Whole Foods traffic spiked 18.6% on Independence Day
- Whole Foods’ in-store foot traffic increased 18.6% on July 4 this year compared to last year, data from inMarket shows. Foot traffic also increased July 3, up 4.1% from the previous year.
- The firm noted it's unusual for traffic to increase from July 3 to July 4, and noted that the bump could be due to the influence of Amazon's Prime promotions and shoppers seeing the grocer as more of a "mainstream" destination for food, beverages and supplies.
- Whole Foods Independence Day discounts this year included two $25 package deals that ran July 3-6. They included a bundle with fresh wild sockeye fillet, a family-size peach cobbler and one pound of summer kale salad; and a bundle with two pounds smoked pulled pork, eight-pack of Whole Foods brand hamburger buns, a two-pound picnic salad package, and a Whole Foods brand 8-inch fruit pie.
Since its acquisition of Whole Foods, one of Amazon’s biggest priorities has been turning around a "whole paycheck" image that kept customers away. The e-tailer's price cuts have been selective and increasingly tied to its Prime membership program, and they have also brought shoppers into stores.
These latest numbers show Whole Foods can boost traffic on and around important holidays. The retailer's July 4 deals were solid, if not exactly spectacular. As inMarket notes, the results likely point to Whole Foods' growing profile as a primary destination for shoppers. When the food-heavy holiday came around, people were increasingly likely to turn to it for burgers, buns, beer and more.
The Independence Day traffic bump indicates a big Prime Day for Whole Foods. In the days leading up to the event, Whole Foods offered $10 Amazon credit if shoppers spend $10 or more at the grocer. Starting later today and going through tomorrow, customers will also get 10% off already discounted products, and deals on everything from Icelandic cod to Honey Nut Cheerios.
Offering Prime Day deals at Whole Foods encourages Amazon’s customers to shop in-store and for Whole Foods shoppers an incentive to get a Prime membership. Research has found that roughly 75% of Whole Foods shoppers are Prime members, but less than 20% of Prime members shop at Whole Foods. This proves the runway is long for Amazon in the $800 billion grocery space. But will those opportunities come through brick-and-mortar deals or through the fast-growing online grocery business, where Amazon has key advantages?
Prime benefits merging with Whole Foods’ creates a dynamic that makes it hard for other grocers to compete. Looking at the data, the industry is already seeing a difference and it’s a major threat to other grocers.
At the same time, loyal Whole Foods shoppers who adored the grocer’s pristine customer service are worried Amazon's many changes will affect their shopping experience. The e-tailer needs to find a harmony between keeping existing customers and attracting new ones by offering a healthy balance of local brands, fresh offerings, excellent customer service and competitive discounts.
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