Journal 24: Why is Whole Foods so Expensive?
As a continuation of answering Tima's questions for me, I will be tackling a common question surrounding ethical consumerism. Why are more “ethical” stores like Whole Foods so expensive? Is it because enough people demand ethical goods despite price?
A huge reason so many people don't shop at Whole Foods is solely because of their prices. In my own experiences there, I have seen bottles of pomegranate juice being sold for $12.99. This is not to say that notoriously cheaper grocery stores don't have similar prices, though: this article from Business Insider shows that 16 oz. of strawberries at both Trader Joe's and Whole Foods were $5.99, and 16 oz. of organic mayonnaise (although, whether or not mayonnaise is ethical or not is a whole other journal) were $3.69. Some foods at Whole Foods were even cheaper than at Trader Joe's: Grapes, Uncured Bacon, Milk, and Yogurt all proved to be less costly at Whole Foods when this experiment was conducted. Although these were most likely just temporary sales, it proves that good ethics don't always have to cost more.
In an article from Mic, Whole Foods founder John Mackey says that his grocery stores tend to be costlier because "If you want to get a good automobile, a higher quality automobile, you're going to pay more money. "Nobody's complaining that the Tesla is expensive ... Clothes are the same way. Housing is the same way. You pay for what you get." What does this mean exactly? Mackey is stating that the products provided at Whole Foods are better in quality and are more often than not organic, hormone-free specialty foods. After all, Whole Foods is essentially a specialty store- basics can be picked up anywhere, but if you want kombucha or turmeric powder or a more obscure produce item, Whole Foods can provide that to you. This is not to say that specialty grocery stores are all expensive, though- according to Business Insider, Whole Foods is approximately 19% more expensive than specialty store Trader Joe's.
When Amazon purchased Whole Foods earlier this year, the public was excited to hear that prices at Whole Foods might drop as much as 43%. Note that the statistic says "as much as", because not every product on their shelves experienced a price drop. Although their prices are slowly becoming only a slight premium compared to competitors like Trader Joe's, Wegman's, and Sprouts, you can still expect to pay more for most products at Whole Foods. Yes, some prices did drop, but only because others were increased. Daily staples like eggs and bread were made less pricey because other specialty items took an increase in price. This is probably fine for the average consumer, but those using Whole Foods as a specialty store might find themselves taking their business elsewhere despite the new lower prices.
Some questions I have now are:
1. What is to come as far as Whole Foods' new prices go? Will they be able to maintain their current business model?
2. How do regular shoppers at Whole Foods budget?
3. If Whole Foods cares more about profit than providing low prices, what does it say about them as a company? Can you be truly ethical if you don't want everyone to reap the benefits of ethical goods?