Posts Tagged ‘ WFM investment ’

Whole Foods proactively lowering prices; an opportunity for the patient

May 7, 2014
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Whole Foods proactively lowering prices; an opportunity for the patient

For a retailer, cutting prices generates a certain amount of self-inflicted pain through the P&L. The problem is rather intuitive; existing customers continue to purchase the same amount of goods at the new lower prices (hurts sales growth) and it takes time, to an uncertain extent, to attract new customers to the better value offering. Whole Foods faces a dilemma because its tremendous success over three decades has attracted new competition in the form of copy-cat stores and a change to more up-scaled/organic offerings at traditional grocers. On the company’s conference call, founder, John Mackey, pointed out clearly: “Whole Foods is no longer a bunch of hippies selling products to other hippies”. Anyone visiting the stores knows he is exactly right – Whole Foods is now main-stream for the...

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