Fish sales at a Whole Foods store. (Photo: Whole Foods)

Whole Foods manages to make salmon consumers abandon its competitors

After Amazon purchased Whole Foods, its price slashing strategy, from fresh fish to produce, led to an increase of customers 'stolen' from its competitors.

The USD 13.7 billion purchase of Whole Foods was completed in late August. Since then, Amazon has slashed the prices of dozens of items, including fresh Atlantic salmon, at all 460 of its new grocery stores.

Data analytics firm Thasos Group stated that foot traffic to Amazon's new grocery store jumped 17 per cent during the week that Whole Foods cut its prices, compared to the same week a year earlier, MyTwinTiers reported.

Walmart and Kroger accounted for a combined 40 per cent of new customers to Whole Foods between August 28 to September 3. Regular shoppers of Sprouts and Target also shifted loyalty, but it was Trader Joe's that was hit the hardest: Nearly 10 per cent of its regular customers went to Whole Foods that week.

Customers appear to be sticking around after the price cut. Although the initial surge to Whole Foods has slipped, foot traffic remains up 4 per cent for the week ending September 16.

Thasos analysis shows that the price cuts did not attract customers from lower incomes and that Whole Foods may have shed its "whole paycheck" moniker, but its new shoppers are still coming from the wealthiest demographics.

The data analytics gathered the information using customers' mobile phone locations.

Related article:

- Amazon to buy Whole Foods Market for USD 13.7bn

 
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