Is Whole Foods Becoming Costco with a Side Order of Trader Joe's?
Whole Foods is trying a store image makeover, according to the New York Times. In these lean times, with rising food prices and wholesale economic anxiety, the store sometimes known as "Whole Paycheck" is trying to recast itself as a value-driven store.
Serious eaters, I have three questions. Have the prices at Whole Foods come down? Is it now competitive with other grocery stores on staple goods? Should its nickname now be "Half Paycheck"?
The Times piece has a handy chart comparing prices at Whole Foods, Trader Joe's, and Shoprite on a range of common items. I then made it hyper-relevant to me by going to my local value-positioned upscale grocery store, Fairway Market, to check on the prices there. Here's what I found.
- Fairway's blueberries were $2.50 a pint compared to $3.99 at Whole Foods
- Fairway and Whole Foods were charging an identical $1.99 for a pound or organic baby carrots
- Fairway was charging $2.79 for a dozen cage-free eggs compared to $2.69 at Whole Foods
- At Fairway 16 ounces of all-natural Smucker's peanut butter was $3.19 compared to $2.19 for an 18-ounce jar of the same type of peanut butter
- A box of Kashi Go-Lean Cereal was $3.29 at Fairway and $3.39 at Whole Foods
- 12 ounces of storebrand bacon was $4.29 at Fairway versus $4.99 at Whole Foods
- A pound of ground beef at Fairway costs $3.69 versus $4.59 at Whole Foods
What can we conclude from this admittedly small sample of seven staples? Fairway's prices were markedly lower on bacon, ground beef, and blueberries. The prices at both stores for cage-free eggs, Kashi cereal, and organic baby carrots were very similar. Whole Foods was much cheaper only for the peanut butter.
It's clear that Whole Foods has a ways to go before it can honestly call its prices competitive, at least when it comes to staples.
But given the state of the economy and Whole Foods' plummeting stock price, we shouldn't be surprised if its prices on many items come down markedly. Which probably means they were too high in the first place.
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41 Comments:
I'll stick up for Whole Foods brand cereal - most boxes are under $3. I also think most of their in-season fruit is reasonable (99 cents a pound for peaches, $3 for organic berries), but I don't have a fairway near me so I can't compare. Compared to Gristedes, it ain't so bad.
LizNYC at 7:50PM on 08/04/08
agreed -- i find myself buying a couple last-minute items for dinner at whole foods because it's on my drive home, and it never ceases to surprise me when i see the total on my bill. it's just more expensive than other places and it has always been. i don't know how they can possibly change that without making drastic changes.
megannesta at 7:51PM on 08/04/08
But, of course, there are plenty of consumers out there who don't mind overpaying on somethings for the 'experience' of shopping in Whole Foods, where, you know what, you can stand there and sample everything sliceable in the deli section for lunch...As a long time shopper @ Whole Foods (SF) and professional chef, I do know this...outside of Wegman's, they have the largest quantity of restaurant quality food around, and the best and most informed staff bar none.
iwannacook at 8:03PM on 08/04/08
@iwannacook - oh I love wegmans! I wish we had one here :-(. Also there is no comparison between the checkout girl talking on her cellphone at Shaws (at least at our old one) versus the informed friendly *anyone at whole foods*.
Oddly enough goat cheese at our Whole Foods is less than 1/2 the price for the exact same cheese at the Harris Teeter across town. Whole Foods is definitely more for some things, cheaper for some, and a wash for others. Its best to shop around and get the best quality you can for the least money. Quantity will probably always trump quality here but I'd rather pay more for less (quantity but much higher quality) - that is not to say you automatically get better food at whole foods mind you...
@seriouseats - what's with the talking video ads that are constantly playing. I had to turn my sound off altogether...
christopher at 8:16PM on 08/04/08
I feel like with most chain grocery stores prices are directly related to the leverage of the store itself. Everything is brokered in such large quantities that some stores can offer slightly better deals cause there contract with the distributor allows them to.
Food Bazooka at 8:40PM on 08/04/08
I love Whole Foods. I think it's an excellent company. I shop there when I can afford it, and I haven't noticed the prices coming down at all. But I feel that the quality of the food I get there is worth the money when I have it. I honestly think that the only thing you can get a good deal on is their bulk section. I can get spices so cheap there, I actually only ever buy my spices at Whole Foods.
JigsawJones at 9:18PM on 08/04/08
I Grew
kamico at 9:22PM on 08/04/08
Here in Texas, I shop almost exclusively at HEB operated Central Market. I think the problem with WF is that they offer organic EXCLUSIVELY.
Central Market has both organic and high quality "conventional" options. Sometimes the organic prices are just absurd. I'm not someone who NEEDS organic everything, so I'll get the "conventional" items when it makes sense. For example, CM has chicken breast, which is very good, free range, air chilled, etc. etc. for about 6-7$ per pound in the case. (They also have organic chicken prepacked) WF only really offers organic (great stuff, sure) but it was 9-10$ per pound. That's a large difference.
So I much prefer CM because I have the choice. I can get organic strawberries because they tend to hold on to pesticides more than other produce, but I can get HEB cream cheese, because the difference between that and the organic version is negligible.
I dunno if it goes against their m.o, but giving the consumer choice is probably the biggest thing that WF could do. At least, if they wanted more of my business.
lawofmurphy at 9:26PM on 08/04/08
I don't bother going into Whole Foods anymore, always over priced, over crowded, and the damn space-cadet checkers take 4-ever and a day to check out my groceries... I get comparable prices and better service at my other local options.
@lawofmurphy - used to live in Central TX, and HEB's Central Market rocks - bigger stores, more local stuff, and better service - no contest.
GingerSnap at 9:45PM on 08/04/08
The answer to the first question is no, but I don't think that's the message, anyhow. Judging from the in-store signs, they're just saying that shoppers can comfortably stay within their budgets, especially by buying 365-brand products. As to the second question, for some items, it might not even be possible to judge, because there are differences in quality and other factors. In the case of the bacon, other than Whole Foods, I don't know of any grocery chains in the DC area that suppliers meet certain animal husbandry standards. I have noticed that some 365 Organic items are cheaper than their conventional national-brand counterparts. For example, 365 Organic Worcestershire sauce is cheaper than the same size of Lea & Perrins. In general, I've found the 365 brand products to be of excellent quality. The only one I've been disappointed in is the Dijon mustard.
juliec at 9:45PM on 08/04/08
I grew up in Rochester, NY and am a big fan of Wegmans. As far as WF, when I lived in Providence, I did most of my shopping at WF because simply it was the nicest grocery store in my area. The other big chain had super-long lines, surly checkout people and sometimes plain scary shoppers. Now that I have more options in SF I don't need to pay more for quality products.
kamico at 10:16PM on 08/04/08
I think the worst thing about Whole Foods is the fact that their prices are often difficult to find, especially in produce. When I found ramps there earlier this summer, the three employees I asked didn't even know what they were (though baby leeks was probably a close answer), nor did they know the price. And often, conventional price tags are placed near the organic produce, which is very misleading. Caveat emptor and all, but this is bordering on criminal.
Phlipper at 10:16PM on 08/04/08
I have two WF stores very near me for most of my work and school. I go for lunch and usually cringe at what I pay, but I find that I can still cook meals for multiple people at home affordably and with good quality ingredients. It's just that damn salad bar at lunch that kills me, I can spend $9 for lunch on myself or $15 for an awesome dinner at home for 4 people.
TastyNewEngland at 10:21PM on 08/04/08
Well, we could certainly try to oversimplify and then make pronouncements a lot more. Whole Foods isn't trying to reposition itself (at least, not according to the article); they're trying to advertise things about their stores that they already believe are true. Namely, that people who want to shop in a manner they consider frugal can do so to some extent at Whole Foods. Certainly Whole Foods has many products that are more expensive than at other markets. Whole Foods also has many products that aren't available at all at other markets. They have some products that are less expensive than at other stores. Some of their products are identical to other places. Other products are superior in quality and others don't appear to have any difference in quality though they are not identical to offerings elsewhere.
What can we conclude from this? Choose where you're comfortable shopping and if you're concerned about prices, pay attention to the prices.
ccbweb at 10:25PM on 08/04/08
The prices between WF and Fairway are surprisingly competitive when you factor in the relative comfort of shopping at WF vs. the melee that is Fairway.
I used to be partial to CM here in Austin, but much less these days. I appreciate WF's prices on fresh meat and seafood, since I can trust that it's high quality, and priced well as such. Compared to some smaller stores around here, the meat is far superior. I got a beautiful whole Alaskan salmon last week for $7.99/lb, some of the best salmon I've ever had, and they cut into steaks and fillets for me, packaged as I asked. And I got a free cedar plank. The butchers are always happy to cut smaller portions of a roast for me, and they will give me pieces of boneless leg of lamb priced as "stew meat," for example.
When I have bought different items of produce that didn't have a code, the lady at the checkout gave it to me for $.99/lb.
So I truly appreciate the customer service at Whole Foods. But overall, I cannot afford to do all my shopping there. Their big company organic produce is usually pricier than the smaller stores or the coop. I liked that they carried local tomatoes, which were truly delicious, but it puzzles me that they don't have them now. Plus, I have recently been ruined by the discovery of local farmers market produce, so I don't bother buying lettuce, tomatoes, and some other items at the supermarket, organic or not.
renzata at 10:52PM on 08/04/08
whole foods is actually pretty cheap when it comes to stuff like seafood and meat. some non perishable stuff you can probably find cheaper if you bargain shop. but all in all, people have gotten used to food costing a LOT less than it should so get used to the whole foods prices. america's "dirty little secret" is the amount of our income we spend on food.
buy what you can local and head over to whole foods for olive oil and flour.
midgepingleton at 11:47PM on 08/04/08
I was a Wild Oats shopper - their bulk section is where I buy many of my specialty baking supplies. I was so disheartened when WF bought them. I'm very fortunate that they have kept the WO style of bulk foods - "prepackaged" bulk foods is not buying in bulk, which is the style at the Sawmill Road/161 Whole Foods in Columbus. Very few items (comparatively speaking) in true "bulk" form. May as well be the Amish pseudo-bulk stores closer to home.
I'm very disappointed in the elimination of bulk spices at the former Wild Oats location. It was nice to be able to buy 2 or 3 nutmeg, or 1/2 oz of star anise...no more.
As for general shopping, WF doesn't do it for us. We appreciate buying local at the farmers markets, but are not "true" organic shoppers. I would rather buy my meats from locally owned butcher shops that focus on Ohio-raised beef, pork and poultry, such as Carfagna's. Or, stock up on "fair beef or pork" at the places in Mount Vernon.
thewrighttaste at 12:09AM on 08/05/08
I don't like Whole Foods. I blame them for the creating the perception that organic, fair trade, and/or local food has to be expensive. That it's a fashion statement. That it's a trend for snobby holier than thou elites. They do good things, for sure. They offer excellent benefits to their workers for one thing. But I think they have pushed things too far in the wrong direction. And as they have expanded and become a national chain, they have had to abandon many of the principles that they built their brand around, and yet continue to promote as such. There used to be a similar chain of grocery stores in New England called Bread and Circus, back in the day. All organic, local fair trade, "artisanal" etc. We used to call them Bread and Jerk Us. Whole Foods bought them out and I feel like that is exactly what they've been doing for the last 10 years, jerking us. It's time they get with the program. Being part of the solutions, not perpetuating the problems. Much easier said than done of course. I do wish them well. I just hope they can see that their answers lie in the micro, not macro.
simon at 12:17AM on 08/05/08
I am also not a great Whole Foods fan. I cannot do a whole shop there.
I would rather go to Wegman's or Shop Rite. I will always go to Trader Joe's and Costco. When I am in the south we go to Lowe's Foods and Trader Joes and Costco.
JerzeeTomato at 1:08AM on 08/05/08
I always do a combination of multiple grocery stores including Trader Joe's, Whole Foods and Shop Rite. I've always been a price sensitive shopper & going to Whole Foods for me is a special event like a reward after getting A's on your report card! You go there when you can afford it otherwise you go to Shop Rite or the local Indian grocery store for your staples. Its important from an economic standpoint to be flexible and aware of the prices in the food stores in your area.
arathi at 4:49AM on 08/05/08
no TJ's here (central PA) but thank goodness we got a Wegman's about 1 year ago. They have been CONSISTENTLY less than surrounding stores and their selection is phenomenal. There's a perception here that Wegman's is +++$$$ b/c they have higher end stuff available (specialty cheeses that are $25/lb) but they have awesome customer service and everyone knows what they are talking about. Yay Wegman's!
PS-when we are traveling near a TJ's-we'll stop and I'll stock up on pantry items.
foodiemama at 6:59AM on 08/05/08
I visited my first Trader Joe's in (of all places) Manhattan. I was stunned to see organics and other "crap free" products offered at extremely economical prices.
When I talk to people about making better choices in food, I hear the same thing over and over, "It's too expensive." Trader Joe's blows that logic right out the window.
I'm trying to rally my friends into a letter-writing campaign to get a TJ in the Tampa area. Whole Foods and Fresh Market are both great but if I can get comparable or better food at a fraction of the price, that's where my dollar is going to go.
therealchiffonade at 7:24AM on 08/05/08
Here in Austin, Whole Foods is for the elitist new-fangled Yuppie Hippie class... the ones that know better than everyone else and they're not afraid to tell you... They're willing to deal with the ridiculous pricing because, well, they can afford it. They're willing to deal with the two seriously overcrowded stores in town, and the line just to get in the place... because...well, I don't know why. That's a mystery to me...
I hate Whole Foods... Give me Central Market or HEB Plus any day.
ronzoni at 7:32AM on 08/05/08
I'm launching an experiment on my own blog (cookingbroke.com) taking a hard look at prices at Whole Foods, Trader Joe's, and Farmer's Markets. I noticed after reading the NYTimes article that they had A LOT of signage marking what "great deals" they have. Their own brand of inner grocery items - oatmeal, chicken stock, milk, etc. are cheaper - even in some cases compared to Trader Joe's. However, if you're doing all your shopping at Whole Foods - you could still call it "Three Quarters Paycheck". So far, local produce - still the best and the cheapest.
cookingbroke at 9:32AM on 08/05/08
Wegmans is the pinnacle of supermarkets.
bobbob at 9:40AM on 08/05/08
The first (and last) time I've been to a Whole Foods was during a visit to my sister's a few years ago near Chicago. We had heard the hype surrounding WF and were also curious, but sticker shock got the better of us and we walked out with just a few prepared food items. When we got home to sample our findings, our food was quite a letdown (maybe we're picky?). I don't think my sister has been back there since. Thankfully, we had Trader Joe's out there to save us the next day.
For now, we have a Wegman's and a Giant Foods (of MD) five minutes away from our home but we've surprisingly found that Wegman's is within our conservative budget for a grad student and a recent grad. What I miss most is Giant of PA and their 2 for $4 deals on Turkey Hill iced tea!
tina_eats at 10:25AM on 08/05/08
I went to the Walmart for the first time in awhile, expecting to get some great food deals. A bag of onions and potatoes at Walmart were much cheaper than at Whole Foods, but they were also conventional. Several things, including lemons, limes, avocados, and some seasonal produce were the same price or more. I also love the bulk bins at WF for beans, nuts, and grains. The eggs and milk were a little bit more at Whole Foods, but I'm willing to pay it because going to WF is just a better shopping experience in general. We also don't have a great grocery store selection here in New Orleans, so you can get stuff there that you can't buy anywhere else. Also, our WF is beautiful- it was converted from an old streetcar storage barn, and its not too big that is overwhelming like some I've seen in the suburbs. I'm not surprised that WF is having problems though- the staff used to be amazing, but I've started to notice that things were going downhill. They just haven't seemed as on top of their game- products are mismarked or not in stock. Anyways, I like Whole Foods overall, and I think its not too bad if you stick to "whole foods" and in season produce.
gillsnthrills at 11:10AM on 08/05/08
I just have to chime in here. I live in Texas in a city with both Central Market and Whole Foods. Whole foods does offer both conventional and organic items. I always buy my meat and seafood from Whole Foods because the quality, even when not organic, is so far superior to that at Central Market it's not even funny. And honestly? It's cheaper. But then, I'm not buying dry-aged ribeyes (which I'm pretty sure they don't even have at CM) all the time, I'm buying things like flat-iron stead and chicken thighs. The price of boneless skinless chicken thighs (natural, not organic) at my WF is $3.99/pound. I'm not sure what they are at CM though.
I shop both at CM and WF because CM is closer to my house. Sure, they carry HEB products, but at WF, I know that they quality of the 365 stuff is better than that of HEB/CM and is completely comparable in price.
Bottom line is, I'm going to look for ways to get the best quality for my money and I can do that at WF if I pay attention and shop smart.
FoodPorncess at 11:29AM on 08/05/08
I *love* Whole Foods. I live very near the Union Square edition in Manhattan. I'm friends with two of the butchers and one of the fish mongers, and yes, their meats and fish (and cheeses and produce) *can* be more expensive than other stores, but you really get what you pay for.
That said, Whole Foods has the LEAST expensive house-brand ("365") dried pasta, organic green tea, organic canned tomatoes, crackers of every stripe, dried herbs and spices, soy milk, frozen vegetables, olive oil, peanut butter, canned beans--and more--than ANY supermarket in my area. And it's a pleasure to shop there. They have the best-managed checkout system in town, the store is clean, attractively lit, and staffed with friendly, knowledgeable people.
Gourmet Guy at 11:33AM on 08/05/08
My local grocery store is Wegmans (I know that several of you from above will be jealous), but I have to tell you that having only one option can get boring. We have only one other supermarket chain in the region-Tops-and for price and atmosphere, they don't come close to Wegmans. That said, Wegmans does have its faults. They are very customer service oriented but only when it is to their advantage. Their chicken is not very good and I don't buy meats or chicken there as the local butcher down the street is much better and I like to give him the business. They also have many sections where it is at least 3/4 of their own brands and I don't always like the quality of their brands.
As for WF, I love it when I visit it because it is different. Given some of their prices, I am not sure I would want to shop there all the time. I probably would still go to the local butcher and farm markets. Even before it became trendy, I used to go to farm markets. Much fresher and I like giving local people the business. When I do go to WF, I do a bit of comparison shopping as I always feel that Wegmans is very expensive in some areas like fish, produce and cheese, but I am usually proven wrong as Wegmans and WF wind up with basically the same prices on these items.
Do wish we could have a Trader Joe's here but Wegmans will never let them in the area which is just silly because I would still have to go to Wegmans for quite a bit of my shopping list. I find TJs good for Belgian chocolate, pasta, toppings like bruschetta, but that said, you can't get everything you need there. So, I am forced to visit WF and TJs when I am out of town and can only buy things that don't need a freezer. I do buy some refridgerator items occasionally and put them in a cooler bag.
For those of you who have either WF or TJs near you, consider yourselves lucky to have a choice. I guess the ultimate combo would be to have Wegmans, WF, and TJs near by!!!
suschef at 12:00PM on 08/05/08
I go to WF maybe once every couple months just to browse the aisles.
WF is NOT for the budget shopper who cooks from cans and buys everything based on price. It's for people who enjoy the experience of shopping. There's aesthetic appeal to their stores versus going to Costco. Also, when I've gone, the employees have been respectful.
While most things may be more expensive, for a number of things it's like comparing apples to oranges. You can't compare Russell Stovers to Charles Chocolates. I buy gifts for people there when I see funky stuff.
There are some deals (at least one :) to be had. I love baby spinach and eat it every day. The spinach at WF is the cheapest in Cleveland, including the farmers markets. I didn't notice it was organic until I threw out the container.
Cassaendra at 12:13PM on 08/05/08
For the "speciality" meats, fruits and vegetable, have we forgotten CSAs and farmers markets? You won't find fresher, the quality is often better and the price is competitive. I sell grass fed angus beef direct from my small family ranch at about $8 a pound. I could charge more to join in the "organic" hype, but I feel it is more important to charge a fair price for a quality product. Your local farmers markets also believe in this concept.
Visit me at ShepherdsRanchAngusBeef if you would like to learn more, or go to your state department of agriculture site to find a local farmers market near you.
DavidGNC at 1:56PM on 08/05/08
I like Whole Foods, but they haven't opened their long-rumored Park Slope branch, yet, so I have to drag stuff home from Manhattan. I prefer Fairway (in Red Hook, the Manhattan stores ARE zoos), because it's never overly crowded, even if the parking lot is, and the lines are never more than 2 deep at checkout.
By the way, if you are going to compare Smucker's peanut butter to another brand at Whole Foods, you probably would have been better off comparing the pricing of the fresh/grind your own at the two stores. I believe they were both about $2.99/pound last I checked.
alden at 2:13PM on 08/05/08
"12 ounces of storebrand bacon was $4.29 at Fairway versus $4.99 at Fairway"?
typo?
redzerostar at 8:17PM on 08/05/08
@redzerostar: Thanks for the heads up! The entry has been corrected. In the future, the best way to let Serious Eats' editors know about copy errors is to email contact@seriouseats.com.Thanks!
Raphael at 12:24AM on 08/06/08
whole foods is as expensive as you want to make it. that's what they're saying with the value tour/image thing. there IS a way to eat good, real, minimally-processed food without spending over your budget. comparing items is great, but you've got to compare the same items. comparing fairway meat to wf's is like comparing apples to oranges; it's just NOT the same.
Localhoney411 at 1:52PM on 08/06/08
Whole Foods store-brand canned soda is dirt cheap, esp. when you consider they use pure cane sugar and not HFCS. Also, the Union Square branch sells milk and butter cheaper than the nearby Food Emporium.
growler at 5:15PM on 08/06/08
i've always noticed the competitive pricing since i've been shopping at my local Whole Foods
sure, a lot of the produce is more expensive, mostly because a majority of it is organic, and that's just the nature of the industry.. same goes for the meat, the meat at WF is held to a stricter, higher standard.. all-natural, all vegetarian diet, humane living conditions, no hormones/antibiotics, etc.. so even the non-organic meat is going to be more expensive, and i for one am more than willing to pay a premium to get food that i can trust in and know is safe and of high quality
but as for the grocery items, there are a ton of deals, especially on the private label 365 Everyday value line.. not only are those products also held to certain strict standards, but they're usually even cheaper than big name conventional brands, which often are comprised of lower quality ingredients
it's easy to go into a WF and see the expensive and exotic items, they simply offer more than conventional stores, but if you look beyond that and just go in with the same mindset you would have going into a conventional store - which is just to get what you need, nothing extravagent - then it's more than possible to get the same or even greater value
WF is just the perfect store for me.. their standards, not to mention the top notch customer service, is more than enough to keep me a happily devoted customer
Control at 11:24PM on 08/06/08
I agree with control. I certainly shop on a budget, and I do a little over half of my shopping at Whole Foods. The layout of Whole Foods is also a plus. When I go to Fairway I feel so rushed and crowded, and at Whole Foods I can just chill and take my time.
pbisNOTmyname at 6:32PM on 08/07/08
Control really put it well; its a good store for me. The things I value and am willing to spend money on are prevalent at Whole Foods. I can find yogurt I like that meets my requirements, good quality seafood at reasonable prices (at least at my location in Virginia) a selection of organic produce, some bulk items, and a handful of unique pantry items, too. I also like their prepped sushi as a snack/light lunch sometimes. I wouldn't confuse it with going to a good sushi bar, but its a nice change of pace from the regular lunch options out in the world.
ccbweb at 10:50PM on 08/09/08
As a former long time Wegmans shopper and employee who is now out in Portland (WF, TJ's, Safeway, Fred Meyers, local stores) I still weep whenever I shop in WF & TJ's. WF has lukewarm, hipper than thou service (the plague of Portland) but solid produce and meats. Anything in a cardboard box is bound to cost more and I'm often disappointed by their in house brands. TJ's is very overrated in many areas - does anyone actually read the ingredients on their products? Agreed they have great prices on chocolate and pasta and such, but their produce is usually way over-packaged. Why do I need a clamshell for 4 pears? I also commend Wegmans for having had a very strong 'buy local produce' for many years. It used to be a common practice to have department managers pick produce on a local farm at least once a year.
baconandbeer at 4:33PM on 08/10/08