Store Brands and Value Drive Whole Foods Recovery

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

May 18, 2010

After a long stretch of declining sales, Whole Foods has turned business around, more than doubling its recent quarterly profits, by focusing on stores brands and value pricing and promotions.

"It is a turnaround," Keith Jelinek, director in Alix Partners' global retail practice told MarketWatch. "During the recession they realized they needed to change the game, and they did."

Whole Foods’ new-found success was driven by its store brands, namely its   365 Everyday Value brand, and communicating savings to its customers, according to industry observers. Although consumers still worry about their finances, they're "emotionally ready to splurge a little bit,” he said in the report.

Jelinek research reveals that consumer have some “frugal fatigue” and are ready to treat themselves to some premium groceries.

Read These Related Articles:

• Topco Attempts to Buy the Wild Oats Brand
• Wal-Mart Changes the Store Brands Game
• Bay Area Store Brands Beat Out CPG
• Whole Foods Market Partners with Non-GMO Project to Label Its Private Label Food Products
• Safeway Institutes Flat Fee for Packaging Artwork and Redesigns

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases