Whole Foods' new customers overwhelmingly belonged to the same upper income demographic as the company's traditional customer base.
The benefit to Amazon is the ability to take a healthy food product to a mass market.More news: Aging robot arm gets spacewalk surgery
Thasos Group, an alternative data intelligence firm, published a research report, "Competitive Impact of Lower Prices at Whole Foods", analyzing numbers, composition and behavior of new customers at Whole Foods stores following significant price reductions in the wake of the chain's acquisition by Amazon.com August 28.
Customers appear to be sticking around after the price cut. Of the 110 items the firm tracked, prices decreased for 17 of them and increased for 16.
Whole Foods Market said customers who paid at the grocer's in-store bars and restaurants in Bellingham and Bellevue may have had their payment information hacked.More news: Jurgen Klopp admits he wanted to sign Romelu Lukaku over the summer
Foursquare, which analyzed the mobile phone movements of more than 2.5 million Americans, said traffic to Whole Foods was up about 13 percent the first week after the price cuts and remained up 8 percent after the second week. Walmart, Kroger, Costco and Target provided the largest numbers of new customers, while Trader Joe's, Sprouts and Target saw the highest percentage of their own regular customers defecting to Whole Foods. During that period, 15 percent of shoppers came from Costco, 11 percent were from Target and 5 percent were from Wal-Mart's Sam's Club.
Only ten percent of those visiting Whole Foods in the first week said they usually shop at Trader Joe's, while eight percent said they shop at Sprouts, an organic-food chain primarily located in the Southwest and West.
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.More news: Infotainment Systems Pose Distracted Driving Risks
Another survey reports that customers have seen little benefit from the lower prices.
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