Continuing on a topic I discussed in a previous post, Whole Foods find itself once again in the news this week. This week a Forbes article reported that the organic grocers’ quarterly revenue was more than estimated, as Whole Foods continues to attract customers with its high-priced healthy foods.
If this quarter is a sign for the future of Whole Foods, things are looking up after experiencing a year of consistent decline in overall sales and public opinion. The decline in sales and opinion can be traced back to incidents within the organization in June of last year, when an investigation into Whole Foods revealed that the grocer was drastically over charging its customers. This development created a public relations crisis that continues to affect the organization to this day. However, after reporting a record quarter of $4.83 billion, Whole Foods looks to carry its success into next quarter.
Despite all the troubles Whole Foods has experienced in the past year, Whole Foods ended the quarter with its shares selling for 46 cents each. Six cents higher than the 40 cents analyst predicted at the beginning of the quarter. The rise in price per share can likely be attributed to the 3% increase in total sales this last month, where once again Whole Foods overshot analyst estimates.
After Whole Foods shady activities became public knowledge, pop-culture and public opinion labeled Whole Foods as “Whole Paycheck”. In an effort to repair its brand, and the public’s opinion, Whole Foods has continuously worked to diminish the negative reputation it gained through campaigns focusing on lower base prices and in-store promotions.
Another way Whole Foods is looking to shed the negative impressions surrounding its brand, is by promoting cheaper healthy products, and by opening a new chain of stores called “365”. Whole Foods new chain of stores will feature lower prices and more of Whole Foods own products. Whole Foods hopes that with lower prices and a fresh image, 365 will attract more millennials as customers. 365 chains will also look to incorporate Whole Foods’ new digital coupon and promotion strategy as well, in order to reach customers easier.
As Whole Foods, and now 365 look to redefine the American grocery shopping experience, only time can tell if Whole Foods will finally be able to compete with the grocery giants WalMart, and Kroger.