Whole Foods Budget-Conscious Customers Turn to Private Label

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September 27, 2011

Rising food costs have not deterred shoppers from wanting to buy natural and organic foods, but it has caused them to make different choices, according to a new survey from Harris Interactive conducted for Whole Foods Market.

Whole Foods may boast upper income shoppers devoted to buying natural and organic foods, but even this demographic is turning to private label to stay on budget. And the retailer is showing them how to do just that with more budget-friendly pantry staples such as beans and rice. Whole Food also released a competitive pricing study proving its private label natural and organic items cost less than comparable products at traditional supermarket chains.

Nearly 75 percent of shoppers surveyed said they wouldn't compromise on the quality of the food they buy, according to the latest Annual Food Shopping Trends Tracker Survey.

Seventy percent of shoppers said they would like to buy natural and organic foods within their budget, and 71 percent said they would buy those foods over conventional items if prices were comparable. The survey also found that 32 percent of shoppers rely on inexpensive pantry items such as beans and whole grains when building meals.

It's these pantry items where Whole Foods offers less expensive natural and organic staples with more than 2,000 SKUs under the 365 and 365 Organic Everyday Value store brands.

"We're showing that Whole Foods Market offers a whole lot of savings when comparing the same items elsewhere," said Walter Robb, co-CEO of Whole Foods Market. "At a time when food keeps going up, we're working very closely with our supplier partners and putting our product mix under scrutiny to keep prices at bay."

Store Brand Organics Cost Less
The retailer also released findings from a recent competitive pricing study showing that a basket of popular grocery items costs $5.38 less at Whole Foods Market than at other national supermarket chains. The average total price for the everyday items at Whole Foods Market stores was $36.03 compared to the competitors' average of $41.41.

Whole Foods Market looked at non-sale prices for several popular items including eggs, romaine lettuce, soymilk, yogurt, peanut butter, pasta sauce, frozen fruit, among other everyday pantry items at stores in five markets: Seattle, San Francisco; Fairfax, Va., and Atlanta. It then compared them with the same products at other leading supermarkets in those same cities including Kroger, Safeway, Wegman, Fred Meyer and Publix. In most, but not all cases, Whole Foods private label beat both the national brands and competitive store brands on price for comparable items, according to the report.

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