REPORT Reverdy Johnson,
[email protected] Whole Foods Struggling to Overcome Competition, Prices, Perception Companies: COST, CVS, DLTR, KR, FDO, FWM, RNDY, SFM, TFM, TGT, UNFI, WFM, WMT August 20, 2015 Research Question: Will Whole Foods overcome its perception and reality problems related to high prices and overcharging on weighed food? Summary of Findings Silo Summaries . Whole Foods Market Inc. (WFM) has mounting difficulties in 1) Whole Foods Suppliers overcoming its challenges. Its suppliers feel more pressure to All 5 sources said WFM is increasing its promotional activity as it looks to compete more effectively on price, reduce prices, and competition in the natural/healthy/organic food but none said the company was lowering its everyday space has grown considerably. This is in contrast to Blueshift prices. Sources are divided on the effects of the food Research’s Dec. 16, 2014, report, and shows how Whole Foods weighing scandal; three said it will not have a lasting has stumbled in the last seven months. effect while two believe it has hurt consumer confidence and that WFM management mishandled the . Whole Foods is increasingly focused on lowering prices. Its situation. Competition has become more aggressive, strategies differ by category, region and product price point. Whole and Whole Foods is vulnerable. Sources noted Foods is upping its promotional activity, but only one of nine increased efforts from clubs like COST, mass retailers suppliers and supplier representatives said it is lowering its like WMT, and traditional grocers like KR. everyday prices. Three said vendors alone are eating the promotion costs while three said Whole Foods is sharing the margin hit.