Whole Foods has been keeping a keen eye over slashing product costs, offering unbeatable deals to budget-conscious individuals in a new purchasing strategy – an initiative taken after many competitors like Walmart and Target have got their organic foods at more alluring prices on display. The move might prove fruitful to food retailer from grocery business aspect due to swarming competition. More of company’s claims comprise of designingfurther policies for sales revival amid one of those include its point of focus towards prepared food and offering more deals to regular buyers.
However, as what it happens usually, the new chain is expected to be an on-take challenge. Not to mention, the chain dubbed 365 will supply the tastes of younger people on a low budget including Millennials and other health-conscious people.Analysts cite for an unrequired competition hike amid both of supermarket chain’s two brands, as a result of this decision. However, Whole Foods had a larger stake despite of that.
The results estimates revealed that though there has been a 3% increment in sales volume over the last Q, the ratio in stores are older than one year slipped 1.8%. The bearish aspect was due to least number of transactions made alongside less product purchasing – as per retailer itself.The upcoming problem refers to company’s current strategy in becoming aggressive about giving discounts (a three-day sale of discounted products). Moreover, the promotion trend is still on the go; unlikely to alter present scenario.
Although the expansion is going bearish, the rise of the overall sale volume may be tied to the fact that the chain has recently running more stores than in the past.
UPDATE: Since January, the chain has opened 38 new stores, and has plans to add extra 30 by the year’s end. In addition to this, the company announced other ways of cut prices including providing digital coupons to their customers via the smartphone app.
