Amazon's own Prime members prefer Walmart over Whole Foods. It's a worrying sign for the tech giant's grocery aspirations.
Amazon has spent years building out its digital grocery business. But a new survey suggests that a majority of its Prime customers are looking to another retailer for groceries that they can pick up or have delivered: Walmart.
About half of Prime members said that they had shopped at Walmart for groceries in a similar survey conducted in 2022, while 57% said that they had grocery-shopped at Amazon Fresh or on Amazon.com. for Prime members who order less than $150 worth of groceries for delivery at a time. Previously, Prime members could get free delivery from Amazon Fresh if they ordered at least $35 in items.
Although they tend to prefer Walmart, Amazon Prime members are much more likely to order from Whole Foods than non-Prime members are.Despite Walmart gaining ground, Coresight found that Prime members were still more likely than non-Prime subscribers to order from Amazon-owned grocers. Just 7% of non-Prime shoppers said that they had ordered groceries online from Whole Foods in the last year, roughly half the share of Prime members who said the same.
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