AUSTIN, TX - As reports swirl of changes to come to the Whole Foods strategy, investors appear to be pushing for the retailer to cut prices and boost profits.
Many of the changes, Wall Street Journal reports, are being pushed by former Target exec Don Clark, who joined Whole Foods in November of 2015 to run its grocery operations.
While the Journal notes that Clark looks to bring data analytics, centralized purchasing, and strict shelf management to help shave costs and, in effect, bring profit up, it’s a move analysts reportedly are skeptical of as Whole Foods would be limiting hard-to-find items it currently provides in an effort to match prices on a wider array of items.
A Kantar Retail survey noted that nearly a fourth of consumers shopping at Whole Foods over the last month were seeking products not available in other chains, the Wall Street Journal reports, adding that it would be less likely to make this offer if it doesn’t update the product it stocks following this strategy.
Co-Founder and Chief Executive John Mackey told the Wall Street Journal that this new strategy brings balance between the ‘remaining autonomy of regional executives’ and making for an easier process for national brands to pitch products. He said that this streamline will bring lower prices, but that it’s still a specialty store.
“Our culture is still very unique,” Mackey said. “What Whole Foods needs to do is to take the best ideas of the traditional supermarket industry and integrate them into our company.[...] We think there are tremendous savings we can have that we can pass on to our customers with lower prices.”
This is the latest in a string of possible directions as Whole Foods’ future continues to change shape. As we reported recently, shares boosted when activist investor Jana Partners LLC grabbed up a nearly 9 percent stake in the company, piquing interest on whether the chain was further exploring sale options. Whole Foods’ stock spiked yet again when it was revealed that Amazon had explored interest in buying the name last year, but did not go far in pursuing a deal.
This all comes after a series of moves to streamline locations, operations, and even a change in its leadership structure from two CEOs to one.
AndNowUKnow will continue to report as we wait to see the developments of this latest strategy, and what is to come from Whole Foods, and other retailers in the market.
