Whole Foods offers 'Real Steals' to widen appeal
By Joyzelle Davis, Rocky Mountain News (Contact)
Published July 17, 2008 at 9:05 p.m.
How much do you spend each week on your groceries?
Photo by Matt Mcclain / The Rocky
Whole Foods Market customer Mike Nelson shops for produce Thursday at the Belmar store in Lakewood. Whole Foods is trying to change a perception that it caters only to the affluent by offering discounted products.
Kashi Go Lean Crunch
The aisles of the Whole Foods in Lakewood are abloom with colorful signs highlighting "real steal," "all day, every day" values and "good stuff for less."
Those aren't the kind of promotions many shoppers might expect at the nation's biggest organic and natural- foods retailer, which is better-known for its hand-stretched, handmade mozzarella and $58 bottles of aged balsamic vinegar than for its bargains.
But at a time when grocery prices are rising at their fastest pace in 20 years and nearly every budget is crimped by $4-a-gallon gas, Whole Foods is accelerating efforts to battle perceptions that it caters only to the affluent.
The chain is hoping to blow holes into the "Whole Paycheck" moniker or the idea that each bag full of items from one of its markets will cost at least $50.
Whole Foods on Wednesday launched a new "Real Deal" program in stores nationwide that highlights deeply discounted "Real Steals," like whole pineapple for $2.99 and a pound of Patagonian Scallops for $6.99, along with a quarterly newsletter that includes budget recipes and savings tips.
Stores around the country are offering "value tours" to show customers how they can affordably stock their pantry, as well as on-the-spot help from store associates for customers who want to trim their grocery bill.
"There are a lot of preconceived ideas about our stores," said Nancy Kaskel, marketing and community relations director at Whole Foods Belmar, who has led the roughly hourlong tours of the store since January. "That's where our value tours come in."
Whole Foods has tried to refute its "Whole Paycheck" nickname before, including running an advertising campaign in The New York Times in 2006 that touted the chain's low prices.
But the marketing push has gained renewed urgency as cash-strapped consumers consider trading down, and rivals like Wal-Mart and Safeway are there to catch them with expanded offerings of organic and natural foods. Safeway and King Soopers also have the lure of fuel discounts, and both recently introduced $4 generic drug programs.
Ben Friedland, spokesman for Whole Foods' Rocky Mountain region, said the company hasn't done a good job of getting out the word about its lower prices.
"For the long run, we're committed to offering high-quality products at great prices," he said. "What we're really doing at this point is communicating it better."
Whole Foods has more bargains to tout these days after bolstering its lower-priced, private-label brands like 365 Everyday Value and Whole Kids Organic. The Austin, Texas-based retailer offers 2,200 types of private-label products, 15 percent more than last year, including everything from BBQ charcoal to fitness water. A gallon of Whole Foods' private-label organic milk runs $4.99, while conventional milk is $3.69.
King Soopers and Safeway have ramped up their private-label offerings as well, particularly among premium and organic foods. Safeway launched its O Organics line in 2006, and it now includes 350 products. King Soopers last August introduced an expanded array of organic products under its Private Selection brand.
"Our goal as a company is to provide highly competitive pricing every day," said King Soopers spokesman Trail Daugherty. "We monitor our competitors closely so we can achieve our stated goal."
Whole Foods, which started about 28 years ago, was once thought to be immune to economic trends. The company in May reported sales jumped 28 percent to $1.9 billion for the quarter, helped when the chain added Wild Oats markets. But same-store sales rose 6.7 percent, well below Whole Foods' average of 10.9 percent from 2003 through 2007, indicating that some shoppers might be going elsewhere.
Leslie Mundy, a Lakewood resident picking up groceries at the King Soopers across the street, is one of them. She used to shop at Whole Foods once every month or so but now only stops in when she needs an ingredient she can't find elsewhere.
"I always end up spending more there than I intend to," she said, blaming impulse purchases of baked goods and imported cheeses. "With gas what it is, I have to be careful."
Kaskel's message when she leads value tours isn't just about price. She stresses that customers should eliminate waste by buying the right amount of flour, spice or other item from the bulk bin rather than an entire package they may only partially use.
Whole Foods encourages customers to ask for samples of any product so they'll know if they like it, and it refunds money if someone buys a product and doesn't like it - if they have a receipt.
Standing by the store's pizza kitchen, which sells thin-crust pizzas for $7.99 a pound, Kaskel notes that the quality of the food and amount of time saved for the busy households factor into Whole Foods' value.
"The value is the convenience. A lot of people come in to buy lunch and dinner," Kaskel said.
davisj@RockyMountainNews.com or 303-954-2514
Smart shopping tips
Some suggestions from Whole Foods on how to save:
* Buy only what you need. If you're trying a recipe for the first time, you're better buying the specific quantity of rice, flour, etc. from the bulk bins rather than the entire package. Whole Foods restocks its bulk bin items several times a day, so the items are fresh.
* The same goes for produce. While the salad bar or packages of precut vegetables may look pricey, buying only what you need can reduce waste.
* Buy uncut meat and fish and ask the staff to fillet it, which they'll do for free. The butchers will cut, wrap, and season and marinate for no charge.
* Create a weekly meal plan.
* Buy meat and poultry in large, prepackaged trays at reduced "per pound" pricing.
* Ask the butcher to give you enough meat for the number of people in your household, or name a specific dollar amount. Same goes for seafood, cheese and prepared food.
* Look for recipes that can use the same ingredients for at least two meals.
* Keep your pantry stocked with basics, and go shopping only for fresh produce and proteins.
Comparing prices
Product Brand / Whole Foods Market / Sunflower Market / Safeway / King Soopers
Lean ground beef - Store brand $2.99 lb. (80 percent) / $3.49 lb. (85 percent) / $3.49 lb. (80 percent) / $3.49 lb. (80 percent)
Eggs - Nest Fresh: brown large eggs $3.49 / $3.49 / $4.79 / $4.19
Milk - Horizon 1% milk(half-gallon) $3.19 / $2.79 / $3.69 / $3.19
Stick butter - Horizon (16-ounce) $4.99 / $5.79 / $6.69 / $5.49
Ice cream - Ben & Jerry's Karmal Sutra $3.49/ $3.99 / $4.49 / $3.99
Bread - Rudi's whole wheat bread $4.59 / $4.99 / $4.69 / $3.99
Cereal - Kashi Go Lean Crunch $3.59 / $2.99 / $3.89 / $3.59
Apples - Granny Smith $1.99 a pound / $1.49 a pound / $2.29 a pound / $2.29 a pound
Bananas - Organic 89 cents a pound / 77 cents a pound / 89 cents a pound / 89 cents a pound
Rice - Lundberg White Basmati $3.99 / $3.29 / $5.29 /$3.99
Soup Amy's Lentil Vegetable $2.49 $2.29 $2.95 $2.49
Juice RW Knudsen Juice Boxes (3) $2.59 $2.79 $3.55 N/A
Diced tomatoes Muir Glen (14.5-ounce can) $1.69 $1.79 $2.69 $1.89
Nutrition bars Lara Bar $1.39 $1.49 $1.69 $1.39
Baby formula Earth Best Soy (13.2 ounces) $14.69 $16.99 $14.99 $14.99
TOTAL $56.05 / $58.43 / $66.07 / $55.86*
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July 18, 2008
7:25 a.m.
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uncledave writes:
No surprises here. Since Safeway decided to go upscale their prices are consistently much higher than King Soopers and, at least at the Safeway closest to me, they have a poor selection. Having said that, the bargains at Whole Foods are the exception, not the rule.
July 18, 2008
7:59 a.m.
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cooperjtd writes:
wait a minute.... did you say free samples?
July 18, 2008
9:42 a.m.
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LadyBird112 writes:
Hate to say it, but Whole Paycheck is pretty accurate. I'll admit, I will pay a little more for my food in order to get away from MSG and high fructose corn syrup (I'm not a granola, I promise, just don't want to get fat like the rest of America), but I also really like having a little of my paycheck left over after buying food. So I'm all for this.
July 18, 2008
10:19 a.m.
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Monica030 writes:
Who pays $4.19 for eggs, $5.49 for butter, and $3.99 for bread at King Soopers?
July 18, 2008
11:02 a.m.
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temurlan writes:
I don't buy groceries at Whole Foods, just the exception items that I can't get at the regular stores.
The comment about the crappy selection at Safeway was spot on. It's like they arn't even trying.
July 18, 2008
4:33 p.m.
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cogramma writes:
reading some of these comments just goes to prove . . . poison in, poison out. you know who you are
July 18, 2008
8:13 p.m.
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italiaboy9 writes:
I will never buy another single item from Whole Foods since the last time I was there...every damn "organic" marked produce was from Mexico. NO THANKS! Whole Foods and it's board of directors can go to hell for all I care.