Shop Talk
Retailers, consumers and prices
Check Out Line: Would you like some wine with that weak economy?
Check out the latest poll on affluent consumers’ spending habits.
Affluent consumers around the world may be worried about the economy, but they are still spending on items they value most: food, wine and dining out, according to a study released by HSBC Global Pulse.
Seventy-two percent of those polled said the amount of wine they drank had not changed in the past year, while 67 percent said their spending on wine was unchanged, HSBC said.
Meanwhile, 73 percent still dine out nearly once a week and 39 percent still eat at restaurants at least three times a week, according to the study.
Of those polled, 80 percent have household income above $100,000 and 19 percent are above $250,000, according to HSBC. Fifty-seven percent are college grads and 43 percent have post-graduate degrees.
That’s not to say these consumers are unaffected by the weak economy as the most important criteria (95 percent) in wine purchases is “value/price,” according to HSBC.
Fresh food and well-known brands also scored well. Seventy-nine percent said they are willing to spend more for locally grown products, 62 percent would spend more for organic foods and 82 percent would spend more for well-known brands, HSBC said.
Show must go on for Organics…
This year’s All Things Organic conference and expo showcased necessity as the mother of invention. Slumping sales and a weak economy have forced the industry to innovate just to hold onto customers.
In a 2009 briefing on the organic packaged food market, Euromonitor International said the largest threat to the future growth of organic products is price sensitivity among U.S. consumers in the current economic climate.
“In previous years, many consumers were willing to trade up to premium products,” the briefing said. “However, more consumers are looking to trade down, as they can no longer afford to even try some premium products, much less purchase them on a regular basis.”
The response has been for some companies to expand their product offerings, such as Clorox’s Green Works laundry detergent, hitting store shelves this summer, and Rain Organic Vodka’s new lavender flavor.
Others are expanding their reach as they try to drive sales. Safeway’s O Organics line, for example, is now in other grocery chains, such as Albertsons.
Still, people were all smiles, saying that while their sales were down, their companies had still experienced growth. In their eyes, weathering the economic storm means that they’re just that much more prepared for the recovery.
Watch the audio slide show below:
I grow my own organic vegies and fruits, its fun and also saves a lot of money compared to the organic produce sold at the supermarket. Seeds are really cheap and give an excellent return on investment. I never would have thought that going green could be so much fun.
Whole Foods selling 13 stores in settlement
Natural and organic food grocer Whole Foods will sell 13 stores as part of a settlement that ends an antitrust battle with U.S. regulators over its acquisition of rival Wild Oats.
Is your store on the list?
- 7133 N. Oracle Rd., Tucson, AZ
- 8688 E. Raintree Dr., Scottsdale, AZ
- 2584 Baseline Rd., Boulder, CO
- 1651 Broadway St., Boulder, CO
- 3180 New Center Pt., Colorado Springs, CO
- 5910 S. University Blvd., Littleton, CO
- 9229 N Sheridan Blvd., Westminster, CO
- 340 N. Main St., West Hartford, CT
- 4301 Main St., Kansas City, MO
- 1090 St. Francis Dr., Santa Fe, NM
- 7250 W. Lake Mead Blvd., Las Vegas, NV
- 19440 N.W. Cornell Rd., Hillsboro, OR
- 6930 S. Highland Dr., Salt Lake City, UT
(Photo\Mike Blake, Reuters)
I would have liked to have seen a greater impact on Whole Foods from this settlement – apparently these were underperforming stores for them – what kind of punishment is that? I do think its unfortunate that the stores will simply close – its not like Wild Oats is going to reopen. So in the end its the consumer that suffers – either to the highly marked up foods at Whole Foods or because they now have one less place to shop for organics. Consumers need to learn their options for organic foods: farmer’s markets, local health food stores, and shopping online (www.shoporganic.com for one) are all good options.
Stretching your food dollar at Whole Foods
Food prices are on their way to posting their biggest increase in nearly 20 years and it’s not just the average consumer who is feeling the pain.
Whole Foods Markets Inc, the upscale supermarket chain known for selling natural and organic food to an affluent clientele, has rolled out programs to show consumers how to budget shop at its stores.
The chain — referred to by some as “Whole Paycheck” — has “value gurus” who take customers on a tour around the stores and show them how to get the best deals. It is highlighting its 365 private label brand, weekly promotions and other deals. And, it has launched “The Whole Deal,” a site that invites shoppers to share their money-saving tips.
Grocery stores have seen margins pressured as consumers pull back on certain organic food, switch to store brands from national brands and cook more meals at home rather than buying prepared food.
(Photo: Reuters)
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