Customers balk at Whole Foods’ prices
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Compounding the problem at Whole Foods is that those who take advantage of online shopping could make the in-store experience more difficult for others. Prime shoppers, whose job it is to fulfill online orders, make for crowded stores and longer lines, according to RetailWire. An analyst the news outlet spoke to called shopping in some Whole Foods stores “a nightmare” because of the volume of order-pickers.
Another challenge facing the future of the company, according to RetailWire, is that, as a big business, the brand has lost much of its reputation for buying and selling “local,” an attribute that is appealing to the Whole Foods customer. In recent years, the company has shifted to more of a centralized purchasing model, more along the lines of a mainstream supermarket chain. This has left less shelf space for locally-grown or produced products. The grocer has taken steps over the last year to add more local purchasing back into the mix, but its reputation for offering locally-grown foods has taken a hit. Finally, Whole Foods is still dealing with its reputation for being pricier than its competitors. As organic foods become more mainstream, lining shelves even at discount grocers like Aldi, Whole Foods will lose some of its customer base, says RetailWire. The value equation is simply not on the side of Whole Foods, especially, GlobalData Managing Director Neil Saunders told RetailWire. Its customer service has a reputation for being “surly, which undermines justification for premium pricing.”
Why Whole Foods Might Not Survive 2022
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By Gina LaVecchia Ragone AND Ashley Steinberg/Updated: Dec. 31, 2021 10:07 am EST
Customers balk at Whole Foods’ prices
Compounding the problem at Whole Foods is that those who take advantage of online shopping could make the in-store experience more difficult for others. Prime shoppers, whose job it is to fulfill online orders, make for crowded stores and longer lines, according to RetailWire. An analyst the news outlet spoke to called shopping in some Whole Foods stores “a nightmare” because of the volume of order-pickers.
Another challenge facing the future of the company, according to RetailWire, is that, as a big business, the brand has lost much of its reputation for buying and selling “local,” an attribute that is appealing to the Whole Foods customer. In recent years, the company has shifted to more of a centralized purchasing model, more along the lines of a mainstream supermarket chain. This has left less shelf space for locally-grown or produced products. The grocer has taken steps over the last year to add more local purchasing back into the mix, but its reputation for offering locally-grown foods has taken a hit. Finally, Whole Foods is still dealing with its reputation for being pricier than its competitors. As organic foods become more mainstream, lining shelves even at discount grocers like Aldi, Whole Foods will lose some of its customer base, says RetailWire. The value equation is simply not on the side of Whole Foods, especially, GlobalData Managing Director Neil Saunders told RetailWire. Its customer service has a reputation for being “surly, which undermines justification for premium pricing.”
Another challenge facing the future of the company, according to RetailWire, is that, as a big business, the brand has lost much of its reputation for buying and selling “local,” an attribute that is appealing to the Whole Foods customer. In recent years, the company has shifted to more of a centralized purchasing model, more along the lines of a mainstream supermarket chain. This has left less shelf space for locally-grown or produced products. The grocer has taken steps over the last year to add more local purchasing back into the mix, but its reputation for offering locally-grown foods has taken a hit.
Finally, Whole Foods is still dealing with its reputation for being pricier than its competitors. As organic foods become more mainstream, lining shelves even at discount grocers like Aldi, Whole Foods will lose some of its customer base, says RetailWire. The value equation is simply not on the side of Whole Foods, especially, GlobalData Managing Director Neil Saunders told RetailWire. Its customer service has a reputation for being “surly, which undermines justification for premium pricing.”
Other grocery store chains are coming out ahead
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Whole Foods, meanwhile, told the Inquirer in a statement, “Whole Foods Market continues to grow, and we strongly dispute this portrayal of the health of our business. In addition to offering a safe in-store shopping experience, we’re proud we’ve been able to rapidly expand grocery delivery and pickup to meet the needs of customers.”
But with Whole Food’s price points, the chain may not be built to last.
