Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In
Retail

Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?

Amazon owns two tech-driven brick-and-mortar chains - Amazon Fresh and Whole Foods. We take a closer look at their foot traffic here.

By 
Ezra Carmel
January 24, 2023
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

For over a century, grocery shopping has been an essential part of our daily lives. And because inflation has led many Americans to opt for more meals at home, supermarkets have become an even bigger part of our routines. But that doesn’t mean that grocery shopping has to be a dull affair. Thankfully, many exciting experiences can be found at grocery stores across the country, and perhaps the most exciting development is the infusion of technology into how we shop for food. We dove into the foot traffic data for Amazon’s brick-and-mortar grocery outlets – Amazon Fresh and Whole Foods Market – in order to see how the latest technologies have impacted visits. 

Amazon’s Grocery Gains

Amazon – a retail giant relatively new to the grocery space – launched Amazon Fresh in 2020, and the chain currently boasts over 40 locations nationwide. And in what has been a relatively challenging year for many grocers, Amazon’s brick-and-mortar grocery reach continues to grow, thanks in part to many new Amazon Fresh locations. Amazon-owned Whole Foods had a relatively strong start to the new year as well, with year-over-year (YoY) visits outperforming the overall grocery sector in the first weeks of 2023.

Amazon’s Tech Reaches Whole Foods 

True to its tech roots, Amazon Fresh’s innovations in the realm of brick-and-mortar retail are revolutionizing the way consumers shop for food. Amazon’s "Just Walk Out" shopping and the Amazon Dash Cart allow customers to pay and leave the store without passing through a cashier-manned checkout, while the company’s Amazon One palm-payment system facilitates contactless payment. Now, two Whole Foods locations (and a third-party grocer) also offer “Just Walk Out” technology, and many more Whole Foods locations are offering the option of Amazon’s palm-payment system. 

In February 2022 the first Whole Foods to employ Amazon's “Just Walk Out” technology reopened, following renovations, on Wisconsin Ave. in Washington, D.C. Comparing visit patterns at the Whole Foods location offering “Just Walk Out” technology with visit patterns to nearby stores reveals how shoppers are utilizing this new payment technology. Since the reopening, the “Just Walk Out” Whole Foods has seen a greater share of early afternoon visit times compared to nearby Whole Foods locations. Median dwell times are also lower for the “Just Walk Out” enabled store. This seems to indicate that during the mid-day grocery rush, shoppers are choosing the Whole Foods location with “Just Walk Out” technology because it means they can be in and out faster. 

Look Who’s Walking

A psychographic analysis of the “Just Walk Out” Whole Foods’ visitor base indicates that not only is this location seeing more visits than its neighboring Whole Foods – the visits seem to be coming from a particularly prized consumer segment. 

Using the Spatial.ai: PersonaLive dataset to compare residents of the True Trade Area of D.C. area Whole Foods stores reveals that the trade area of the “Just Walk Out” location has a higher percentage of #SkyHigh, #HighRisers, and #RisingProfessionals population segments. Broadly speaking, these groups are made up of relatively young, well-educated, high-income, and tech-oriented individuals – the type that would be receptive to a cutting-edge grocery shopping experience. 

Interestingly, the “Just Walk Out” Whole Foods’ trade area does not over-index for #Urbanists – consumers known to frequently discuss Whole Foods on social media, among other identifiers. In comparison to trade areas of nearby Whole Foods stores, this location is on the lower side for the percentage of residents in the #Urbanists segment. 

While Whole Foods is traditionally characterized as a health food store popular with #Urbanists, the “Just Walk Out” store is more popular among the tech-oriented population segments #SkyHigh, #HighRisers, and #RisingProfessionals. By bringing “Just Walk Out” to the chain, Amazon is expanding the Whole Foods brand and its recognition as a player in tech-powered shopping. 

Checkout the West Coast

Amazon opened its second “Just Walk Out” Whole Foods in March 2022, this time on the West Coast in Sherman Oaks, CA. This region was a logical landing spot for the next “Just Walk Out” at Whole Foods considering that Southern California already has the most Amazon Fresh locations in the country.

The second Whole Foods with “Just Walk Out” capabilities seems to be a success as well. During the second half of 2022 (Jul-Dec) its visits per square foot were larger than nearby Whole Foods locations. SoCal Whole Foods shoppers seem highly receptive to the frictionless shopping concept and it has proven itself as an efficient store format for the brand. 

A Whole Lot of Visits

Amazon is delivering the technologies born from its growing tech-driven Amazon Fresh grocery chain to the other grocer in its portfolio – Whole Foods. Location analytics shows that Whole Foods visitors are receptive to the Amazon-powered grocery experience and it’s likely that we’ll see the continued expansion of Amazon’s technologies in partnership with other brands and its own brick-and-mortar outlets. 

For updates and more retail foot traffic insights, visit Placer.ai.

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Recent Publications

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
Text Link
Grocery
Text Link
Amazon
Text Link
Whole Foods
Starbucks and Dutch Bros: Short Visits Lead the Way
Planet Fitness: Raising the Bar(bell)
Checking in With Full-Service Restaurants: First Watch, Chili’s, and Outback Steakhouse
RBI and Yum!: QSR Resilience in 2024
Boot Barn and DSW: Stepping Up Their Game
Target’s October Circle Week: A Data-Driven Snapshot
Chipotle, Shake Shack & Wingstop: Dining Success in Q3 2024
Playa Bowls and Tropical Smoothie Cafe: Berry Big Business
Cheesecake Factory & BJ’s Restaurants: Full-Service Success
Checking in on McDonald's and Wendy's 
Sprouts Farmers Market: A Specialty Grocer With a Traditional Twist
CAVA: The Craze Continues
Placer.ai Reaches $100M Annual Recurring Revenue
Catching Up With Carter's 
A Texas Roadhouse and LongHorn Steakhouse Showdown
Placer.ai Mall Index: September 2024 Recap – Labor Day Peaks and Holiday Season Predictions
Albertsons Q3 Check-In
Looking Ahead to the 2024 Holiday Season
Trader Joe's: Continuing to Thrive in 2024
Bowlero and AMF: A Ten-Pin Knockout
Recreational Retail: Store Performance in 2024
Placer.ai White Paper Recap – September 2024
A QSR and Fast-Casual Face-Off
Sam’s Club’s In-Store Retail Media Network Opportunity
The Rising Stars: Six Metro Areas Welcoming Young Professionals
Costco in 2024: A Deep Dive
Sherwin-Williams in 2024: Brighter Than a New Lick of Paint
Life Time and Orangetheory: Premium Fitness Flourishing
C-Stores: More Than A Pit Stop
Darden: Dining Dominance Undeterred 
Placer 100 Index for Retail and Dining: August 2024 Recap
Placer.ai Office Index: August 2024 Recap
Placer.ai Mall Index: August 2024 Recap – Back-To-School In Full Swing
Auto Parts Retailers: The Traffic Continues
Pumpkin Spice Works its Magic Once Again
School Season Sparks Retail Growth
Placer.ai White Paper Recap – July & August 2024
Big Lots’ Big Rightsizing Move in Four Data Points
Fun Away From The Sun: Checking in With Eatertainment
Domestic Migration and Population Growth: Strong Currents Off The Carolina Coast
The Civic Impact of Summer Events
Retail Trends in College Towns: A Back-to-School Snapshot
Five Below and Ollie’s Bargain Outlet: Consumers Still on the Hunt for Discounts
Macy’s & Bloomingdale’s: Into 2024 and Beyond
Limited Time Only: The Trend Continues
Beauty in 2024: Many Ways to Win
Dollar General & Dollar Tree: Powering Ahead in Q2 2024
The Home Depot and Lowe's Foot Traffic Remodel in Q2 2024
Superstore Update: Summer Savings Spree
Placer.ai Mall Index: July 2024 Recap – From Fourth of July to Back-to-School
Placer.ai Office Index: July 2024 Recap
Summer Movie Madness: Blockbuster Films Boost Foot Traffic
Driving Success: Toyota in 2024
Denny’s and IHOP: An All-Day Breakfast Matchup
Warby Parker: Seeing Clearly Now
Planet Fitness at the 2024 Halfway Point
Serving Summer 2024: RBI and Yum! Brands Q2 Foot Traffic
Starbucks, Dutch Bros., Dunkin’: Finding Summer Success
Fast Food and Fast Casual Favorites, Plus CosMc’s Takeoff
Chipotle and Sweetgreen: Fast-Casual in Q2 2024
First Watch, Texas Roadhouse, and Applebee’s: An FSR Roundup
Albertsons Companies: H1 2024 Recap
Teaming Up For Success: Sports Stadium Sponsorships
Limited Time Offers: Price Wars Boost Visits
Placer 100 Index for Retail & Dining: June 2024 Recap
Placer.ai Mall Index: June 2024 Recap
Placer.ai Office Index: June 2024 Recap
Inside Out 2: The New Blockbuster Bringing Crowds Back to Theaters
Petco and PetSmart: A Head to Head
Frozen Delights: Exploring Ice Cream Chains Across America
Placer.ai White Paper Recap – June 2024
Barnes & Noble: Writing a New Story
Small Format Stores - Sprouting, Blooming, and Expanding
Retail and Dining on Father’s Day
Thrift Store Visit Scores
Charting Value Grocery’s Visit Growth
Placer 100 Index for Retail & Dining: Introduction and May 2024 Recap
Digging Into Darden: Q2 2024 Update
2024 Retail and Dining Trends Update
TRU and avid: Midscale Hotels on the Rise 
Diving Into Kroger: A Strong Start to 2024
Placer.ai Mall Index: May 2024 Recap – Mall Visits on the Rebound
Placer.ai Office Index: May 2024 Recap
2024 Memorial Day Recap
Las Vegas: A Tourism and Migration Deep Dive
Eatertainment Chains: Full on Food, Fun, and Foot Traffic
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai Mall Index: April 2024 Recap – Retail Resilience Heading into Spring
Dollar Stores Still Gaining Momentum
Off-Price Apparel Chains After Q1 2024: Demographics in the Balance
Walmart, Target, and Wholesale Clubs Continue to Thrive
Home Improvement and Decor Check In
Placer.ai Office Index: April 2024 Recap – Recovery Continues
Movie Theaters in Q1 2024: A Preview of Coming Attractions?