Amazon Prime Day will take a bite out of the food business as Whole Foods is included

Amazon.com Inc. includes Whole Foods Market in its annual Prime Day shopping this year, a move that will put pressure on grocery stores with other retailers.

Amazon

AMZN, -0.86%

says Prime Day, which will last 36 hours starting July 16 at 3 pm. AND, will include seasonal discounts for members as well as previously announced discounts. Amazon said it was buying Whole Foods in June of last year, so the natural and organic grocer was not included in the 2017 Prime Day event.

Read: Amazon Prime Day (and a half) will begin July 16, and includes Whole Foods

"With Whole Foods now in the picture, we expect promotions Prime Day expands, "said Charlie O. Shea, senior analyst at Moody's.

A survey conducted in June among adults working in the food and beverage industries Food by Phononic with the help of Regina Corso Consulting revealed that 54% identify Amazon as the biggest disrupter of the retail business, and 83% state that Amazon's food offerings are a threat for traditional grocery stores More than one-third (35%) of food executives prepare for Prime Day rebates [19659002] Pre-acquisition, the biggest complaint regarding Whole Foods was pricing, its reputation "Whole Paycheck" persisting despite the efforts of the company to dispel it.

Prime Day discounts will reduce the price-fixing hurdle, according to Ryne Misso, marketing director at Market Track, a commercial information company.

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"Prime Day is the perfect setting for Amazon to drive more lawsuits and the adoption of Whole Foods among their loyal main base, "Misso m said. "Amazon has already launched highly competitive promotions at Whole Foods – like mid-long spare ribs last week – to attract new customers to the door. Add 10% off qualifying items with your Premium membership, and Amazon has already eliminated some of the cost barriers that have prevented customers from consuming Whole Foods in the past. "

Prime Day also has a halo effect for other retailers." Mass merchants saw their sales jump 124% on Prime Day 2017, according to data provided by ad-tech company Criteo

CRTO, -1.31%

while retailers who ignored Prime Day increased by only 5%.

"Retailers who anticipate 24-hour Amazon Prime Day are the ones who benefit the most," says the Criteo report. "Minimizing the refresh before the big event will maximize your ability to compete with Amazon on the First Day."

However, with the first day extended this year, it will be difficult not to offer an incentive to drive customers.

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"L & # 39; announcement from Amazon that Prime Day will extend 36 hours from 15 hours. EAST, July 16, is increasing the pressure on the entire retail industry, with "countermeasures" that will certainly have a negative impact on margins across the industry, "said Moody & # 39; s O Shea. "More than ever, we anticipate that other retailers will deploy a healthy dose of promotions before, during and after Prime Day in the hope of attracting buyers and dollars, while at the same time boosting the quality of life. other disputed retailers will face a difficult decision.

Amazon shares climbed 79% last year, while the S & P 500 index

SPX, -0.23%

is up 12.4% for the period.