Career Testing
Career Testing
Career Testing
WORK-LIFE BALANCE / MAY. 15, 2015
version 5, draft 5

Whole Foods to Open New Low-Cost Stores for Millennials

iStock

We’ve previously thought that millennials were more concerned about fresh, wholesome and organic food than the price-tag, but Whole Foods is learning that this largest living generation is just as price conscious as other demographics. 

See Also6 Bad Habits College Students Should Give Up This Summer To Save Money 

The multi-billion-dollar corporation is looking to show the marketplace that it isn’t just a store with high-quality foods with high prices. It’s accomplishing this by launching new low-cost stores that are marketed towards millennials, an age group the company initially thought was indifferent to price. 

According to co-founder and co-CEO John Mackey, the stores will cater to younger shoppers that still want natural, organic foods, but with a different shopping experience, which means lower prices. Overall, the sister stores will be inexpensive to run, maintain lower prices and push ahead with a "hip, cool and tech-oriented" image. 

Perhaps Whole Foods will shed the image of "Whole Paycheck," a moniker made by the general public alluding to how expensive the store can be. 

"This marketplace continues to grow and explode, and I think we think by creating a second growth vehicle for our company, we can broaden the accessibility to fresh, healthy foods," co-CEO Walter Robb said on a call with news media (via USA Today). Mackey, meanwhile, noted that Whole Foods is "light years" ahead of the competition so it’ll take its competitors a while to catch up. 

Many of the details remain unclear, such as how it will offer lower prices, what the name of the stores will be, where the stores will be located and when they will be opened. These unknown variables should be released in the coming months 

Although the company has been successful because of fresh produce, bright displays and clean stores, it has been losing considerable traction due to greater competition at other grocery stores and budget-friendly millennial consumers. Indeed, Whole Foods is beginning to learn that much of what we thought we knew about millennials is actually false. 

Millennials Care About Price, Too 

We, and other news outlets, have reported, analyzed and dissected the research data that suggest millennials are apathetic about prices and just want something that is healthy, fresh and organic. However, since millennials are getting older and becoming independent - no longer are they using their parents’ credit cards - they are seeking out cost-friendly food items. 

Millennials were one of the hardest hit groups of the economic collapse. The 18-to-34 group graduated college, and continue to exit post-secondary institutions, with a bleak labor market. The recession caused massive amounts of layoffs, while restricting millennials from entering the workforce. Today, when jobs are created, millennials are oftentimes attaining low-paying jobs that don’t require a college degree. 

This means that millennials have to keep an eye on the pennies, and this is shown in their food-purchasing behaviors. In other words, they don’t have a lot of money to spend on expensive grocery items. 

Another part of the equation is that millennials have an abundance of options. Whole Foods isn’t the only game in town that offers natural and organic foods and beverages. From stores like Wal-Mart to pharmacies like Rite Aid, millennial consumers are discovering organic trends everywhere. 

Business experts posit that the latest strategy from Whole Foods is an attempt to capture the single millennials. These people aren’t getting married or having children anytime soon, which means they have modest budgets and could transform into long-term customers. 

"My guess is that they’re trying to get them now, when they are single and don’t have a family, and then graduate them into mainstream Whole Foods stores later," Darren Seifer, food and beverage analyst at market research firm NPD group, told the Washington Post. "Which will be interesting, because we haven’t really seen it in the food and beverage retail industry."

This may be the future of Whole Foods: a store with 400 locations in the United States, Canada and Great Britain and $3.65 in annual stores, but unable to grow any further, unless this initiative is immensely successful. 

 

Get our FREE eBook!
'6 Steps to Landing Your Next Job'
Career Test
Career Test
Career Test

LEAVE A REPLY

0 comments

 

RELATED ARTICLES

investments
WORK-LIFE BALANCE / DEC 08, 2014

The year is coming to an end, a time when we reflect back over the past 365 days, especially our personal financial situation. Did we save enough money or did we spend...

New Survey Takes an Inside Look at U.S. Millennials' Banking Habits
WORK-LIFE BALANCE / FEB 11, 2015

As history has shown, new generations are open to embracing new forms of technology while older generations are a lot more reluctant. Today’s generation of millennials...

Are Low Interest Rates a Good Idea?
WORK-LIFE BALANCE / MAR 12, 2014

The United Kingdom has artificially kept its interest rates extremely low for the past five years at 0.5%. The reasoning is that low interest rates will help people cope...

Cooking Professional
WORK-LIFE BALANCE / FEB 24, 2015

So, food, huh? Statistically, 100% of the population that works also eats. The problem is that fast food, although as rapid as the name indicates, is supremely unhealthy...

Paris Hilton
WORK-LIFE BALANCE / JUN 14, 2015

Earlier this year, Thomas Gilbert Jr, a Princeton graduate, shot his father in the head at his Manhattan apartment. While murders are an unfortunately common thing to...

The Costs of a Revolving Door in Your Boardroom
WORK-LIFE BALANCE / SEP 02, 2014

Earlier this summer the newspapers were full of praise and adulation for the new Manchester United manager Louis van Gaal.  Fresh from his successful World Cup campaign...

Get our FREE eBook!
'6 Steps to Landing Your Next Job'
G up arrow