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Whole Foods is struggling amid the novel coronavirus outbreak!
A new report indicates that foot traffic in the natural grocery chain was 25% below last year in September. Not our beloved Whole Paycheck!
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According to Placer.ai, which tallies retail foot traffic from some 30 million mobile devices, via Bloomberg, trips to Whole Foods were down for the month.
It may be because people are consolidating their shopping trips or buying more groceries online--but the publisher points out that Whole Foods' drop-off is "much steeper than at Walmart Inc., Kroger Co. and Trader Joe’s." Yikes!
Overall, COVID has meant that more people are sheltering in place and cooking their own meals, so the grocery industry has done well.
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Earnest Research estimated earlier this year that Whole Foods sales in stores and online is up 10% during the pandemic--but they also point out that some competing grocery chains are up by even more than that.
“Everyone is buying more everywhere, but total customers are actually down for Whole Foods,” Michael Maloof of Earnest Research revealed. “Whole Foods is in a uniquely horrible place.”
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Amazon doesn’t break out the grocery's sales from their own numbers, but experts note that it wasn't set up to do well in the pandemic for a few reasons. For one, Whole Foods hasn't been a "one-stop shop" like other grocery stores (raise your hand if you have to go elsewhere for things like Diet Coke on your shopping list!)
Additionally, the store recently expanded its lunch bar, but fewer people are going to the office now so it's a mute point. Additionally, some shoppers have been experiencing longer lines at the store (possibly due to their extra safety measures?) and aisles are crowded because there are more gig workers fulfilling online orders than ever before.
READ MORE: Whole Foods Is Changing It’s Stores--& We’re Not Sure How To Feel About This!
A Whole Foods rep asserts that there is no cause for concern. “Whole Foods Market continues to grow, and we strongly dispute this portrayal of the health of our business. In addition to offering a safe in-store shopping experience, we're proud we've been able to rapidly expand grocery delivery and pickup to meet the needs of customers.” Interesting!
