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Amazon Sells $1.6 Million in Whole Foods' Store-Brand Products in First Month

Amazon Sells $1.6 Million in Whole Foods' Store-Brand Products in First Month
Dawn-Balaban/Dreamstime

By    |   Monday, 02 October 2017 06:52 AM

Amazon.com Inc. reportedly has sold about $1.6 million in Whole Foods beans, breakfast cereal and other store-brand products in the first month since taking over the organic chain,

The burst of sales is one of the first infusions of cash the e-commerce giant has delivered to the natural grocer through its site, the Wall Street Journal reported.

Deli turkey breast and coconut water were most popular items sold.

Amazon gives Whole Foods products the potential for a new mass-market platform, providing new revenue to the struggling grocer, grocery analysts told the Journal.

“When they blow it out, it’ll be a much bigger number,” said Bob Goldin, partner for the Pentallect Inc. food consultancy.

Amazon completed $500,000 in online sales in the first week after it started offering Whole Foods’ “365 Everyday Value” products, according to the One Click Retail, an e-commerce data analytics firm that focuses on the site’s transactions.

Weekly sales fell to about $300,000 for the next two weeks after Amazon ran low on some products but rebounded in the fourth week, the analysis found.

To be sure, Amazon’s recent price cuts at Whole Foods drew more shoppers to its newly acquired natural and organic grocery chain, according to two companies that track retail traffic, Reuters reported.

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.

Increases varied by region. New York locations were up less than 15 percent, while Chicago stores logged a more than 35 percent jump, said Foursquare. On Thursday, the firm said it plans to revisit the data at month end.

Orbital Insight, which monitored business at 294 Whole Foods locations with parking lots, saw a traffic increase of more than 15 percent two days after the price cut announcement. Those stores account for about 65 percent of Whole Foods locations.

Two weeks after the announcement, traffic was up, but only by 5 percent, Orbital said.

Amazon, which fought for years to get significant traction with its Amazon Fresh grocery delivery service, bought Whole Foods in a $13.7 billion deal that has rattled a U.S. grocery sector already in the midst of a brutal price war.

In its first major move as owner of Whole Foods, Amazon on Aug. 28 slashed prices on staples like beef and organic apples, in some cases by more than 40 percent, in a bid to shake the specialty grocer’s “Whole Paycheck” reputation for inflated prices.

Representatives from Whole Foods and Amazon did not immediately respond to requests for comment.

(Newsmax wires services contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
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Amazon.com Inc. reportedly has sold about $1.6 million in Whole Foods beans, breakfast cereal and other store-brand products in the first month since taking over the organic chain,
amazon, whole, foods, products, store
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2017-52-02
Monday, 02 October 2017 06:52 AM
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