Is Amazon Fresh Cheaper Than Whole Foods - While Amazon reported phenomenal first-quarter accounting sales overall on April 29, brick-and-mortar grocery stores underperformed. Sales at the Seattle-based company's grocery stores, which consist mostly of about 500 Whole Foods Market locations but exclude sales that come online and are filled from them, such as first-time deliveries, fell 16% to $3.9 billion in the quarter.
The pandemic has favored conventional single-station supermarkets over specialty stores like Whole Foods, but how the e-tailer's more budget-friendly Amazon Fresh, of which there are currently 12 locations, fared in the past six months, and how its two-person Amazon Resilient brand against the competition and each other?
Is Amazon Fresh Cheaper Than Whole Foods
To find out more, WGB connected with Chief Strategy Officer Michael Della Penna of InMarket, a provider of 360-degree consumer intelligence and real-time activation for thousands of major brands, who recently conducted an assessment of the location data of 80,000 anonymous customers worldwide. 10 Amazon Fresh stores and 10 Whole Foods locations from September 2020 to April 2021. Whole Foods locations were selected based on their proximity to Amazon Fresh locations.
Amazon Fresh Reviews
Jennifer Strailey: Based on your assessment, Whole Foods Market and Amazon Fresh have very different customers and are not in competition with each other. Who are Amazon Fresh's main competitors and how is this grocery store surviving in the mid-market? Michael Della Penna: You're right that there's a bit of crossover between Amazon Fresh and Whole Foods. In fact, we found that between 1% and 2.5% of Whole Foods customers visited Amazon Fresh in the last six months. It's still in its early stages, but Amazon Fresh's main competitors tend to be local independents or small natural health and regional chains, as well as medium-sized grocery chains like Stop & Shop and Key Foods, rather than more luxury or specialty brands. An important factor that sets Amazon Fresh apart from its competitors is the service's expertise in delivery. While competitors have had to adapt to pandemic circumstances with services like curbside pickup, Amazon Fresh has a well-established delivery infrastructure that allows shoppers to access their groceries without leaving their home. There are also member benefits, such as shoppers receiving a 5% cash back gift for using an Amazon Prime Rewards Visa Signature Card or Amazon Prime Store Card at checkout.
You describe Amazon Fresh as a "popular with a more budget-conscious and diverse customer base" mid-market option than Whole Foods. How? We found that Amazon Fresh outperformed Whole Foods and the national averages for Asian and Hispanic customers. According to our analysis, Amazon Fresh customers are 3.6 times more likely to be Asian than the national average, compared to 2.7 times at Whole Foods. Further differences were found in income, employment and attendance of children. When you combine demographics with other attributions like psychographics to understand buyer motivation, the difference is even greater. We applied the InMarket GeoType to our analysis, which combines up to thousands of different attributes to understand shopper personas and motivations, and found that Amazon Fresh customers have more personas than Whole Foods customers. Amazon Fresh's top four personas account for only about 31% of all shoppers and are mostly over-indexed with "rich savers," "value seekers," "steadfast parents," and "thrifty eaters." Contrast this with Whole Foods, where the top four shopper personas account for nearly 50% of all customers, and are over-indexed among “focused and on the go”, “mature and confident”, “healthy and prosperous” and “homemaker” ." ”—demonstrating appeal to a very different segment. You could say Amazon is building a grocery business like automakers, attracting Honda and Acura shoppers with Fresh, and Lexus with Whole Foods.
Whole Foods has been performing poorly since the pandemic, and your report shows that traffic is declining. How is Amazon Fresh performing? It's true that foot traffic to Whole Foods has declined over the past year. In fact, we looked at visiting trends in the third quarter of 2020 and found a 40% drop in total visits over that time period from pre-pandemic levels. While in-person shopping has recovered as more shoppers are vaccinated, we can attribute Amazon Fresh's impressive loyalty to the appeal of contactless shopping, and Amazon's strength and name recognition along with the early popularity of this new and exciting concept. Amazon Fresh and Whole Foods appeal to different types of customers and tailor experiences to meet their customer needs. While Whole Foods has a reputation and an established customer base, Amazon Fresh is bringing shoppers a new and unfamiliar concept with a well-known, familiar, and respected name – Amazon. Even though the business model is fairly new to the market, with only 12 locations, the buyer return rate for Amazon Fresh is a positive sign for the chain.
What do these ratings say about the future success of Amazon Fresh and Whole Foods Market? What do you see happening with these brands in terms of customer traffic, customer loyalty, etc. when we emerge from the pandemic? Amazon is using its vast resources to build a grocery business that can challenge more established brands for a share of the $658.1 billion supermarket and convenience store industry. With the emergence of Fresh, Amazon is increasing its footprint in the grocery store by establishing its brand as a mid-market competitor that uses technology, convenience, and choice to achieve lower prices. At the same time, this “whole food for everyone” approach appealed to a more diverse, slightly lower-income, and more family-oriented clientele. While the immediate concern with the rise of Amazon Fresh was Amazon's cannibalization of its own customer base within the same sector, the opposite proved to be true. Even after we emerge from the pandemic, Amazon Fresh customers' concern for cost-effectiveness and convenience will guide their shopping habits and will likely drive their ongoing loyalty to the network.
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Pressure from the ongoing pandemic, combined with increasing economic uncertainty, social unrest and more have fueled the pressure cooker for grocery and convenience store customers and their employees.
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The American consumer of 2022 is nothing if not a channel surfer. Aligned with the variety of local retailers offering fresh food – with dollar stores doubling their food offerings (including fresh and frozen goods) and discounts like Aldi and Lidl expanding across the country – consumers are willing to shop and try new retailer categories as they seek to reduce inflation. retail, namely 11.8% in December.
New store updates are important to our readers, so we're adding monthly features to highlight them and demonstrate the growing trend of supermarkets across the country. If you've never shopped for food on Amazon, here's a quick rundown of my experiences and favorites on Amazon Fresh and Amazon Whole Foods Market.
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So it starts with me searching Amazon for a product and gets redirected to Whole Foods on the Amazon app. I started looking around and saw lots of other things I wanted to try... I wasn't out of that rabbit hole yet.
I live in Boro Park. We don't have Trader Joe's or Whole Foods around here, and unless my idea of fun is to take three carts to eat four bags of food... this is a great way to explore the cutest produce and have it delivered to my door. So what's the difference between Whole Foods Market and Amazon Fresh?
Both are grocery stores on Amazon. For the most part, Amazon Fresh is often cheaper and has lots of familiar brand name products. Whole Foods Market was built for those who want organic produce; the price point is sometimes higher. Personally, I find more unique Halal products at Whole Foods Market, but for fruit/veggies, I can do a price check between the two. I find that flowers and products at Amazon Fresh and Whole Foods last longer than my standard grocery store counterparts, and roses at $14.99 for a dozen that last a week are a price that can't be beat!
Amazon Fresh delivers to fewer locations than Whole Foods, so check your address first, but shipping is free on orders over $50. Whole Foods charges a flat fee of $9.95 for delivery of orders of all sizes. Please note that item availability depends on your local store's stock, so some items may not be available near you.
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If you're like me and can never drink enough, these popsicles really do the trick. These Açaí Pops are loaded with electrolytes and taste so good!
Don't know why I never found these at any local kosher grocery but they add such a nice flavor to smoothies and I sometimes just toss them in my oatmeal. They're not sweet - actually quite sour, and I found that refreshing.
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