"Whole Foods' new chain, 365 by Whole Foods Market, is only about 4% more expensive than Trader Joe's — and that's not including 365's loyalty program discounts — according to a recent price check by Wedbush Securities."
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Although this demonstrates that prices are still too high, it's more than just prices. It's about atmosphere, check out speed, having the products people really want IN STOCK, flavor, freshness and quality of products offered. Yes, I said QUALITY. TJ's, Wegman's Publix etc offer excellent quality products (many unique to their brands) with well-stocked, well-maintained stores in a friendly atmosphere at a reasonable price. And they do it consistently. The focus is on consistent execution across the chain not the latest stupid gimmick. But even where the products match identically, 4% is a difference people notice. It's the difference between $19.98 and $20.78. See how that works? But really, this is also about efficiency and the long-term price structure. If TJ's does triple the volume per square foot, and 365 has to give away the store with costly promotions and spend millions more on labor to overcome the total stupidity of its global and regional dumbasses and inefficient structure, then it's a losing battle. So they beat us by 4% today but TJs and other smart competitors can lower their prices in a millisecond. We can't.
"ONLY 4% more expensive than Trader Joe's".....This is nothing to boast about! This is the problem for Whole Paycheck and apparently STILL a problem with the 365 stores. This is the reason people will go to good ol' Trader Joe's as well as other competitors where they can buy the same quality (or better) products and get better customer service for less money. Pitiful, just pitiful for WFM/365, but continuing good news for their competitors.