Amazon is giving Prime members a 10% discount at Whole Foods

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Amazon is giving Prime members a 10 percent discount on some sale items at Whole Foods markets, as well as weekly discounts on popular items.

The online retail giant said it would knock 10% off already discounted items and each week cut prices on other products throughout the store. Some of the savings examples cited include wild-caught halibut steaks at half-price, organic strawberries at $2.99 ($2 cheaper than normal), and buy-one-get-one-free deals for Whole Foods' sparkling water. The more data the company has from its customers, the more it can strategically offer deals when purchases have weakened.

To counter the growing threat from Whole Foods and German discounters Aldi and Lidl, Walmart has pledged to continue offering low prices to shoppers at its 5,000-plus US stores.

Morgan Stanley analysts say the price break could actually make Whole Foods, often dubbed "Whole Paycheck" a less expensive option than most traditional grocery stores.

Whole Foods is starting a new loyalty program with special discounts for Amazon Prime members.

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Amazon also has introduced 5 percent back in rewards for purchases at Whole Foods Market with the Amazon Prime Reward Visa credit card.

By using the app, customers can log in using their Amazon Prime usernames and passwords, which will generate a QR code that the Whole Foods cashier can scan at checkout to apply any savings they might have earned.

Amazon bought Whole Foods in 2017.

The Whole Foods location in Seattle's South Lake Union neighborhood, just blocks from Amazon's headquarters in Seattle. It also announced it would raise the annual cost of membership by 20% to $119 a year, from $99.

Early moves by AMZN to leverage its Whole Foods ownership were relatively low-key. As CEO Jeff Bezos revealed in his most recent letter to shareholders, the service has more than 100 million members globally. Amazon already has nearly unbridled power over the retail industry, and growing power over food, shipping, entertainment, cloud computing, and more.

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