With the shift in other supermarkets carrying more organic and "luxury" items like Jewel and Mariano's purchasing Dominick's locations and building stores that carry a wide range of organic to normal shelf items, Whole Foods isn't the high end gem it once was. You can now get the things you got there at regular stores (that have more acceptable pricing). My guess is this is putting pressure on Whole Foods' growth strategy.
"My guess is this is putting pressure on Whole Foods' growth strategy."
Agree.
And it will be interesting to see the exact product mix of that store is vs. the one that is located where I am.
My guess (in addition to what the article says) it will be quite different.
At a local WF "clone" that I also frequent (just opened) last night I bought some raw pistachios. I didn't even look at the price. When I got to the register they were $13.50 for 8 ozs. (I'm sure WF has a similar product.) My point is that's easily an 1 hour's after tax wage or more in that area. (Maybe 2 hours..) Hard to believe the product mix is going to include items like that.
Anyway growth wise WF could come up with a new brand (which is typically what would happen) but here they decide to use the same premium brand name because, and this is important and in addition to any PR benefit, the people who would shop at an upscale whole foods won't know what goes on at this Whole Foods (if it in fact would even matter to them). It could look like a warehouse and they'd never know that.
Not the same as with a consumer product that makes it into the channel and could destroy your brand name.
