The New York Times reports that Business Day did a survey comparing groceries from several different national grocery stores and found that Whole Foods is, in fact, competitively priced with others like Trader Joes and Food Emporium. For example, an 8-ounced package of Philadelphia cream cheese was $1.99 at Whole Foods, $2.10 at Walgreen's and $2.99 at Food Emporium. A 15-ounce box of Kashi Crunch cereal was $2.49 at Whole Foods, $2.69 at Trader Joe's and $3.49 at Food Emporium.
The ads will be running in the City Section of the New York Times through July, which is not distributed anywhere outside of New York City. But depending on the feedback, the ads may eventually run elsewhere. Although we understand that Whole Foods wants to set the record straight, we still think that they show a disconnect with the brand. And certainly the price issue doesn't seem to have hurt them thus far. So why do people think that Whole Foods is more expensive? Andrew Wolf, a grocery industry analyst, said "If your store looks cleaner and your products are better, you can create a price image that is higher than reality. You are being punished for the good." Photos and story via ::New York Times