Whole Foods’ private-label brand is aiding sales at Amazon’s online grocery delivery service, AmazonFresh, which were up 35 percent to $135 million in the last four months of 2017, the Wall Street Journal reported.
The most popular Whole Foods items on the Amazon site included organic baby spinach, shredded Parmesan cheese, organic riced cauliflower, unsalted butter and smokehouse bacon, a One Click Retail analysis found.
While Amazon sold an estimated $11 million of Whole Foods’ 365 Everyday Value natural and organic products last year — and $1.6 million in its first month of carrying Whole Foods products — the eCommerce site's private-label grocery sales remain small compared to supermarket chains. Kroger Co.’s natural and organic brands are nearing $2 billion in sales, for example, while Albertsons reportedly brings in $1 billion in annual sales.
Still, the Whole Foods products on the Amazon site helps the eCommerce retailer compete with online grocers.
“It…may be bringing new people into AmazonFresh,” Jim Hertel, senior vice president at food retail consultancy Inmar Willard Bishop Analytics. “That would be a real positive.”
Following an announcement that it would acquire Whole Foods last year, Amazon said its Prime service would soon be integrated into the Whole Foods point-of-sale system (POS).
In a press release, the companies said Amazon Prime members would be offered special savings and other in-store benefits once the integration is complete. It also announced it planned to integrate other areas over time to lower prices for Whole Foods customers.
“We’re determined to make healthy and organic food affordable for everyone,” Jeff Wilke, CEO of Amazon worldwide consumer, said in an announcement at the time. “Everybody should be able to eat Whole Foods Market quality. We will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards.”
Following the deal, Amazon notably lowered prices at Whole Foods on a variety of consumer staples, including eggs and beef.