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New IRI Report Analyzes Impact of Amazon’s Acquisition of Whole Foods

IRI®, the global leader in innovative solutions and services for consumer, retail and media companies, today announced the third in a series of IRI Market Shift Studies, providing retailers and manufacturers with the understanding and data to respond efficiently and intelligently to new market dynamics. The latest study analyzes the impact Amazon’s recent acquisition of Whole Foods Market is having on the retail landscape, as well as shopper behavior and expectations.

The recent transaction provides U.S. shoppers with the opportunity to shop for groceries through traditional retail channels with benefits from Amazon’s e-commerce model, including improved pricing and expanded customer services. While synergies of the acquisition, such as benefits to Amazon Prime subscribers in Whole Foods stores, are not yet fully realized, they have already begun to shape behavior. For example, 71 percent of Whole Foods shoppers with Amazon Prime memberships are more satisfied with their experience at Whole Foods and are more likely to shop there. Furthermore, anticipated benefits, such as free grocery delivery, are expected to motivate over 60 percent of shoppers to buy more of their groceries at Whole Foods Market stores.

Since Amazon POS data is not readily available, retailers and manufacturers rely on shopper-based insights to understand and track how Amazon with Whole Foods Market is likely to impact their business, from changing shopper behavior to local pricing impacts. IRI’s Market Shift Study includes unique insights from customer shopper surveys, store-by-store competition analyses, and market-level price and trip analyses. The analytics package, which will be updated quarterly, aims to arm CPG companies with insights to navigate a changing retail environment and identify new opportunities to compete.

“IRI’s Market Shift Study empowers retailers and manufacturers with the data and insights they need to make more impactful investments and more effectively compete in the evolving retail landscape,” said Fernando Salido, executive vice president of Shopper Analytics, Consumer and Shopper Marketing for IRI. “IRI has identified the key category, consumer segment and location impacts of Amazon’s acquisition of Whole Foods. Results from this study reveal that the combination of Amazon and Whole Foods is accelerating dramatic shifts in shoppers’ expectations around assortment, pricing, home deliveries and e-commerce.”

The IRI Market Shift Study series includes additional reports addressing key questions in the retail marketplace today, including:

  • How to compete with new retailers in the U.S. market
  • How to compete with retailers that are rapidly expanding into new markets
  • How to measure market share when more than 50 percent of food dollars are purchased outside traditional CPG outlets

The insights are available now in three different packages to meet the varying needs of different retailers and manufacturers. For more information, contact IRI at [email protected].

Helpful Links

Lidl Market Shift Study Press Release: https://www.iriworldwide.com/en-US/insights/news/New-IRI-Report-Analyzes-Impact-of-Lidl%E2%80%99s-Entry-into-the-U-S-Market

Aldi Market Shift Study Press Release: https://www.iriworldwide.com/en-US/insights/news/IRI-Report-Analyzes-Impact-of-ALDI%E2%80%99s-Expansion

About the IRI Partner Ecosystem:

IRI fundamentally believes that delivering differentiated growth for clients requires deep, highly integrated partnering with a variety of best-of-breed companies. As such, IRI works closely with a broad range of industry leaders across multiple industries and sectors to create innovative joint solutions, services and access to capabilities to help its clients more effectively collaborate and compete in their various markets and exceed their growth objectives. IRI is committed to its partnership philosophy and continues to actively enhance its open ecosystem of partners through alliances, joint ventures, acquisitions and affiliations. The IRI Partner Ecosystem includes such leading companies as 84.51°, Adobe, The Boston Consulting Group, comScore, Experian, GfK, Gigwalk, Ipsos, Mastercard Advisors, MaxPoint, Pinterest, Oracle, Research Now, Simulmedia, SPINS, Survey Sampling International, Univision, Viant and others.

About IRI

IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organizations, retailers and media companies to grow their businesses. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI helps to guide its more than 5,000 clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers and deliver market-leading growth. A confluence of major external events — a revolution in consumer buying, big data coming into its own, advanced analytics and automated consumer activation — is leading to a seismic shift in drivers of success in all industries. Ensure your business can leverage data at www.iriworldwide.com.

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