Study: Walmart shoppers checking out Whole Foods Market
As Whole Foods Market continues to slash prices at its stores, the chain is attracting competitors’ shoppers — including those from Walmart.
This was according to “Competitive Impact of Lower Prices at Whole Foods,” a report from data intelligence firm Thasos Group.
Immediately following Amazon’s acquisition of Whole Foods in August, the natural foods grocer has significantly dropped prices on merchandise storewide. This effort has increased foot traffic by 17% year-over-year during the week of the price reductions, which began on Aug. 28.
Walmart’s regular customers accounted for the largest percentage (24%) of Whole Foods’ new customers the week of Aug. 28. Kroger (16%), Costco (15%) and Target (11%) comprised the next largest numbers of new customers.
When it comes to customer defections, Trader Joe’s saw the highest rate, with an average loss of nearly 10% daily customers. This was followed by Sprouts (8%) and Target (3%), the study revealed.
Whole Foods’ new customers overwhelmingly belonged to the same upper income demographic as the company’s traditional customer base. Furthermore, defecting customers came from the wealthiest segment of each competing store’s customer base the week of the price cuts.
Since the price cuts were first announced, foot traffic has settled in at lower, but still elevated levels. The price reductions were too insufficient to attract new kinds of customers, as new customer demographics (including income levels and distance driven to a given store) largely matched those of existing customers, the study said.
“Knowing which stores new customers have defected from, what income levels they represent, how far they traveled to get to Whole Foods, and ultimately, whether they will continue to shop there after trying it out, are invaluable pieces of information for both investors and the stores themselves,” said Greg Skibiski, Thasos Group CEO and founder.
“We all know that Amazon’s acquisition of Whole Foods has the potential to be a game-changer in the grocery space, and in the &lsquobrick-and-mortar versus online’ battle more broadly,” he added. “It will be extremely interesting to watch the winners and losers emerge from the data over the coming months.”
Report: Online giant has its eye on some French supermarkets
Amazon is exploring its next grocery opportunity — but not in the United States.
The online giant is looking for physical store locations in France, especially Paris. French newspaper Le Monde, which first broke the story, said Amazon has approached various French supermarket operators — including Groupe Casino, Intermarche and Systeme U — about setting up distribution deals or making an acquisition in the country, according to CNBC.
Bidding on a supermarket operator is not new territory for the e-retailer, which purchased Whole Foods Market in August for $13.7 billion. Since Amazon’s is only eyeing 15 locations this time around, some sources are speculating that the units could be a way to expand the company's Amazon Go grab-and-go concept. The cashless convenience store is currently in a private beta test with only Amazon employees and located in Seattle.
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Maternity clothing retailer goes mobile
Destination Maternity is making it easier for its customers to connect with the brand.
The maternity clothing retailer transitioned from a custom e-commerce platform to Salesforce Commerce Cloud, with the help of global commerce provider Lyonscg. The transition enabled the chain to launch customized mobile sites for its Motherhood, Motherhood Canada, A Pea in the Pod and Destination Maternity brands. All sites feature more intuitive navigation, improved site merchandising and on-site search, and easier check out.
Lyonscg provided strategy, experience design, development and marketing services. This included several back-end integrations, such as order management, gift cards, store locator technology, and loyalty program technology.
Since launch, conversion rates have increased by more than 40%, and increased units per transaction have fueled top-line sales growth. The initiative is a part of a broader growth strategy for the company, which includes improved inventory management, omnichannel fulfillment, and international shipping, according to Destination Maternity.
“The Mom2Be is a digitally connected consumer who expects anytime, anywhere access,” said Gwen Bennett, VP e-commerce, Destination Maternity Corp. “Moving our Web operations to Salesforce Commerce Cloud gives us the capabilities we need to deliver engaging mobile-first experiences to her.”
Across all three of its brands, Destination Maternity operates more than 1,100 retail locations in the United States and Canada.