Why Whole Foods’ price cuts aren’t good news
In the run up to the Thanksgiving holiday, Amazon owned Whole Foods has announced deep price cuts on Thanksgiving staples and other products. Whole Foods has even gone so far as to say that the price cuts are permanent. This announcement has caused concern among other grocery outlets causing a number of their stocks to drop.
However, things may not be as rosy as Whole Foods would have you believe. according to financial experts at Barclay’s, Whole Foods saw a decline in foot traffic after their initial sale to Amazon. Shoppers were curious at first to see how the new Whole Foods was, but now foot traffic into their stores has leveled off which could have triggered the new price cuts.
These deep price cuts may be having a human cost as well. Many stores in the chain are said to have been reducing staff in order to compete. The stereotypical Whole Foods shopper seem to be more socially conscious than other shoppers. If they realize that their discounts are coming at the cost of jobs, that could definitely have an impact on Whole Foods bottom line. Would you want to shop in a store that was laying off employees just in time for the holidays?
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