Having lost over 50% of its market value since the end of 2013, the outlook for Whole Paycheque Foods is somewhere between miserable and suicidal. And then along comes Kelly Bania of BMO Capital Markets who conducted a survey of 1000 Whole Paycheque Food shoppers. And as you will see, Kelly manages to rub overpriced organic salt into the festering gob-hole of Whole Paycheque Foods (or something like that, The Mayor’s analogy abilities are lacking today):
More than 70% of the respondents told Bania that they had not noticed any changes in prices in Whole Foods over the past three months — even though the company has touted its efforts to lower prices to be more competitive with supermarkets.
In other words, the perception of Whole Foods being a place where you spend your Whole Paycheck remains.
And in an even more troubling development, only 24% of customers said organic products at Whole Foods were “definitely” higher quality than organic food at grocery stores.
Fifty-four percent of those surveyed said the quality of the food was “sometimes” better at Whole Foods while the remaining 22% said “not at all.”
That’s bad news for Whole Foods. If Whole Foods’ own customers don’t think the products are worth the price, then how much longer will they remain loyal shoppers?
Whole Paycheque Foods is too expensive, and the people that regularly shop there are the types of people you would like to beat unconscious with a shovel. There is no denying that. There is no denying that there is very little value in anything Whole Paycheque Foods (WPF) sells, and the store is just another status symbol for those that will be the first to be crushed when the upcoming revolution arrives.
$2.20 a lb for organic bananas? Do they come with a monkey attached who will peel them for The Mayor? No? Then The Mayor will stick to the .66 non-organic bananas he can pick up any day of the week at No Frills.
It’s true that a lot of food at WPF is organic, but that doesn’t resonate with the average Joe/Jane when organic food is ridiculously expensive. Sure, everyone would like to eat organic if they could, but then again, everyone would like to have been born with golden nipples that spew champagne when rubbed betwixt their index finger and thumb. The thing is, you can’t always get what you want. You can try sometime, you just might find, you get what you need.
The economy isn’t right for WPF. Other than The Mayor, there aren’t a lot of people willing to pay $11.99 for a 250ml of onion juice. It’s so delicious, and totally refreshing. People are tight right now, debt is out of control, and places like WPF do not cut it. We are in No Frill’s and Food Basic times, not WPF times. That again, is the truth. The Mayor doesn’t expect a hallelujah, but a head nod would be nice once in a while.