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1500 employees set to be laid off is very minuscule at the end of the day, and probably wont have an impact on NYC Whole Food Market. 1500 employees and around 400 and something Whole Food Chains nationwide is just a dent in their work force. As for Whole Foods? The brand is just too expensive for the average joe and another symbolism of inequality and elitism in the city. When I visited NC, and shopped at their Whole Foods, I was blown away on how cheap their foods were compared to chains in Manhattan. Big problem here in NYC is that Whole Foods is just to expensive, and lately the city had caught Whole Foods products with marked up prices and patrons probably bought the product even though marked up in price. What Whole Foods needs to do is to expand its low cost model especially in areas of lower socio economics or transitional neighborhoods to grab market share of supermarkets. The regular Whole Foods chain needs to remain solely in areas where the residents have on average a 6 figure income. If Whole Foods lower its price on its goods in its regular chains, they might loose costumers especially amongst those who are elitist about food or don't want to see lower income folks shopping at a local whole foods.
1500 employees set to be laid off is very minuscule at the end of the day, and probably wont have an impact on NYC Whole Food Market. 1500 employees and around 400 and something Whole Food Chains nationwide is just a dent in their work force. As for Whole Foods? The brand is just too expensive for the average joe and another symbolism of inequality and elitism in the city. When I visited NC, and shopped at their Whole Foods, I was blown away on how cheap their foods were compared to chains in Manhattan. Big problem here in NYC is that Whole Foods is just to expensive, and lately the city had caught Whole Foods products with marked up prices and patrons probably bought the product even though marked up in price. What Whole Foods needs to do is to expand its low cost model especially in areas of lower socio economics or transitional neighborhoods to grab market share of supermarkets. The regular Whole Foods chain needs to remain solely in areas where the residents have on average a 6 figure income. If Whole Foods lower its price on its goods in its regular chains, they might loose costumers especially amongst those who are elitist about food or don't want to see lower income folks shopping at a local whole foods.
Whole a Foods is opening up the 365 brand for those transitional neighborhoods you speak of. likewise the company that owns Trader shoes has Aldis for its less prestigious brand.
1500 employees set to be laid off is very minuscule at the end of the day, and probably wont have an impact on NYC Whole Food Market. 1500 employees and around 400 and something Whole Food Chains nationwide is just a dent in their work force. As for Whole Foods? The brand is just too expensive for the average joe and another symbolism of inequality and elitism in the city. When I visited NC, and shopped at their Whole Foods, I was blown away on how cheap their foods were compared to chains in Manhattan. Big problem here in NYC is that Whole Foods is just to expensive, and lately the city had caught Whole Foods products with marked up prices and patrons probably bought the product even though marked up in price. What Whole Foods needs to do is to expand its low cost model especially in areas of lower socio economics or transitional neighborhoods to grab market share of supermarkets. The regular Whole Foods chain needs to remain solely in areas where the residents have on average a 6 figure income. If Whole Foods lower its price on its goods in its regular chains, they might loose costumers especially amongst those who are elitist about food or don't want to see lower income folks shopping at a local whole foods.
You are not making any sense.
For several years now NYC government has begged; pleaded and plotted with upscale supermarkets to open branches in low income "starved" areas of the City. This to give residents of those areas access to better quality and wider variety of healthy foods often at lower prices. The City also pushed hard to get these places to accept food stamps.
Yorkville is hardly wholly wealthy. Neither is the Gowanus area of Brooklyn. Both stores along with other WFs, Trader Joe's and even Fairway attract a wide variety of customers from various demographics. The very wealthy have Citarella, Grace's Market, Gourmet Garage and a host of other small speciality places where they can spend $35 for a jar of Dijon mustard...
1500 employees set to be laid off is very minuscule at the end of the day, and probably wont have an impact on NYC Whole Food Market. 1500 employees and around 400 and something Whole Food Chains nationwide is just a dent in their work force. As for Whole Foods? The brand is just too expensive for the average joe and another symbolism of inequality and elitism in the city. When I visited NC, and shopped at their Whole Foods, I was blown away on how cheap their foods were compared to chains in Manhattan. Big problem here in NYC is that Whole Foods is just to expensive, and lately the city had caught Whole Foods products with marked up prices and patrons probably bought the product even though marked up in price. What Whole Foods needs to do is to expand its low cost model especially in areas of lower socio economics or transitional neighborhoods to grab market share of supermarkets. The regular Whole Foods chain needs to remain solely in areas where the residents have on average a 6 figure income. If Whole Foods lower its price on its goods in its regular chains, they might loose costumers especially amongst those who are elitist about food or don't want to see lower income folks shopping at a local whole foods.
The cost of doing business is more expensive in NYC than in NC.
And your other point about shopper elitism is a stretch (and I think you know it). I don't care who shops for their groceries beside me. When I go out of the way to shop at Whole Foods for particular items, it's because of their advertised ethos when it comes to sourcing product. I'm happy to pay the slightly higher prices because I assumed that's the cost of certain anti-cruelty and healthy farming practices, and also I liked to think that the staff were being compensated fairly. So, lowering prices would be a turn off for me because it would seem to be compromising those kinds of ideals. I have never looked at their annual report, so I really don't know if any of that is true, but that's always been the impression and the draw for me as an average WF customer.
And your other point about shopper elitism is a stretch (and I think you know it). I don't care who shops for their groceries beside me. When I go out of the way to shop at Whole Foods for particular items, it's because of their advertised ethos when it comes to sourcing product. I'm happy to pay the slightly higher prices because I assumed that's the cost of certain anti-cruelty and healthy farming practices, and also I liked to think that the staff were being compensated fairly. So, lowering prices would be a turn off for me because it would seem to be compromising those kinds of ideals. I have never looked at their annual report, so I really don't know if any of that is true, but that's always been the impression and the draw for me as an average WF customer.
Completely agree. Had that thought immediately.
And I would bet that compromise they will indeed - that was the point of my story. It has already started.
For several years now NYC government has begged; pleaded and plotted with upscale supermarkets to open branches in low income "starved" areas of the City. This to give residents of those areas access to better quality and wider variety of healthy foods often at lower prices. The City also pushed hard to get these places to accept food stamps.
Yorkville is hardly wholly wealthy. Neither is the Gowanus area of Brooklyn. Both stores along with other WFs, Trader Joe's and even Fairway attract a wide variety of customers from various demographics. The very wealthy have Citarella, Grace's Market, Gourmet Garage and a host of other small speciality places where they can spend $35 for a jar of Dijon mustard...
Yorkville and Gowanus are hardly wholly wealthy, but Tribeca damn sure is....
__________________
"The man who sleeps on the floor, can never fall out of bed." -Martin Lawrence
Whole Foods is losing $$$ because they have gone downhill in many ways.
Recently, to cite just one example, they simply discontinued an entire line of vitamins without offering alternatives or explaining anything to their workers on the floor.
One of the store workers told me that they had been removed for "redesign in packaging" - not a change in the product, mind you, but a stupid branding thing. I would contribute that the person in "corporate" who decided that was a good idea should be fired, and pronto. I called the regional office and was told the items were in stock but the stores were not ordering them. In the end, the national office admitted, finally, that the line had been discontinued. Many phone calls, lots of run-around, little competence. I did learn from several store workers that Whole Foods corporate is "simply awful" (and I quote).
It is no longer a competently run company, which does not bode well for the future. There is also an air of desperation.
I would suggest that they are not offering cheaper options because they want to expand their market and appear less elite, but because they are broke and the profit margin is larger.
You're incoherent and wrong.
Read their latest annual report to get a bigger picture of the company. WF's has just realized that their old model isn't working as efficiently as it once was so they need to reorient their model.
In many ways WF has become bloated because consumer tastes are starting to shift. WF's carries way too much inventory which leads to higher overhead. WF's isn't known for running a tight ship when it comes to inventory and labor and in the past this was fine because there was less competition in the grocery business and margins were higher. WF's grew around opening stores in the suburban West, Midwest, and South (they only have 15 stores in NY compared with 79 in CA). This worked for them as the suburbs were expanding but lately there's been a shift towards major urban centers and their model doesn't work as well in these areas and one major reason is competition.
The opening of the 365 outlets will most likely be a huge boon. Aldi's, Trader Joes, and Stu Leonards are mega successful with this model. WF's has about 4k SKU's that they produce which is comparable to what TJ's carries. Are their products as exciting as TJ's? No. Have they tried to make them as exciting? No. Do they have to be to be successful? Not necessarily.
As BronxGuyanese mentioned, NYC is not representative of the rest of the nation. WF's did not grow into what it is because they are only for the wealthy shopper. Just like Chipotle is $10 in NYC vs $7 in Philly or Charlotte, outside of NYC, WF is more similar to a Wegmans.
Last edited by wawaweewa; 09-29-2015 at 11:35 PM..
Read their latest annual report to get a bigger picture of the company. WF's has just realized that their old model isn't working as efficiently as it once was so they need to reorient their model.
In many ways WF has become bloated because consumer tastes are starting to shift. WF's carries way too much inventory which leads to higher overhead. WF's isn't known for running a tight ship when it comes to inventory and labor and in the past this was fine because there was less competition in the grocery business and margins were higher. WF's grew around opening stores in the suburban West, Midwest, and South (they only have 15 stores in NY compared with 79 in CA). This worked for them as the suburbs were expanding but lately there's been a shift towards major urban centers and their model doesn't work as well in these areas and one major reason is competition.
The opening of the 365 outlets will most likely be a huge boon. Aldi's, Trader Joes, and Stu Leonards are mega successful with this model. WF's has about 4k SKU's that they produce which is comparable to what TJ's carries. Are their products as exciting as TJ's? No. Have they tried to make them as exciting? No. Do they have to be to be successful? Not necessarily.
As BronxGuyanese mentioned, NYC is not representative of the rest of the nation. WF's did not grow into what it is because they are only for the wealthy shopper. Just like Chipotle is $10 in NYC vs $7 in Philly or Charlotte, outside of NYC, WF is more similar to a Wegmans.
How dumb is recommending reading THEIR latest report (about themselves).
Speaking of incoherence.
In no way does WF carry "too much inventory." They are out of absolutely everything most of the time as anyone who actually shops there is fully aware. If anything, they may carry too much inventory of the things nobody wants, while also somehow being unable to understand what people want and would buy. This speaks of poor leadership and incompetent management, again, things that do not bode well.
Finally, most of my orientation is based in conversations with people who actually work there. For now.
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