Whole Foods in trouble

[Jenise]

Per an article from CNBC:

Amid stiff competition from smaller chains and grocery delivery services like AmazonFresh, shiny happy grocer Whole Foods is looking to appeal to a broader audience by actually offering a deal. According to Bloomberg, Whole Foods may soon offer a rewards program — a concept the company has resisted for more than 30 years. A spokesperson for Whole Foods confirms that the company plans on testing the program in a store in Princeton, New Jersey this month and will expand the trial to Philadelphia towards the end of this year. The plan is to launch the program nationwide by late 2015.

Customers will be given the option of a physical rewards card as well as a mobile app that can be downloaded for iOS. They will then be able to earn points that can be "redeemed for discounts and store experiences" such as cooking classes. The trial period for the rewards program test is expected to last about six to eight months.

Whole Foods has never offered deals or discounts (except for the occasional Living Social offer) in order to reel in customers. However, as of late, the company has been suffering financially, even though their hot foods section has become a major profit center. This year alone, Whole Foods' stock has fallen "35 percent" and CNN notes that it's the "worst performer in the S&P 500." Now that competitors like Costco, Kroger, Trader Joe's, and even Wal-Mart are offering organic, locally-sourced food (or what some might call Whole Foods' original 'bread and butter') at a much more affordable price point, the do-gooder chain is finally evolving beyond its exclusive niche.

I'm sorry to see it, though I know a lot of people won't be.

I don't wish Whole Foods any ill; on the other hand, I'm not inclined to give them any kudos either.

I am fortunate enough to be in an area that offers lots of alternatives already---and always has, so it's not a new thing---so I don't have to go to WF. I can get the same thing, often for a lower price.

Whole Foods "raised the bar", and in the process then forced other retailers to raise their bar higher, benefiting us all. But if they can't keep up, then they can't keep up, and it's time to get competitive---that's how this whole (foods) capitalism thing is supposed to work, amiright?

One thing---at least in this area; can't speak for others---is that in the 'location, location, location' game, which is always and forever crucial, WF is at a significant disadvantage. They don't have the number of stores that a local chain can operate successfully, and they don't always have them in convenient locations. Why go out of your way to shop at a WF when there's another store that does things just as well, if not better, and is proud to state they are locally owned and operated...and that, maybe, just maybe, they actually listen to their own community? (There's a thought.) Whole Foods, more and more, is looking like just another 'big box' store run by people from somewhere else and taking money out of the community. And Portland is extremely conscious of community and neighborhoods.

Interesting. I always thought they would be making a healthy profit because they seem so resistant to deals.

Small example, most stores around here (from Trader Joes to the dry cleaner) keep colorful stickers on hand to give to kids at the checkout. Not sure of the exact reason, I guess it spreads goodwill and maybe leads to kids wanting to return to the store. My son certainly loves them. But nothing of the sort from WF! Nothing for free!

But as Hoke says, all businesses must evolve.

[David M. Bueker]

My choice is either drive 35 minutes to Whole Foods or buy fresh, local fruit, veggies, meat and dairy all within 5 miles of my house. To top it off the local farms are cheaper than Whole Paycheck.

Gee, tough choices.

[Jenise]

One thing---at least in this area; can't speak for others---is that in the 'location, location, location' game, which is always and forever crucial, WF is at a significant disadvantage. They don't have the number of stores that a local chain can operate successfully, and they don't always have them in convenient locations. Why go out of your way to shop at a WF when there's another store that does things just as well, if not better, and is proud to state they are locally owned and operated...and that, maybe, just maybe, they actually listen to their own community? (There's a thought.) Whole Foods, more and more, is looking like just another 'big box' store run by people from somewhere else and taking money out of the community. And Portland is extremely conscious of community and neighborhoods.

When I lived in Southern California, where there's a Vons or a Safeway or a Ralphs every half mile, I drove 20 miles to shop at Whole Foods--they were that much better. And every one back then was fairly equally upscale. I didn't meet a better one until I went to the one in Santa Fe NM--amazing hot take-out unlike any I'd seen in California. But up here, though I still seek out Whole Foods when I visit Seattle, the stores as a group are by no means equal. They are, in fact, almost surprisingly unequal and it pretty much seems to follow stereotypical stratas of white vs. blue collar. You can literally judge by the cars in the parking lot what you'll find inside. Bellevue, with its parking lot of full of black German luxury autos and SUVs, is not surprisingly a wonderland, especially the meats, wine and cheese/charcuterie departments. The Roosevelt store, nearest U-Dub with lots of Subarus, walk-ins and bus riders, does pretty good in those departments too but excels in the variety of fruit and produce--they obviously cater to a clientele with high personal ethics in their food and wine choices and vegetarians with good incomes. They also have the best bakery department. Where Lynwood, which is near Boeing, is more blue collar and the least well-attended--more limited in produce and meats, terrible for wine. The one in downtown Seattle caters to singles who seem to only buy ready-made foods, wine and beer--produce always looks tired.

I still ogle the good ones because my town, Bellingham, has nothing close. The two Food Coops up here have very high standards and I love them, but the typical Hamster isn't very sophisticated so variety lacks. The best produce selection, especially if one leans organic as I do, is, believe it or not, Fred Meyer. Might not be local but if you want rapini or artichokes, this is pretty much where you have to go. But you'd never buy their meats. I'd kill for a WF, but I don't know if one would actually thrive here--Trader Joe's is the most successful supermarket in this town, so much so that since the day it opened it has hovered around the number 10 slot in the nation.

[Robin Garr]

My choice is either drive 35 minutes to Whole Foods or buy fresh, local fruit, veggies, meat and dairy all within 5 miles of my house. To top it off the local farms are cheaper than Whole Paycheck.

Gee, tough choices.

I hate tough choices.

I'm not sure how I feel about this. Whole Foods isn't right next door, but I can be there in 10 to 15 minutes. On the other hand, I pass two good local specialty stores to get there, one of which - Rainbow Blossom - is a good quality local grocer specializing in "natural" and "organic," and I'd rather support the local, although its selection is less. We've also got dozens of farmers' markets around town, of which two of the largest and best are closer than Whole Foods. And Mary has pretty extensive organic gardens (extensive within the limits of a city lot). AND we've been pretty impressed with Kroger's Simple Truth brands, another competitor in the niche. Oh, and I also have to pass Trader Joe's to get to WF.

Yet all that said, I still go to Whole Foods, for the selection and variety. They do make it a point to take on some local producers, to their credit, although it's only a drop in the bucket.

So, I dunno. I don't hate Whole Foods, even if their CEO is a little bit obnoxious. I won't boycott. I wouldn't want to see it close. But it's only one among lots of options.

I don't hate Whole Foods, even if their CEO is a little bit obnoxious. I won't boycott. I wouldn't want to see it close. But it's only one among lots of options.

Yep, that pretty much sums it up.

Jenise, you've got a good eye for neighborhoods. Your algorithms must be top notch.

Bellevue and the whole east side is a great place to observe those things you mention. When we lived in Bellevue for several years, our daughter wanted to live with her mom instead of out in Horse Heaven Hills of eastern WA, so we started canvassing the area to choose high schools. After careful perusal, she said "Well, I could go to Bellevue HS, but you'd have to buy me the obligatory freshman year BMW3 series and then upgrade me to either an Audi or Mercedes in my junior year, or I can go to Overlake and still drive my old Datsun that I work on myself."

I ended up paying for a used radiator that she installed herself and she graduated from Overlake. Good experience, as the school was dubbed the most "international" in scope (translation: had other than preppy whites), and when she went on to college she was well situated.

I don't generally shop at WF. The one in Sacramento is a good half hour away, and there are two incredible small grocery stores (one of which is Corti Brothers') and the local food co-op that are much closer to our house. It is a really nice store, with an excellent cheese selection, nice hot foods and baked items, and a good produce selection. It's a fine store but no better than those closer alternatives. There's a WF in Davis that I could stop at on my way home from work, but it's a much smaller store with a much more limited selection. The local Nugget Market is just as close, offers a great selection of food, and is cheaper than WF. It's no contest between the two of those.

The worst WF I've been in is the one in Tucson. It is dumpy-looking and has next to nothing that would distinguish it from a reasonably upscale chain grocery store. I was amazed at how bad it was.

I don't generally shop at WF. The one in Sacramento is a good half hour away, and there are two incredible small grocery stores (one of which is Corti Brothers') and the local food co-op that are much closer to our house. It is a really nice store, with an excellent cheese selection, nice hot foods and baked items, and a good produce selection. It's a fine store but no better than those closer alternatives. There's a WF in Davis that I could stop at on my way home from work, but it's a much smaller store with a much more limited selection. The local Nugget Market is just as close, offers a great selection of food, and is cheaper than WF. It's no contest between the two of those.

The worst WF I've been in is the one in Tucson. It is dumpy-looking and has next to nothing that would distinguish it from a reasonably upscale chain grocery store. I was amazed at how bad it was.

A few years ago, but I had occasion to visit the Nugget in Vacaville. I was way more impressed than I thought I would be. They were doing a pretty good job there.

Can't weigh in here. The closest WF is 150 mi away. Did stop in last weekend when In Milwaukee for a concert and was blown away by the $$$ of the cheeses. Nice selections but nothing under $26.00/# the same varieties and producers I can mail order for less including shipping. It is in a young singles area and lots of prepared foods/takeouts with an increasing large section of body care and nutritional supplements. Gone the great and varied dry beans and lots more packaged, prepped stuff with lots of "ingredients". From what I do have sort of available to me I can easily pass and not think twice. So, I think I did weigh in after all

I don't generally shop at WF. The one in Sacramento is a good half hour away, and there are two incredible small grocery stores (one of which is Corti Brothers') and the local food co-op that are much closer to our house. It is a really nice store, with an excellent cheese selection, nice hot foods and baked items, and a good produce selection. It's a fine store but no better than those closer alternatives. There's a WF in Davis that I could stop at on my way home from work, but it's a much smaller store with a much more limited selection. The local Nugget Market is just as close, offers a great selection of food, and is cheaper than WF. It's no contest between the two of those.

The worst WF I've been in is the one in Tucson. It is dumpy-looking and has next to nothing that would distinguish it from a reasonably upscale chain grocery store. I was amazed at how bad it was.

A few years ago, but I had occasion to visit the Nugget in Vacaville. I was way more impressed than I thought I would be. They were doing a pretty good job there.

They've done really well occupying the niche between Safeway on the one end and Whole Foods on the other. They have really nice delis and bakeries, good cheese selections, very good wines and spirits, and a decent meat counter. They're not as organically-oriented as WF, but the quality of their offerings is right up there and their pricing is much closer to Safeway than Whole Foods. There's one about a ten minute drive from here that is where I go for regular grocery shopping. There are Safeway, Raley's, and Sprouts stores much closer, but I just don't like them as much.

A new Whole Foods supermarket just opened in Nashua NH, a ten minute drive from where I live. The nearest food specialty shops in this neck of the woods are in the Boston area, almost an hour's drive away. Whole Foods is the only option around here.

-Paul W.

We make a trip to Portland, ME (an hour away) every month or two. Our first stop is a place called Micucci's Grocery where we spend most of our money. Then we go to Trader Joe's which is a little better than the one in Portsmouth, NH. If there is anything we can't get in the first two stops we go to Whole Foods. There are a handful of items that we get there that we can't find anyplace else. Then we go to dinner in one of any number of outstanding restaurants.

I have been to Whole Foods once or twice in my life. (This is NYC and there are a glut of good markets.) The only thing they sell that is absolutely unique is Styrian pumpkin seeds.

Which one doesn't need every day.

[Jenise]

Can't weigh in here. The closest WF is 150 mi away. Did stop in last weekend when In Milwaukee for a concert and was blown away by the $$$ of the cheeses. Nice selections but nothing under $26.00/# the same varieties and producers I can mail order for less including shipping. It is in a young singles area and lots of prepared foods/takeouts with an increasing large section of body care and nutritional supplements. Gone the great and varied dry beans and lots more packaged, prepped stuff with lots of "ingredients". From what I do have sort of available to me I can easily pass and not think twice. So, I think I did weigh in after all

Speaking of nutritional supplements, the one in West Vancouver near Bill Spohn's house? There's not so much of the body care/holistic/supplements thing I see in Seattle, but there's like a whole aisle of big cans of powdered protein and energy boosters like nothing I've ever seen in an American WF!

[Jenise]

We make a trip to Portland, ME (an hour away) every month or two. Our first stop is a place called Micucci's Grocery where we spend most of our money. Then we go to Trader Joe's which is a little better than the one in Portsmouth, NH. If there is anything we can't get in the first two stops we go to Whole Foods. There are a handful of items that we get there that we can't find anyplace else. Then we go to dinner in one of any number of outstanding restaurants.

Either Bon Appetit or Food & Wine did a very good article in the past year on the restaurant scene in Portland, Maine, Carl, did you see it? It's definitely something to be jealous of for those of us who live in restaurant Siberias.

For example: http://www.allmenus.com/me/portland/356 ... ster/menu/

Love the Lobster Pernod!

Oddly, for Northern California, I lived in something of a grocery, well, not a desert exactly, but at least an arid zone. The nearest Trader Joe's was 8 miles down the road, 20 to the Whole Foods. The only place to get decent produce was the farmer's market. The last few years we got our own Trader Joe's (which had 1kg of Harry and David pears for $6 yesterday!), and a New Leaf, which predates Whole Foods, just a small South Bay chain, opened up in the next town. Pricey, but good stuff. And just recently they broke ground for a Whole Foods. When it rains, it pours.

We just moved to London and the Whole Foods in Kensington is hands down the most astonishingly excellent supermarket I have ever seen

[Jenise]

John, good to hear from you. Not surprised considering the state of London today and the Kensington 'hood in particular. When I lived in the Manchester (Cheshire) area 30 years ago, the grocery mecca of note was the food hall at Harrod's. I would hop the train and head south every so often just to load up on interesting things both fresh and exotic, including things exotic to a Brit that were quite usual to someone from Southern California. Back then, in Manchester in winter, and until a Sainsbury's opened in Winslow, we'd go months without seeing fresh produce other than cabbage and root vegetables.

But--now you're in London? How are you liking that--or ( ) were you there before? Before India, before Japan, were you in London or am I mixing you up with Robert Helms (another American expat wine afficianado rather well-placed in the international finance world). Robert lived in the St. John's Wood nabe, and has since retired in Italy.

Jenise

We were in Argentina for a few years when the kids were smaller,then back in US for 6 years, then Tokyo for about 4 years and India for about 4 years. We were back in the US for 18 months and now we are back on the road again. London is an amazing city. Price tag is nutty but YOLO I guess.

Getting back into wines more here....India really out a damper on that