In the battle of grocery chains, it appears that it is the newest generation of shoppers that is declaring the victor. Drawn by the promise of healthy and organic options, as well as its socially responsible brand image, Millennials are flocking to Whole Foods. In turn, Whole Foods continues to enjoy increases in its market share and revenues.
The trend might seem a little curious though. Young Millennials earn relatively less than older age cohorts, and Whole Foods is known for its relatively high price points. But in this case, it appears that the overall value of Whole Foods’ offerings are what bring young shoppers through its doors. In addition to organic and locally sourced foods, the self-proclaimed “America’s healthiest grocery store” promises high quality options, as well as convenient and delicious meal options.
The quality component also stretches to Whole Foods’ corporate philosophy, which tends to be socially responsible and straightforward. Thus young consumers who are skeptical of traditional marketing communication from food producers find credible information posted at Whole Foods.
Furthermore, Whole Foods made a concerted effort in the early days of the modern economic recession to lower prices on some popular items. In this sense, it appeared sensitive to the concerns of young shoppers. By reinforcing its responsible image and making certain items more affordable, the grocer likely increased its share among the Millennials even further.
Of course, a national chain cannot survive off the purchases of a single generation. Whole Foods also appeals effectively to aging Baby Boomers, who are seeking ways to “stay young and healthy and vital and extend their longevity,” according to John Mackey, the CEO of Whole Foods. Although it appears to be lagging among Generation X consumers, both the Boomers and the Millennial generations are larger than the cohort that separates them.
Discussion Questions
- Do you shop at Whole Foods? Why or why not?
- What is Whole Foods’ value proposition?
Source: Tom Ryan, “Whole Foods Hits It Off with Millennials,” Retail Wire, July 30, 2012
Grewal Levy Marketing News 
I do not shop at Whole Foods mainly because I never grew up with them. I grew up with Wegmans which seems to have all of what Whole Foods offers and more. Even if I lived near a Whole Foods I wouldn’t shop there because the price is too much for what they offer. I can find the same produce at about the same quality at the public markets or even at other grocery stores, even if it might be a bit of a hunt to find the right quality foods. Whole Foods’ value proposition is to provide healthy foods that are locally grown and organic. This definitely attracts the younger generations because health is a growing concern. Their value may attract most people, but there are ways to go about this high price and find produce for the same quality elsewhere.
Thinking about it, Whole Foods really has significantly grown in popularity in the past couple of years. Whole Foods is known for its high quality of food, its selection of healthy food, and its high prices. I do not regularly shop at Whole Foods because I live on a college student’s budget but when I am looking for something of high quality, such as when I am shopping for meat, I will choose to spend more money and shop at Whole Foods. The reason why they charge high prices is because they come off to their customers that they have selective, only the best quality products and foods. They market to environmentally conscious consumers as well as health conscious consumers and this is definitely a growing market in today’s society.