Has Amazon Spoiled Whole Foods?
This is an excerpt from Monday's (2|15) Point of Sale retail supply chain newsletter sponsored by ArcBest. Amazon's (NASDAQ: AMZN ) grocery growth has been remarkable and part of that is thanks to leveraging the Whole Foods brands and store infrastructure. However, that growth has been to the detriment of stores, many of which are now effectively mini-fulfillment centers crammed full of pickers walking the aisles and shops and restaurants — once a calling card for stores — turned into packing areas. Whole Foods lost market share in 2020. In-store grocery sales at most other retailers — from specialists like Kroger and Sprouts to generalists like Walmart and Target — were up (a lot) in 2020. Overall, grocery spending has been up between 15% and 25% since the pandemic began in March. Whole Foods is an expectation and its stores have not performed well throughout the pandemic. Admittedly, some of this is a deliberate part of Amazon's efforts to shift sales online, but there's more to the story. ( Chart: Bank of America) In 2020, Amazon saw sales from brick-and-mortar stores — mostly Whole Foods — decline 8%, but Amazon's 46% sales growth confirms huge online gains, presumably at Whole Foods, as well.
Has Amazon Spoiled Whole Foods?
This is an excerpt from Monday's (2|15) Point of Sale retail supply chain newsletter sponsored by ArcBest. Amazon's (NASDAQ: AMZN ) grocery growth has been remarkable and part of that is thanks to leveraging the Whole Foods brands and store infrastructure. However, that growth has been to the detriment of stores, many of which are now effectively mini-fulfillment centers crammed full of pickers walking the aisles and shops and restaurants — once a calling card for stores — turned into packing areas. Whole Foods lost market share in 2020. In-store grocery sales at most other retailers — from specialists like Kroger and Sprouts to generalists like Walmart and Target — were up (a lot) in 2020. Overall, grocery spending has been up between 15% and 25% since the pandemic began in March. Whole Foods is an expectation and its stores have not performed well throughout the pandemic. Admittedly, some of this is a deliberate part of Amazon's efforts to shift sales online, but there's more to the story. ( Chart: Bank of America) In 2020, Amazon saw sales from brick-and-mortar stores — mostly Whole Foods — decline 8%, but Amazon's 46% sales growth confirms huge online gains, presumably at Whole Foods, as well.