LAS VEGAS — Whole Foods Market is doubling down on its value proposition by “offering more deals and sales than ever before” to be a destination where consumers can reliably shop on a budget, Sonya Gafsi Oblisk, the grocer’s chief merchandising and marketing officer, said Sunday.
Heightened budget consciousness by consumers is “the largest and most impactful trend we’ve seen over the last couple of years,” Oblisk said during a session at Groceryshop.
“Everyone is more value-oriented and mindful of how they’re spending their money,” Oblisk said.
Over the last year, Whole Foods has lowered prices on more than a quarter of the items it sells, including over 1,000 private label goods, she said, noting that the grocer directs a “large portion” of its marketing budget to its weekly promotional calendar.
Whole Foods is also “very focused on getting [our] most relevant, most seasonal items to be our hero deals on any given week” and on ramping up its private label development, especially the 365 brand, which has grown over 50% in the last five years, Oblisk said. Whole Foods leverages the brand to do the “heavy lifting” of staying competitive with conventional grocers on opening price points, she added.
The efforts are paying off for the Amazon-owned grocery chain as it aims to appeal to consumers with both absolute value and relative value, Oblisk said, noting that the year-over-year growth rate for weekly sales products is twice that of non-sale items.
When it comes to changing its “Whole Paycheck” reputation, the grocer is taking a “show me, don’t tell me” approach, Oblisk said. Over the last year, the retailer has aimed to greet shoppers with a “sea of yellow” using the sales tags that have become commonplace in Whole Foods stores, Oblisk said.
Even with a heightened focus on value, Whole Foods continues to uphold its quality standards — what Oblisk calls “the nucleus of our brand” — and tap into a consumer mindset under which people want to treat themselves with “little luxuries,” she said.
Whole Foods works with local and emerging brands “to infuse innovation and differentiation” into stores, Oblisk said.
As part of offering an elevated shopping experience, Whole Foods has invested in its apprenticeship program, which provides professional development and training in areas such as butchery, cheese and bakery, to upskill its workers “so that they can create a fun, welcoming and informative shopping experience for all of our customers,” Oblisk said.
