What Will Whole Foods do Next?

The Lempert Report
January 05, 2015

Welcome to the first Lempert Report of 2015!

You may remember that Whole Foods Markets recently unveiled their first national media campaign. So has it made a difference to shoppers? According to a recent article from media analytics company Brand Index, yes, it seems to be working. 

Brand Index found that Whole Foods' performance when it came to both ad awareness and purchase consideration has grown in the weeks since the campaign launched. According to their data, the retail giants' ad awareness rose by three points in the "value matters,” campaigns’ opening weeks. Following its launch, Brand Index found that Whole Foods' purchase consideration also rose. One survey found that 16 percent of consumers now say they would consider shopping at a Whole Foods on their next grocery outing, up from 14 percent prior to the launch of the campaign.

But is this going to be enough to fight off the negative “Whole Paycheck” perception?  That might take a little more. Consumers will need to see at least some change when it comes to price points. Bottom line is that the number of retailers offering healthy, organic products and produce is constantly growing and at a cheaper price. Like Walmart and their launch of Wild Oats brand. 

In the meantime, one analyst is predicting a Whole Foods buying spree in 2015 to absorb their competitors. According to stock analyst Charles Grom of Sterne Agee, Whole Foods Market next year will use its might to buy up the competition in the rapidly growing health and wellness field. According to Supermarket News, Grom speculated that potential candidates include privately held Earth Fare, Fletcher, N.C., as well as Fairway Markets, a New York-based specialty player.