The Briefing Room
General Category => Economy/Business => Topic started by: mountaineer on February 11, 2017, 02:31:01 pm
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Why Whole Foods is now struggling
Caitlin Dewey
Washington Post/MSN - EXCERPTED
Feb. 10, 2017Organic food has never been so popular among American consumers. Ironically, that’s bad news for the brand that made organic a household name — namely, the Austin-based Whole Foods.
On Wednesday, Whole Foods reported what is arguably its worst performance in a decade, announcing its sixth consecutive quarter of falling same-store sales and cutting its outlook for the year. The company is closing nine stores, the most it has ever closed at one time. A mere 16 months ago, Whole Foods predicted it would grow its 470 U.S. locations to more than 1,200.
The problem is one that chief executive John Mackey probably didn’t predict when he first opened Whole Foods as a neighborhood natural foods store 36 years ago: Organics, then a fringe interest, have become so thoroughly mainstream that organic chains now have to face conventional big-box competitors. Mass-market retailers were responsible for 53.3 percent of organic food sales in 2015, according to the Organic Trade Association; natural retailers clocked in just north of 37.
And Whole Foods is hardly the only store feeling the squeeze: Sprouts and Fresh Market, the second- and third-largest publicly traded organic stores, have also seen falling stock prices. ...
Read rest of article here (http://www.msn.com/en-us/money/companies/why-whole-foods-is-now-struggling/ar-AAmLPyD?li=BBnbfcL)
Has nothing to do with high prices that people recovering from Obama's economy can't afford? :shrug:
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You can buy organic food anywhere, especially online. The point of these stores has vanished.
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Yeah, that's what the article concedes. WF's product is not exactly unique, and the organics at Walmart or Kroger are a heck of a lot cheaper.
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Yeah, that's what the article concedes. WF's product is not exactly unique, and the organics at Walmart or Kroger are a heck of a lot cheaper.
My niece gets organic produce from HEB
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I have shopped at Whole Foods on occasion when I visit a friend who lives near the store . For a long time, WF was about the only store where I could get food that conformed to my restricted diet. Now most supermarkets have something to fill my needs.
My friend has a wealth of choices for food shopping near her that I don't have. My favorite is Trader Joe's. Not necessarily organic or healthy, but the prices are lower than WF and the quality is comparable.
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Every few weeks I visit a nearby city where there happens to be a TJ's, so I've stopped a few times for Asian sauces not available in my small town. A Whole Foods recently has been erected nearby, so the next time I'm in the big city I intend to check it out.
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I shop at Aldi's, which is owned by the brother or cousin of the owner of Trader Joes. They have an abundance of gluten free, organic, and the like, and for for cheaper compared to chains like Whole Foods. That's just one chain of many.
WF is pretty much a relic now from it's glory days in the 90's and 00's, as is it's overpriced stuff.
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I shop at Aldi's, which is owned by the brother or cousin of the owner of Trader Joes. They have an abundance of gluten free, organic, and the like, and for for cheaper compared to chains like Whole Foods. That's just one chain of many.
WF is pretty much a relic now from it's glory days in the 90's and 00's, as is it's overpriced stuff.
We just had an Aldi's open up, pretty interesting selection and very cheap, but those crowds are insane. I've only gone twice and it is like black Friday times ten.
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I love Aldi, especially around Christmastime, when they put out German goodies like stollens.
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I shop at Aldi's, which is owned by the brother or cousin of the owner of Trader Joes. They have an abundance of gluten free, organic, and the like, and for for cheaper compared to chains like Whole Foods. That's just one chain of many.
WF is pretty much a relic now from it's glory days in the 90's and 00's, as is it's overpriced stuff.
I have an Aldi's near me, but it's in a dying shopping center next to a housing project. The store reflects the neighborhood -- seedy. And I wouldn't want to shop there at night.
That said, once I bought some nice strawberries at Aldi's for 99 cents a pound. Berries are as much as $4.00 a pound at the traditional supermarket near me.
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I love Aldi, especially around Christmastime, when they put out German goodies like stollens.
The store near me also sells some oddball stuff -- things you wouldn't find in most supermarkets. Friend of mine was looking for a canopy to use for tailgating. Aldi's had one for sale, so at my suggestion, this friend went to Aldi's to buy it. The canopy turned out better than some really expensive ones elsewhere.
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I love Aldi, especially around Christmastime, when they put out German goodies like stollens.
If it wasn't for the crowds, I probably would like it. I may need to find a better time to go.
I'm keen on my local Mexican Mercados. Great ingredients, on-site butcher, on-site baker, on-site tortilla factory, on-site tamales being made.
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I love Aldi, especially around Christmastime, when they put out German goodies like stollens.
I know. They really do up Christmas. You can buy some real sweet imported things too, like Irish cheese and chocolates and such.
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I shop at Aldi's, which is owned by the brother or cousin of the owner of Trader Joes. They have an abundance of gluten free, organic, and the like, and for for cheaper compared to chains like Whole Foods. That's just one chain of many.
WF is pretty much a relic now from it's glory days in the 90's and 00's, as is it's overpriced stuff.
Brother. Both were involved in starting Aldi in Germany.
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Well, they'll have to adapt. Lowering prices to parity with what the organic section at a Kroger (whatever they're called where you are) would be a start.
We only go to Whole Foods to buy things you can't get at Kroger (called Dillons here in Kansas), Sam's Club, or one our local Asian groceries (Tuscan kale and whole organic chickens being the only things that come readily to mind in that category), and only then in the gaps between times when we have a reason to go further afield to a place with a Trader Joe's.