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Whole Foods Market Analysis

939 Words4 Pages

Introduction
Whole Foods Market is the “world’s leader in natural and organic foods (Whole Foods Market web-site, 2018).” The recent acquisition by Amazon, in the past year, presents a tipping-point for Whole Foods Market to determine what you can become with the force of Amazon behind it. This white paper reviews the shifting competitive landscape and recommends product and customer strategies for growing online grocery sales, the fastest growing grocery sales channel (Burt, 2015), for maximizing the benefits of this tipping point.

Shifting Competitive Landscape
The Consumer Packaged Goods (CPG) and retail industry, for which Whole Foods Market competes, is changing at a frenetic pace. IRI, in a recent Point of View Paper, summarizes …show more content…

• Voice-activated device capabilities allow customers to order pantry items anytime from home for next day delivery.
• Small-format stores allowing, “… entry into more densely populated markets and along key travel routes.”
• Greater consumption of food away from home, “…. more than 55 cents of every dollar spent on food is spent outside the home.”
• Customers have more choices, where researchers from Washington University in St. Louis found, “… nearly two-thirds of households buy 30 or fewer categories exclusively at a single store.”
• Walmart’s recent acquisitions of Jet.com, Bonobos and Shoebuy.com puts them on the offensive to compete with Amazon for E-commerce growth.
• European discounters entry into the USA has IRI forecasting Aldi, the largest European store, reaching the third-largest grocer (by store count) in …show more content…

Successful retailers must first understand their Share of Customer Wallet and formulate product and customer strategies to maximize growing Whole Foods Market’s online grocery share.
Understand Share of Customer Wallet
You want to know what portion of every dollar your customers spend for groceries with Whole Foods Market. IRI’s Shopper Analytics team describes Share of Customer Wallet as a metric that captures real cashflow and customer loyalty, “… which clearly impacts [Whole Foods Market’s] future lifetime value of the customer (IRI, 2018).” Product Strategies to Maximize Share of Customer

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