Amazon Dominating the Whole Food Industry

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Since Whole Foods was acquired by Amazon last month, its traffic has risen by 25 percent. In fact, the rise in traffic was recorded just two days after the Amazon acquired the business. What is not clear is the cause of the traffic. Some experts say that curiosity, as well as lower food prices, may be the reason. However, only time will differentiate between the two. Between 28th and 29th August, Amazon reported that its traffic had risen dramatically. Another report compiled by another company that specializes in analyzing and collecting data known as Foursquare said that Amazon traffic had risen by more than 20 percent. This trend began on 29th August which is the day that Amazon Whole Foods deal was finalized. The deal is estimated to have cost Amazon $13.7 billion. This deal affected a variety of products such as Whole Trade bananas that fell by 38 percent. By the end of the day, bananas cost fell to 49 cents from 79 cents. The same happened to organic baby kale that dropped by 12 percent. Initially, the kale would cost $3.99. This fell to $3.49. The cost of Tilapia was also affected as it reduced by 33 percent. The Tilapia now costs $7.99 from $11.99.

On its part, Amazon refused to comment when confronted by journalists about the sale trends concerning the two days. This made it impossible for analysts to analyze the situation to determine the cause of the spike. However, some experts such as the research director of Gartner Bob Hetu, a research and consulting firm feel that the notion that curiosity may have caused the spike is not true. He said that it’s rare for a grown up with obligations to just drop by a food store to check on the prices of the commodities on sale. However, he said that with time the number of shoppers would normalize. The analyst said that the concerns now fall to other retailers such as Kroger. They were making a name for themselves as the best organic provider in the country at affordable prices just to be overtaken in a day by Amazon. According to a September analysis, Amazon Whole foods ranks as number five in the list of grocery retailers in the US. Walmart leads the pack, Kroger comes in second and then followed by Costco and Albertsons. As for Amazon research director Cooper Smith, he said that they were not surprised with the numbers.

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