Amazon.com (NASDAQ:AMZN) will extend its corporate staff programs, including pay structures and benefits, to U.S. corporate employees at Whole Foods.
The company announced Wednesday that it will fully align benefits for all grocery unit corporate staff by December 2026, while Whole Foods employees will keep their in-store discounts until then.
Amazon will also grant Whole Foods corporate employees a 10% discount on its merchandise and access to employee deals on services like phone plans, car insurance, and travel through its online portal, Reuters reported on Wednesday.
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Whole Foods employees will have about a month to review updated job titles, salaries, and benefits, the Wall Street Journal reported on Wednesday.
Amazon aims to strengthen its U.S. grocery operations, expand Prime’s fast delivery for perishable goods.
Bank of America’s Justin Post and Wedbush’s Scott Devitt pronounced Amazon’s nationwide grocery delivery expansion as a major step in its retail strategy backed by its ability to scale perishable delivery and compete with players like Walmart (NYSE:WMT) and Instacart (NASDAQ:CART).
Post noted a $90 billion revenue opportunity if Amazon closes the gap in online grocery penetration, while Devitt called the rollout a pivotal move that addresses long-standing logistical hurdles and strengthens Amazon’s competitive edge in the largest retail category.
Amazon has earmarked over $4 billion to expand its delivery network by the end of 2026, prioritizing small towns and rural areas. Since acquiring Whole Foods for $13.7 billion in 2017, Amazon has cut prices and integrated Whole Foods groceries into its Prime subscription, signaling a deeper push into the grocery sector.
Price Action: AMZN stock is trading higher by 0.17% to $229.11 at last check Wednesday.
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