Whole Foods Aims To Change Its ‘Pricey’ Reputation

LOS ANGELES (CBS) — Whole Foods is trying to change its reputation for being too pricey.

The grocery chain is offering more promotions and discounts in all of its stores, and lately it has held many of its grocery prices flat despite its own costs rising.

Whole Foods executives say that while certain product prices may be going up, the number of good deals consumers will find will make up for that.

In its recent quarter, Whole Foods opened six stores, focusing on these new markets where its says rent is lower, square footage is smaller and competition for natural, organic food isn’t as competitive, according to a report in the Wall Street Journal.

Core customers at Whole Foods spend, on average, nearly three times more than new customers, the company told the Journal.

Whole Foods also is facing new competition. Lower-priced organic grocer Trader Joe’s is expanding its geographic reach from the two coasts.

Over the past few months, Whole Foods signed eight new leases for smaller stores averaging 33,000 square feet, which is about 25% smaller than some of its traditional stores. The company is on track to open 24 to 27 new stores in fiscal 2012 and another 28 to 30 in fiscal 2013.

  • Marie

    Good idea for Whole Foods to lower its prices, since it’s always been much too expensive. I’m glad to see they’re becoming more realistic. Now, if only they could do something about their snobby, elitist clientele – worst bunch of jerks.

  • M.Freydig

    Whole Foods will now accept food stamps. There goes the neighborhood.

    • LastGirl

      They’ve been accepting food stamps for years. It’s not a new thing.

    • Richard B

      What a pompous, arrogant jerk. Therebut for the grace of God you go and rather than be grateful for your blessings you mock the less fortunate. Nice character. I hope u don’t have any children.

  • Frank G.

    I like Whole Foods but shop there less and less. My store (at Santa Monica and Fairfax in West Hollywood) has gotten worse and worse over the years at leaving prices off of more and more goods, especially produce. Many times, when I ask a clerk the price, he doesn’t know. Perhaps they hope to disguise their prices this way but for me it just discourages me from shopping there. A real shame.

  • Taezan

    Excuse me now while I go hug a tree.

  • Meg

    I recently noticed that the prepared foods prices skyrocketed. Darn it!!!! I also noticed some staples were on sale and sold out. I liked things the way they were. I need a new grocery store. Ugh!!!!!

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