Market News

Whole Foods Considers Tweaking Prices

With sales falling short of analysts\' forecasts, Whole Foods Market is considering lowering its prices on certain items to be more competitive with other food retailers. The Austin, Tex.-based company--which operates 180 outlets in the United States, Canada and the United Kingdom--known for charging higher prices than other food stores, said it is rethinking its pricing of products that can be found in other stores such as branded organic and natural foods. The retailer reported sales of US$1.34 billion for its third quarter, up from US$1.13 billion a year ago. Although Whole Foods posted an 18% rise in sales, analysts are worried that consumers being pinched at the gas pumps will cut back spending on higher-end foods. Whole Foods has set a goal of US$12 billion in annual sales by 2010. Source: Canadian Grocer E-Newsletter, August 5, 2006.