Amazon’s widely reported price cuts at its newly acquired Whole Foods unit appear to be driving foot traffic to the store—and away from some competitors.
Average daily foot traffic to Whole Foods locations for the week ending September 3—the first week of price cuts—increased 17% vs. the same period in 2016. Not surprisingly, three weeks after the price reductions were announced, foot traffic increases had fallen back to 4% year over year.
Competitor Trader Joe’s lost about 10% of shoppers in the first week; the defections remained relatively high, at 6%, throughout the reporting period. Sprouts, perhaps the closest competitor to Whole Foods in terms of product selection, also saw high rates of shoppers checking out the competition—8% in the first week, and nearly 7% by the third week.
Jay & Julia Taylor own and operate Caney Creek Studio. Caney Creek Studio is a video production, digital marketing, and social media management agency.