Austin American-Statesman

WHOLE FOODS SHOPPERS LIKE CHANGES UNDER AMAZON

Grocer’s customers say experience has improved since merger.

- By Sebastian Herrera sherrera@statesman.com Whole Foods

The Amazonific­ation of Whole Foods Market appears to be boosting customer perception of the grocer — albeit incrementa­lly.

According to a new survey released by market research firm Morgan Stanley, Whole Foods customers indicated they have had a better overall experience at the grocer since Amazon took over last fall.

The research firm has studied various components of the grocery industry post-merger, including the customer makeup at Whole Foods, online shopping and obstacles that might be keeping the Austin-based company from gaining more ground.

Out of almost 3,000 adults that Morgan Stanley surveyed online in May, the top change observed at Whole Foods during the past six months was better quality of products, followed by lower prices.

Since completing its $13.7 billion deal for Whole Foods last August, Amazon has focused on prices by trying to draw more of its Amazon Prime customers into Whole Foods stores.

Amazon recently started a discount program for Prime members at Whole Foods, and has also expanded its grocery delivery service throughout the country.

Among its offerings, membership to Amazon Prime has included free grocery delivery and 10 percent off already discounted items at Whole Foods.

“Prime is what Amazon has built their business on,” said Phil Lempert, a grocery analyst with California-based Supermarke­t Guru. “They are all about building relationsh­ips with shoppers.”

The survey results show Whole Foods already has a high amount of Prime membership upon which to build.

Almost 70 percent of survey respondent­s who shop at Whole Foods said they were also Prime members.

Walmart, in comparison, has the lowest percentage of customers who are also Prime members, at 48 percent, according to the survey.

While Amazon’s grocery efforts are commonly measured in terms of what Walmart is doing, in reality, Whole Foods has shared more similariti­es with other chains.

According to the survey, Whole Foods has the greatest shopping overlap with Trader Joe’s, Fresh Market and Sprouts shoppers, with 38 percent of Trader Joe’s shoppers, 37 percent of Fresh Market shoppers and 29 percent of Sprouts shoppers also shopping at Whole Foods.

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