Whole Foods going stale
As rest of grocery industry thrives, traffic at upscale chain falls an estimated 25% in September
With millions of Americans still largely staying home and cooking their own meals, the grocery industry has been one of the few bright spots in an otherwise battered U.S. economy. Unless, that is, you are Whole Foods Market, the upscale chain acquired three years ago by Amazon.
Trips to Whole Foods in September were down 25 percent from a year earlier, according to Placer.ai, which tallies retail foot traffic from some 30 million mobile devices. Some of the decline is due to consumers consolidating shopping trips and buying more groceries online, but the traffic decline at Whole Foods is much steeper than at Walmart, Kroger Co. and Trader Joe’s. Visits to Albertsons Cos., meanwhile, actually increased last month, compared with a year ago. And though Earnest Research estimates that Whole Foods sales (including online) rose by as much as 10 percent during the pandemic, some rivals are posting twice the gains.
“Everyone is buying more everywhere, but total customers are actually down for Whole Foods,” Michael Maloof, who tracks consumer habits for Earnest Research, said in a telephone interview. “Whole Foods is in a uniquely horrible place.”
Amazon doesn’t break out Whole Foods sales, so getting a complete picture of the chain’s travails is difficult. But few grocers were more awkwardly positioned for the pandemic, analysts say. The stores were rarely a one-stop destination before the outbreak even for fans. The com