Amazon Makes Inroads in Grocery

Whole Foods Customers Overlap with Amazon Prime

Consumer Intelligence Research Partners, LLC (CIRP) today released analysis of customer grocery shopping patterns for Amazon, Inc. (NASDAQ:AMZN), including analysis for the fourth quarter of 2017.

CIRP analyzed the grocery shopping and buying patterns of Amazon customers, and finds that grocery has become the second most popular category at Amazon, growing the fastest among Amazon’s product categories in the past two years. Almost half of Amazon customers have also shopped at Whole Foods, with most of those doing so in the past three months.

As of December 31, 2017, CIRP estimates the grocery category is the second-most popular among Amazon customers (Chart 1).

 Chart 1: Amazon departments purchased from in last purchase visit (12 months ending each quarter, statistics sum to greater than 100% due to multiple responses) 

Chart 1: Amazon departments purchased from in last purchase visit (12 months ending each quarter, statistics sum to greater than 100% due to multiple responses) 

We’ve known for awhile that Amazon sought to break out of its books, media, and electronics segment. Our data now shows that grocery has grown significantly as a part of the Amazon shopping basket. Almost one-quarter of Amazon customers included groceries in the most recent purchase, up considerably since 2015.

Among retailers at which Amazon customers also shop, over 40% have also shopped at Whole Foods (Chart 2). 

 Chart 2: Other retailers ever shopped by Amazon customers (Dec 2017)

Chart 2: Other retailers ever shopped by Amazon customers (Dec 2017)

Amazon customers shop at a range of other retailers, including Walmart, Target, and other significant mass merchants. Among those 40% of Amazon customers that also shopped at Whole Foods, an incredible 80% did so in the past three months, and three quarters of those, or 60% of those customers, were there in the past month. Clearly, the publicity around the Whole Foods deal, and even more importantly the numerous promotional efforts, brought Amazon customers into Whole Foods stores.

CIRP bases its findings on its quarterly surveys of 500 US subjects who made a purchase at Amazon.com in each quarter from January 2015-December 2017. For additional information, please contact CIRP.