- Amazon’s acquisition of Whole Foods has likely led to 30 million Amazon Prime members now becoming more regular Whole Foods shoppers.
- One in three Prime members has said they’re likely to increase visitation to Whole Foods.
- Since the merger, there have been some reports of food shortages, stock problems and customer service issues.
In the year since Amazon’s $13.7 billion Whole Foods acquisition made headlines and sent shockwaves through the grocery and retail industries, the merger continues to pay off in spades for the two giants.
Sense360, a company that provides data-driven insights into the food industry, sifted through millions of customer surveys and concluded that Whole Foods is successfully siphoning off customers from rivals as Amazon’s hold over American consumers tightens.
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The merger likely converted 30 million of the 100 million Amazon Prime members, who pay $119 annually for new subscriptions, into more regular Whole Foods shoppers as one in three Prime members said they are likely to increase visitation to Whole Foods. Prime members also have increased their visits to Whole Foods at twice the rate of non-Prime members, based on Sense360’s report.
Moreover, Whole Foods is edging out its competition through the merger, as 3.5 percent of Prime members are electing to shop at Whole Foods over rival Trader Joe’s — a haven for budget-conscious shoppers — when the two retailers are within one mile of each other. Since Amazon essentially rescued the once struggling retailer, Whole Foods has strengthened its market penetration by approximately 10 percent since the Prime deals rollout.
Amazon’s presence in Whole Foods is impossible to miss. The aisles have a distinct Amazonian look and feel with Amazon gadgets on display, employees wearing Amazon logos, signage calling out discounts exclusive to Prime members and entrances peppered with Amazon lockers that house customers’ orders.
Not everyone has welcomed the changes brought about by Amazon’s intervention. Reports of food shortages, stock problems and customer service issues from Whole Foods purists and vendors were well-documented earlier this year. Despite its growing pains, Whole Foods is advancing its position in the grocery war.
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