Bloomberg has a story the premise of which seems to be self-evident - that Sprouts Farmers Markets is undercutting Whole Foods on price - by about 13 percent - an approach that could focus some strategic adjustments by Whole Foods in affected markets.
The story says that Sprouts' price advantage generally is in the area of promotional discounts, and that when those are factored out, the price differential is much lower, about two percent.
According to the story, "As natural and organic foods go mainstream, Whole Foods has already been lowering its prices to appeal to more value-conscious shoppers. The Austin, Texas-based grocery chain is especially focused on reducing the costs of fruits and vegetables. Still, concerns about mounting competition from both organic-food sellers and traditional supermarkets have taken a toll on the company’s stock."
The story says that Sprouts' price advantage generally is in the area of promotional discounts, and that when those are factored out, the price differential is much lower, about two percent.
According to the story, "As natural and organic foods go mainstream, Whole Foods has already been lowering its prices to appeal to more value-conscious shoppers. The Austin, Texas-based grocery chain is especially focused on reducing the costs of fruits and vegetables. Still, concerns about mounting competition from both organic-food sellers and traditional supermarkets have taken a toll on the company’s stock."
- KC's View:
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No question in my mind that competition from Sprouts, not to mention Walmart and Target in the organic segment, means that there's going to be greater pressure than ever on Whole Foods. Now we're gonna find out how good the folks at Whole Foods really are...
