Thasos Group, an alternative data intelligence firm, published a research report, "Competitive Impact of Lower Prices at Whole Foods", analyzing numbers, composition and behavior of new customers at Whole Foods stores following significant price reductions in the wake of the chain's acquisition by Amazon.com August 28. However, the price cuts may not be producing the desired results. Over 40 stores of Whole Foods sell beer on the tap.
For the month of September, vehicle traffic at Whole Foods stores was up 4.6 percent, the biggest increase since June 2014.
Customers' credit card information was accessed without authorization at eight Whole Foods stores in D.C., Maryland and Virginia, part of a security breach that affected 56 stores around the country, the grocery company said.
Traffic was up 17 percent during the full week after the price reductions and remained up 4 percent for the following week, ended September 16.
That's the message this week from analysts at JPMorgan, which studied satellite images of Whole Foods parking lots both before and after Amazon bought the natural grocery store chain. The rate is calculated by taking the percentage of regular Trader Joe's customers who visit the chain at least twice a month that reported going to Whole Foods instead on a given day.
Whole Foods said it is working with a cybersecurity forensics firm and authorities as it investigates the breach.
Whole Foods experienced a more than 25 percent jump in national foot traffic in the first two days after the price cuts went into effect, according to Foursquare, which analyzes the movements of more than 2.5 million Americans in its foot traffic panel.
Amazon.com, Inc. (NASDAQ:AMZN) has such a powerful brand that it can boost interest in other companies by proxy. But the good news is that you don't have to freak out just yet, because the analysis of the firm's data isn't to say that we'll soon have to kiss these lower prices goodbye.