Whole Foods

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Customer Survey Says Whole Foods Isn’t Worth the Price

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Analyst Kelly Bania downgraded organic grocer to an ‘underperform’ after surveying customers
Whole Foods

Susan Montgomery / Shutterstock

Survey of over 1,000 Whole Foods customers reveals customer discontent.

Whole Foods might be in some deep water if it doesn’t change its ways. BMO Capital Markets analyst Kelly Bania conducted a survey of more than 1,000 customers. As a result of her findings, she slashed her rating and price target for Whole Foods, downgrading the organic grocer to an ‘underperform,’ according to CNN Money.

Over 70 percent of customers in the survey said they had not noticed any price changes in the past three months despite the company’s efforts to lower prices. Additionally, only 24 percent of customers said the organic products at Whole Foods were ‘definitely’ superior in quality to the organic food at other grocery stores. 54 percent said the quality was ‘sometimes’ better, and 22 percent said ‘not at all.’

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Bania writes in her report, “With new competition across the retail landscape in both natural and organics, and more likely coming, we see increasing risk that Whole Foods will have to accelerate and broaden its price investments beyond current expectations to change consumer perception. Lower prices elsewhere continue to be the dominant reason cited by our respondents as to why they are decreasing frequency at Whole Foods.”