Suffering the most customer defections since Amazon cut prices at Whole Foods were rivals Trader Joe's and Sprouts, according to a data analystics firm. Fred Katayama reports.
Woe for Joe? Amazon's price cuts at the retailer it acquired, Whole Foods, has pulled in more customers, and the biggest defectors the organic grocery chain pulled in came from Trader Joe's and Sprouts Farmers Market. Data analytics firm Thasos Group says 10 percent of Trader Joe's regular customers visited Whole Foods between August 28 and September 16. Eight percent of Sprouts customers also went for a peek. Thasos CEO Greg Skibiski said, "Amazon's acquisition of Whole Foods has the potential to be a gamechanger in the grocery space." But when it comes to sources of new customers for Whole Foods, Thasos says the crown goes to Wal-Mart. Nearly one fourth of the new shoppers Whole Foods pulled in after the price cuts came from America's largest retailer. Runners up were Kroger, Costco and Target. The price cuts, however, didn't pull in a new demographic outside of its traditional upper-income shopper. Nor, says Thasos, did that convince customers to drive from afar just to pay a visit.