Dive Summary:
- RetailWire BrainTrust members, commenting on a discussion article, advised Whole Foods to not "forget who you are," adding that moving to a middle ground on prices would move the company away from its core proposal of quality fresh and organic items.
- Whole Foods has held prices, offered more discounts and brought in less-expensive products in recent years in an attempt to shed its "Whole Paycheck" reputation, and it attributed much of its success in the past few years to these price image efforts in its 2012 annual report.
- Observers on Wall Street are wondering if those prices have already fallen enough, as the company's shares fell $9.40 to $87.50 last Thursday after management reported that it expects profit margins to decline during the next three quarters.
From the article:
Shares of Whole Foods slid $9.40 to $87.50 last Thursday after management, in reporting first-quarter results, warned that it expects profit margins for the next three quarters to decline compared to last year. The declines were attributed to particularly tough year-ago comparisons but also to continuing investments to improve its pricing message. Better appealing to price-conscious shoppers is said to be more critical as Whole Foods enters smaller, more suburban markets. ...