Tuesday, August 29, 2017
Whole Foods supermarkets, also known as Whole Paycheck because of their high prices, are cutting consumer costs under new ownership. Amazon, the owner, is seeking an image change for the chain and based on wide news reporting, it just might succeed. Amazon can afford to cut prices and go for market share. It can also cross sell in stores, which it is already doing. It will take time for consumers to shift shopping habits but if Whole Foods' new image of cost consciousness spreads, there is a good chance the chain can change its reputation into a low-cost alternative to regular supermarkets. It might never reach the level of discounters like Trader Joe's, but it could become a destination for many more weekly grocery shoppers. The PR move of a price change could lead to a positive reputation change.