Whole Foods and Trader Joe’s: It’s not just about “organics”

In a recent RetailWire panel discussion, I comment on the growth of national and regional grocers taking a strong position on organic or “natural” foods. The question is whether “organic” is sufficient as a brand position to take on Whole Foods and Trader Joe’s. But the bigger issue is whether “natural” is even the key to these two chains’ success. Here’s my point of view:

I question the premise that TJ’s and Whole Foods are successful because they are merely “organic grocery” retailers. So chains trying to crowd into that space (which also has plenty of competition from the big national grocery stores) need some brand differentiation in order to succeed. Fresh Market is another growing chain with a smaller footprint than a typical Whole Foods store.

There is not necessarily anything “natural” about Trader Joe’s well-edited assortment of private-brand packaged and frozen foods. Whole Foods is a lot more than its “organic” positioning because of the “foodie appeal” in its fresh meats and produce. So competitors looking to gain share really need to understand why these two chains are excelling.

Advertisements

0 Responses to “Whole Foods and Trader Joe’s: It’s not just about “organics””



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: