BloggingStocks

Whole Foods Market tries to prove it's economical

Posted Aug 4th 2008 1:30PM by Jonathan Berr
Filed under: Products and services, Whole Foods Market (WFMI), Commodities

"Shawn Hebb may have one of America's toughest jobs: convincing people that Whole Foods Market Inc. (NASDAQ: WFMI) can be an economical place to shop," according to The New York Times. I would beg to disagree. His job is the toughest, even harder than John McCain's campaign manager or Michael Vick's PR consultant.

Hebb is the guy who gives tours of America's most uptight grocery chain to convince shoppers that they do not necessarily need to spend $10 for an apple. How bad are things at Whole Foods that the company needs to teach people how to shop?

Whole Foods, down 48% this year, also may be a victim of its own success. Even my humble neighborhood grocery store offers a pretty good selection of organic goods such as Earth's Best baby food and Kashi cereal. I even bought some wild Alaskan salmon on sale a few weeks ago. Why on earth would I need to make a special trip to Whole Foods or any other upscale grocery chain given high gas prices.

Even more troubling, according to The Times, is that interest in organic food is leveling off. This leaves Whole Foods in a real organic pickle. "...a big question for Whole Foods is whether even its core customers will continue to pay prices like $6.99 a pound for all-natural, air-chilled chicken breast or $12 for a bag of cherries," the Times says.

Many customers are probably saying goodbye to Whole Foods and hello to Wal-Mart Stores Inc. (NYSE: WMT).

Tags: economy, food inflation, FoodInflation, grocery chains, GroceryChains, WFMI

Reader Comments (Page 1 of 1)

All contents copyright © 2003-2008, Weblogs, Inc. All rights reserved

BloggingStocks is a member of the Weblogs, Inc. Network. Privacy Policy, Terms of Service, Notify AOL