to disrupt an industry. Using their own store card to take the value back for those swipe fees, you may see 5% on such purchases. 

[Themanwhocan]

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@K-in-Boston wrote:

The first east coast Amazon brick and mortar store is not far away from me out in the suburbs and my understanding is that they do not accept the Synchrony card, so it is very doubtful that Whole Foods will.  Whole Foods is keeping their name and CEO, so other than maybe some expansion of Amazon Fresh I don't know how much integration there really will be.

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More variety for Prime Now deliveries will be most welcome.

[Anonymous]

To respond to the margin issue - A) Whole Foods Markups are insane anyways so even taking 10% off wouldn't hurt them.

And B) Target is also a grocery store (they sell pretty much all the groceries any other chain grocery store does) and with their RedCard they offer 5% on groceries as well on top of Cartwheel and plenty of other discounts.

So my guess is that there will be some tie in discount using an Amazon card whether that is the store card issued by Synchrony or the one issued by Chase.

[grillandwinemaster]

I believe the Amazon/Whole Foods profit margin discussion is a mute point. 

As I understand it, lthe cash back bonus is issued by the bank offering the credit card, in this case Chase, and NOT the retailer.  

The retailer could care less if you use an Amazon Visa or a Cap1 Venture to pay for your goods and services.  

[longtimelurker]

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@cjesser15 wrote:
Is there any chance the Chase Amazon Prime card will be able to get 5% back in Whole Foods Stores? Or is that wishful thinking? Thanks in advance.

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That was one of my first thoughts too!   But like others have said, probably unlikely except for the model of order on line and pick up at a store.

Many of the analysts seem to think that Amazon will get WF prices to drop to increase market share, so there will be some gain there.

[Anonymous]

Grillandwine - Target's is issued by TD Bank, not Target yet it still provides a 5% discount on everything including groceries so why is unreasonable to think they may issue some kind of discount (maybe 3%) for using it at Whole Foods