Research Outline

Health Focused Retail Store Shopper Attitudes

Goals

To find information on what consumers are actually looking for when they shop in a health-focused retail store like Whole Foods and how they perceive the value and choice of the own label brands offered within these stores.

Early Findings

Whole Foods

  • Whole Foods, which is based in Austin, Texas-based is known for its organic and natural food offerings.
  • In 2017, Amazon acquired Whole Foods for a total of $13.7 billion.
  • Although the grocery business in the United States is dominated by Walmart, Whole Foods is carving out its own customerbase by catering to Amazon Prime members that have a core focus on health-conscious buyers.
  • Whole Foods currently has over 500 stores in North America and the United Kingdom and the company regards itself as America’s healthiest grocery store.
  • In Whole Foods, Prime members are usually eligible for "certain deals throughout the store, making part of the store experience feel like a members-only club."
  • These deals include various discounts on groceries marked using a variety of color such as a 10% discount off items marked using a yellow sale sign.
  • Prices in Whole Food stores are noticeably higher than the prices available at other grocery shopping venues. The pricing differences usually range between 10% to 20% more. This earned the store the nickname "Whole Paycheck."
  • However, after Amazon acquired the company, prices have been coming down and Whole Foods has been slowly loosing the “Whole Paycheck" nickname.
  • In 2015, Whole Foods' consumer perception suffered after New York City’s Department of Consumer Affairs accused the chain of overcharging. For the first time, the company garnered more negative feedback than positive.
  • However, over the following 9 months that stretched into April 2016, Whole Foods' consumer perception scores creeped back up breaking into positive territory again at the end of November 2016.

Own Label Brands