UrbanSwirl.com - Lifestyles of Color

Whole Foods supermarket, the organic grocery king is trying to change it's image...no longer does it want to be known as "whole paycheck" or "whole wallet", it wants consumers to think they can get value and quality from its stores.

Whole Foods Market is on a mission to revise its gold-plated image as consumers pull back on discretionary spending in a troubled economy. The company was once a Wall Street darling, but its sales growth was cooling even before the economy turned. Since peaking at the beginning of 2006, its stock has dropped more than 70 percent.

Now, in a sign of the times, the company is offering deeper discounts, adding lower-priced store brands and emphasizing value in its advertising. It is even inviting customers to show up for budget-focused store tours like those led by Mr. Hebb, a Whole Foods employee.

But the budget claims are no easy sell at a store that long ago earned the nickname Whole Paycheck. Told of the company’s budget pitch by a reporter, some Whole Foods customers said they had not noticed cheaper prices; a few laughed.

Walter Robb, the company’s co-president, acknowledged that Whole Foods was fighting strong consumer perceptions about the chain’s prices, and he added that some of that was deserved. But he said the company had made a strong effort to challenge its competitors on price.

“I’m getting a little tired of that tag around our neck,” he said, referring to the nickname. “We are a lot more competitive than people give us credit for. We challenge anyone on like items.”

Whole Foods has its work cut out for it.  I shop there, and I call it "whole wallet".  It is expensive. Period.  They have a lot of good quality and specialty items that aren't easily found elsewhere, but doing all of your grocery shopping there is the equivelent of a car payment. 

I usually buy the speciality items at Whole Foods and the staples at the regular grocery stores. If the economy gets much worse I think I'll just buy everything at the regular store...I really don't NEED organic goat cheese with pepperseeds.

Stores like Whole Foods are going to go the way of the dodo if the economy doesn't turn around.  Organic and specialty foods are a luxury, that can easily be cut from the budget when times get tight.  People may always need food, but they don't need expensive, fancy food...look at Starbucks...they recently shuttered hundreds of stores.  People won't do without coffee.  But when money is tight, the stuff from the local convience store for 99 cents tastes just fine.