Amazon’s plan to make Whole Foods more affordable and increase business is working. According to a report released yesterday, the supermarket chain (previously avoided for its high prices) saw a 25% increase in foot traffic across the US after prices were slashed last month. Some cities, like Chicago, saw an even greater increase of 35%.
Foursquare Labs Inc. looked at data in the two days after Amazon’s takeover. Prices on some items were cut almost 43% and Whole Foods stated that it’s committed to keeping the prices of avocados, salmon, eggs, and other items low to keep customers coming back. Analysts say that it’s still too early to tell whether or not the new pricing strategy will retain shoppers, but it’s certainly not a bad sign.
In addition to lowering prices, Amazon has made a selection of 2,000 Whole Foods items available online. In fact, 365, the chain’s in-house label, racked up $500,000 worth of sales after just one week online.
Is this jump in sales simply a short-term reaction to the well publicized merger itself or has Amazon been able to attract a whole new consumer to the once elite grocery chain? Only time will tell.
Want more money tips like this delivered to your inbox each day? Check out The Daily Grand. Your daily dose of money advice plus a chance to win big money each day. Sign up here