Whole Foods Market, the popular and yet financially aloof grocer that has had trouble expanding its customer base, is finally conceding to the idea that it needs to lower its prices — for a certain number of grocery staples.
According to Quartz, disappointing sales in both 2013 and 2014, due to the preservation of a price range which kept “a certain segment of grocery shoppers at bay,” has finally taught Whole Foods that it needs a new pricing strategy.
What’s more, as competitors like Wal-Mart continue to expand their organic grocery options, Whole Foods’ niche is losing influence.
Earlier this month, during an earnings call, Whole Foods co-CEO Walter Robb described the need to meet the company’s competitors in terms of pricing for staple items.
“We’re going to be relevant on price,” said Robb. “We’ve said that before; we’ll say it again. Our tracking of competitors’ pricing and indexes is much more sophisticated now than it was two or three years ago. We know where we stand relative to the others, and yes, of course on the items that are ubiquitous we’re going to be in and we’re going to have to price them right.”