The natural products movement pioneer opts for efficiency over authenticity, opening a huge market gap for independent natural products retailers. “Day One” of the Amazon acquisition of Whole Foods Market saw significant—and reportedly permanent—price cuts in Whole Foods’ stores on everyday market basket items. In addition, Amazon made a limited assortment of Whole Foods’ price-cut “365 Everyday Value” private label line available online to its Amazon Fresh and Amazon Pantry customers, generating an estimated $1.6 million in sales in the first month.  Read more...
One of the first moves Whole Foods made under Amazon’s new ownership was to kick all brokers and vendors out of the stores, preventing direct sales contact with store buyers. In the Wall Street Journal, Jay Jacobowitz weighs in on what this means for smaller brands and the consumers that still want them.  Read more...
Watching Wall Street hammer major food-retailing stocks immediately after Amazon’s June announcement to buy Whole Foods Market, I can understand why you—an independent natural products retailer—may have felt a shiver down your spine. Since then, those grocery stocks have recovered most of their losses as investors thought more carefully about the challenges Amazon must meet before—and even if—it is to have any real impact on U.S. food retailing.  Read more...
As of 2017, natural organic products sales grew 3.8% to reach $75.2 billion, or 11.56% of the $650.5 billion in total U.S. food store sales. Supernatural retailers including Whole Foods Market and Sprouts Farmers Market still control the largest market share, at 29.25%, followed by conventional supermarkets such as Kroger, Albertsons/Safeway, Publix and Wegmans, with 18.2%.

Third in line, compact grocers (stores < or = 20,000 sq. ft.) such as Trader Joe’s and Natural Grocers by Vitamin Cottage, registered a 14.71% market share, followed closely by independent natural products retailers and coops at 14.66%. Mass marketers Walmart and Target nosed out club stores such as Costco and Sam’s Club, with a 6.5% market share vs. 6.1%, for the clubs.

For more information, please view the video presentation above, “39th Annual Whole Foods Retailer Survey”, or contact Retail Insights® directly at 1.802.254.8600, or via email, info@retailinsights.com
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