Foot traffic to Whole Foods Market grew 17 percent year-over-year the week of the price cuts instituted by new parent company Amazon, and remained up 4 percent three weeks later, according to a research report from alternative data-intelligence firm Thasos Group.
Other key findings of “Competitive Impact of Lower Prices at Whole Foods,” which analyzed numbers, composition and behavior of new customers at Whole Foods stores following major price reductions upon the chain’s acquisition by Amazon.com, included:
- Walmart’s regular customers made up the largest percentage – 24 percent – of Whole Foods’ new customers in the week of the price cuts.
- Among Whole Foods’ rivals, Trader Joe’s experienced the highest rate of customer defections: on average: Almost 10 percent more daily customers of Trader Joe’s went over to Whole Foods in the week of the price cuts, compared with the week prior. The same calculation for Sprouts came to 8 percent.
- Whole Foods’ new customers overwhelmingly belonged to the same upper-income demographic as the grocer’s traditional customer base. New shoppers in the week of the price cuts came from the richest segment of each rival store’s customer base.
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