Whole Foods Attempts to Recast Its Image
Whole Foods Market is working to recast its high-end image as consumers are reducing discretionary spending in these difficult economic times, according to a report in the New York Times.
Although once a darling of Wall Street, Whole Foods sales actually began slowing even before the economy slowed so dramatically. Now the Austin, Texas,-based operator of 270 stores is offering consumers deeper discounts, adding lower-priced store brands and emphasizing value in its advertising, according to the report.
The company is also inviting customer to budget-focused store tours to convince people that Whole Foods Market can be an economical place to shop.
But the budget claims are no easy sell, according to the New York Times, at a store that long ago earned the nickname” Whole Paycheck.”
Whole Foods acknowledges it is fighting strong consumer perceptions about the chain’s prices, and Walter Robb, the company’s co-president, told the New York Times that some of it is deserved. He added, however, that the company is working hard to challenge competitors on price.
“I’m getting a little tired of that tag around our neck,” Robb told the New York Times, referring to the nickname. “We are a lot more competitive than people give us credit for. We challenge anyone on like items.”
Whole Foods’ attempted image makeover comes at a difficult time in food retailing as shopper struggle to make ends meet with mounting food and fuel prices. Many shoppers are trading to lower-cost stores and discounters to stretch their dollar.
An additional challenge for Whole Foods is the slowdown in organic food growth. A study by Bellevue, Wash.-based The Hartman Group reveals that organic food sales are leveling off after several years of double-digit growth.