Amazon has just sold $1.6 million of Whole Foods products this month on their online store. During the last month, 19% of Whole Food's sales were of snacks and candy, closely followed by fruit, vegetables, condiments, and health and beauty.
Amazon completed $500,000 in online sales in the first week after it started offering Whole Foods’ “365 Everyday Value” products, according to the One Click Retail, an e-commerce data analytics firm that focuses on the site’s transactions. Weekly sales fell to about $300,000 for the next two weeks after Amazon ran low on some products but rebounded in the fourth week, the analysis found.
Amazon provides Whole Foods products with the potential for a new mass market platform. The only issue is, the sales are tiny compared to the $8 billion in sales averaged by Amazon every month.
Third-party data showed an increase in traffic as curious shoppers flocked to Whole Foods stores several days after the price cuts took effect, but the surge subsequently subsided. It will take additional measures to turn around Whole Foods’ two years of steady sales declines, Mr. Goldin said.Spurred by Amazon’s entry, August traffic at Whole Food stores was up 10% from the year’s monthly average through July, according to location-based data compiled by the inMarket mobile analytics firm. Traffic is projected to be 4% below average in September, it found.
What Amazon seems to have gained most from their purchase is the private label obtained from Whole Foods. Nowadays, grocery profits are driven mostly by brand recognition and brand equity. American consumers as a whole are looking for healthy foods sold under private labels. Around 85% American consumers are open to trying private-label goods. As such, grocers around the country are scrambling to maintain competition, however, with Amazon's massive price discounts it proves to be difficult.
So, what do you guys think of Amazon's implementation of Whole Foods into their sales platform? Has anyone personally tried Amazon's online Whole Foods options? How is the future looking for Whole Foods?
Please discuss.
I don't know anyone who has ordered food from them. However I do know a bunch of people who are shopping there more because the prices are a bit lower. I think people shop there because its " fashionable" not because they want organic food. Ex. " I hopped out of my A7 at the Whole foods and ended up spilling Kambucha all over my loafers.......How was Walmart?"
I kind of shop there sometimes because the number of hot girls who shop there is astronomical. Also, Halo Top ice cream.
That's like 3 mini cartoons of blueberries
Whole Foods consistently has great talent.
I personally always thought Target was where it's at. I've seen some at WF, but also just way too many hipsters and hippies.
What city? The Whole Foods in my city is full of ugly women, but then again I live in the worst major U.S. city when it comes to women. Damm, I miss NYC and Chicago.
I haven't seen much advertising for the whole thing yet. Maybe they're testing it out before running big ad campaigns
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