Whole Foods has a growing presence in the United States and internationally because of a commitment to quality and satisfaction. Not only does this organization seek to supply customers with the products they want, Whole Foods wants to satisfy all of their stakeholders as well. Because of this, they have a commitment to sell the best natural and organic products that are available anywhere today.
In 2013, Whole Foods posted $12.9 billion in net sales. This was over $4 billion more than in 2009.
Whole Foods Customer Facts
Since 1999, with the exception of the Great Recession year of 2008, Whole Foods has posted identical store sales growth rates of at least 4% annually. Most years have seen growth rates of at least 7% over the previous year, while 2004 saw 15% growth. Part of the reason why their business model is so successful is because they know what their customer demographics happen to be.
- The 18-30 year old age demographic is the one that is most likely to shop at Whole Foods regularly for their food needs.
- According to recent studies, up to 40% of households with children state that they are buying more organic foods today than they did last year.
- In order to introduce all demographics to the cost savings and better quality of food that Whole Foods provides, programs such as Fridays For Five offered people food samples for just $5.
With an emphasis on GMO inclusion in foods, preservatives that increase shelf life, and let’s not forget the chemicals, it is no wonder that the sales for Whole Foods continue to increase. They’re the 8th largest food chain in the United States for a reason! They’re also growing in comparison to other grocery chains that are struggling to fight with big competitors like Walmart, especially in US markets. A recent Groupon that offered a $20 voucher for $10 sold out in just 10 hours, providing about 30 sales per second. People want quality and they’re not afraid to spend a fair price for it. The only real problem that Whole Foods seems to face for the future is whether they can cater to the lower income demographics effectively.
Does Whole Foods Just Cater to Rich People?
- The Whole Foods internal brand of products made up 12% of their total sales in the last year and is one of the most affordable organic brands on the market today.
- The primary employment demographic that this store targets with their marketing efforts are employees of non-profit or tax exempt organizations.
- Each store offers a 5% day where a portion of the total amount of revenue that comes in from that day is donated to a local charity.
- Whole Foods does not focus on income demographics when considering a franchise location and instead focuses on the per capita population that has college degrees.
- The key customer for the average Whole Foods location is a working parent that is between the age of 30 and 50.
- People who are health or fitness conscious are more likely to shop at a Whole Foods for their regular grocery needs.
- The primary concern that a shopper has and what causes them to choose Whole Foods is a desire to have healthy food for their family while still being able to support sustainability issues and protect their environment.
Whole Foods is definitely removing the reputation of marketing just to foodies and people who have tons of cash. Sure – you can still pick up some cheese at a store for $34.99 per pound if you really want it, but the emphasis has been on creating lower cost options that don’t compromise on the quality of the final product. One of the ways they’ve been able to do this is to actually increase the value ratio that people have with this brand. By promoting the health benefits of fresh foods and what they contain, people shop there more often because they have more knowledge about what is going into their nutritional choices.
What Do Customers of Whole Foods Want?
- The average customer of Whole Foods is looking for a one stop shop that will help them meet the demands of their busy lifestyle easily.
- There is an expectation for a well-rounded shopping experience that includes a premium level of service.
- People who live in urban, city environments are more likely to shop at a Whole Foods than people who live in the country or in small communities.
- As the organic market continues to grow, it has become more difficult to specifically target demographics because each demographic has members who want what Whole Foods can provide.
- In the future, Whole Foods looks to increase market segments within the singles communities and the LGBT demographic as they are the least targeted out of all shoppers who visit the store.
- Because customers don’t see food products in black or white views any more, Whole Foods has transitioned to a market where local, sustainable products are emphasized with greater quality so that communities are consistently helped.
- With every demographic, Whole Foods establishes trust simply because of a commitment to honesty, good ethics, and local production.
In many ways, Whole Foods is today what Walmart was 20-30 years ago. It is the store that people want to shop at when they can afford to do so. They’re willing to pay extra to shop there because they know that they’ll receive a high level of quality and service with every item. Will Whole Foods transition into different production markets like Walmart did and begin getting inventory primary from overseas instead of domestically to make more money? If they do, there is a good chance that they might have to redefine who shops at their store.