Most Amazon Fresh customers don’t shop at Whole Foods

Whereas Amazon was one of many world’s greatest beneficiaries of the pandemic, with lots of of thousands and thousands of customers turning to it for his or her on-line purchasing wants throughout lockdowns, certainly one of Amazon’s different manufacturers suffered enormously. A new report from foot traffic analytics firm Placer.ai reveals that Amazon-owned Whole Foods Market noticed its foot site visitors nearly minimize in half by April 2020—month-to-month visits have been down 49% in comparison with the identical time in 2019.

The excellent news for Amazon? Since then, Whole Foods has slowly regained misplaced foot site visitors. Whereas foot site visitors continues to be down, the hole is closing. In Could and June 2021, Whole Foods site visitors was down 16.4% and 13.5%, respectively, from Could and June 2019 numbers, with Placer.ai revealing the tempo of foot site visitors restoration can be growing.

However maybe essentially the most attention-grabbing factor from Placer.ai’s report is its delve into Amazon’s different grocery initiative, Amazon Fresh, and the way that retail model compares to Whole Foods. Placer.ai’s knowledge exhibits that the majority customers who shop in an Amazon Fresh by no means step foot in a Whole Foods. When trying at seven Amazon Fresh shops for the month of June 2021, the best degree of cross purchasing was solely 18.1% and the bottom was 7.5%. Which means at most fewer than one in 5 Amazon recent customers additionally spent their cash at Whole Foods, with that quantity dropping to just one in ten at some places.

However as Placer.ai notes, this lack of cross purchasing between its grocery manufacturers might be a superb signal for Amazon’s grocery initiatives. “Whereas cross purchasing is at all times a pleasant factor to have between owned manufacturers and can be utilized to create an even bigger general pie, a division of viewers could also be even higher. Amazon appears to be successfully leveraging grocery property to focus on completely different segments of the market,” Placer.ai’s report concludes, noting that with Whole Foods, Amazon has a lock on the extra city, high-income grocery customers and with Amazon Fresh, it targets one other, fully completely different phase: grocery customers on the lookout for comfort and price financial savings.