Amazon Pressure With Whole Foods’ Competitive Pricing | eSellercafe

The Amazon effect on Whole Foods

Another effect on this is that customers from its competitors have shifted over to Whole Foods. Around 24 percent of new customers come from Walmart, while from Kroger it got 16 percent.

This means that customers are preferring the lower prices that Whole Foods is offering as opposed to its competitors.

As for the percentage of defection, the hardest hit is Trader Joe’s with 10% of its customers switching over to Whole Foods. Sprouts lost 8% of its customers, while Target lost 3%.

Perhaps the most surprising outcome out of this is that the new customers that Whole Foods has acquired have been the wealthiest customers from its competitors.  This would naturally go against the notion that those who aren’t so much well off would be the first to defect to a lower priced competitor.

In the same token then, the price reduction did not attract those from the lower income bracket, as normally it should have.

The study has shown that new customers come when there’s a price reduction from a retailer.

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Amazon Pressure With Whole Foods’ Competitive Pricing.