Whole Foods Markets stole more customers from Walmart Stores than any of its competitors after it cut prices following its Amazon takeover, according to fresh data published Tuesday, but the upscale retailer is still relying on wealthier shoppers.
Thasos Group, a research firm that uses mobile phone location data, said Whole Foods’s foot traffic increased by 17% in the week that began on August 28, the day the $13.7 billion Amazon deal closed, when compared to the same period last year. That slowed to around 4% by September 16, Thasos said, but remained “elevated” compared to the weeks prior to the takeover.
“Whole Foods new customers overwhelmingly belonged to the same upper income demographic as the company’s traditional customer base,” Thasos said. “Defecting customers in the week of the price cuts came from the wealthiest segment of each competing store’s customer base.”
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