Making Sense Of Whole Foods “Millennial” Strategy
Whole Foods has announced a new retail concept aimed at Millennials who want organic and natural foods at lower prices and more conveniently than Whole Foods’ current U.S. stores can offer. “Wouldn’t that be great for everybody?” is probably the question going through your mind.
While natural and organic foods are becoming an increasingly mainstream offering in regular grocery stores, the consumer still has to sift through the offering to find those items. Whole Foods takes the effort out of that search with its curated offering. Saves time and is very convenient.
Taking this to another level with lower prices would seem to be a logical next step for Whole Foods. The secret to success here will be location and store size otherwise Whole Foods is simply going to play in the same space as Trader Joes. Millennials are more inclined to let technology replace the role of staff who regular Whole Foods customers actually appreciate.
While we will hear more details from Whole Foods in the fall, I can see a small footprint store with readymade meals, and an online component for order and pick up being a potential success for the new concept. Some things Whole Foods will have to consider is the pricing of its private labels which would need be uniform across the two banners to avoid consumer backlash. Or do they invest in new private brands? Big questions for Whole Foods to answer.