Whole Foods Market
Total U.S. Sales
$16 billion in fiscal 2017 (ended Sept. 24, 2017)
*Parent Amazon has not broken out Whole Foods sales since acquiring the grocer
Total U.S. Stores
517 stores in 43 states and Washington, DC (as of August 2022)
U.S. Shopper Count
8 million weekly
Total Canada Stores
14 stores split between British Columbia and Ontario (as of July 2022)
Headquarters
Austin, Texas
Key Facts
- Acquired by Amazon on Aug. 28, 2017
- Provides special discounts in stores to Amazon Prime members
- Ranked 5th best supermarket in Newsweek’s 2022 list of America’s Best Retailers
- Estimated to be the 10th-largest grocery chain in the U.S.
Key Executives
- Chief Executive Officer and President: Jason Buechel
- Chief Financial Officer, Chief Administrative Officer: Keith Manbeck
- Chief Merchandising and Marketing Officer: Sonya Gafsi Oblisk
- EVP, Growth and Development Whole Foods Market & Amazon: Christina Minardi
- EVP, Operations: Bill Jordan
- SVP, Chief Technology Officer: Leandro Balbinot
- SVP, Operational Finance: Robert Fraser
- SVP, Center Store Merchandising: Alyssa Vescio
- SVP, Merchandising Enablement: Karen Christensen
- SVP, Supply Chain & Retail Operations: Bart Beilman
- SVP, Team Member Services: Brian O'Connell
- SVP, Culinary: Jeff Turnas
- SVP, Midwest Operations: David Schwartz
- SVP, North Atlantic & International Operations: Rick Bonin
- SVP, Northeast Operations: Nicole Davia
- SVP, Central West Operations: Angela Lorenzen
- SVP, California Operations: Patrick Bradley
- SVP, Southeast Operations: Matt Ray
Resources
- Whole Foods Market Brand Guidelines
- Recommended Packaging Standards for Whole Body
- Supplier Guidelines
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising
- Collaborative Alliances
- Displays and Signage
- In-Store Media
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
Amazon purchased Whole Foods Market in 2017 as it works to expand its e-commerce dominance into brick-and-mortar stores. The largest natural and organic foods supermarket in the U.S. and the eighth largest food retailer, Whole Foods had been experiencing disappointing sales figures as it lost market share to conventional supermarkets and mass merchants. Activist investors had encouraged the sale.
Amazon has not wasted any time making changes, cutting costs on organic grocery staples in an attempt to shake off the "whole paycheck" stigma. It also started selling Whole Foods' private label brands on its website, placed Amazon Lockers at some stores to facilitate pickups and returns and began offering delivery from Whole Foods in some markets via Amazon Now. Amazon Prime is now Whole Foods' loyalty program, with members receiving special discounts at the alternative grocer.
The change has already brought more shoppers to Whole Foods stores, attracting regulars from specialty grocers including Sprouts and Trader Joe's along with Walmart, Costco, Kroger, Target and Sam's Club. However it's also caused some problems, with shoppers and suppliers complaining that new policies meant to save money have resulted in a loss of the high quality fresh foods and specialty brands that Whole Foods built its business on.
Whole Foods continues to focus on expansion. During NRF Retail's Big Show in January 2023, CEO Jason Buechel said the company planned to open about 50 stores, at a rate of approximately 30 or more a year. Recent openings include a supermarket in New York City's Wall Street and its first Montana location.
Also that year, the retailer unveiled "Growing With Purpose," a 10-year vision plan, which includes reconnecting Whole Foods with its core values as well as increasing the number of promotions it offers and lowering the prices of some private label items. Since implementing price reductions, Buechel says Whole Foods has experienced double-digit unit sales growth on promotional SKUs.
Must-Know Terms
Must-Know Terms
- Whole Story: The retailer's blog is a part of all major marketing campaigns, often bringing in bloggers and other influencers for guest posts.
- Whole Planet Foundation: A nonprofit founded by the retailer in 2006 that aims to fight poverty by providing small loans to entrepreneurs around the world.
- Sourced for Good: A third-party certification program that marks complying products with a seal. International organizations such as Fair Trade USA, Rainforest Alliance, Fairtrade America, Fair Food Program and Equitable Food Initiative are some of the groups that certify products for the program. The expanded Sourced for Good program replaced the Whole Trade Guarantee the retailer had introduced in 2007.
Thought Starters
- Whole Foods has recently shown a new willingness to run co-op programs with brands from major CPGs so don't be afraid to ask.
- The retailer heavily promotes deals offered for Amazon Prime members so look out for ways you can get involved.
- Cause campaigns are extremely important to Whole Foods' identity and the retailer encourages brands to get involved through both account-specific efforts and participation within its larger annual fundraisers.
Promotional Strategy
Promotional Strategy
Amazon has been trying to shed its new acquisition's "Whole Paycheck" image. As soon as the acquisition closed, the retailer lowered prices on staples throughout the store including ground beef, salmon, bananas and eggs between 33% and 48%. The retailer offers discounts on a few dozen products each week, which are promoted with yellow signage in stores, and offers special deep cuts on several SKUs that are only available to Prime Members.
Whole Foods relies heavily on in-store sampling as a way to encourage trial and build basket sizes. Stores have unattended samples in several departments at any given time. Employees in the cheese and prepared foods departments encourage shoppers to ask for tastes. Local and national suppliers previously conducted their own demos, but now must contract with Daymon for four-hour slots. The move is expected to hurt sales of smaller brands.
Whole Foods' promotional strategy aims to position its stores as the best place for quality fresh and prepared foods, which means that food-focused seasonal occasions like Thanksgiving and Easter get the most attention. Whole Foods often works with celebrities to provide recipes and guides for those campaigns.
The retailer also regularly runs short-term promotions to highlight specific categories such as nutritional supplements or recognize food-themed holidays including "National Cookie Day." These can include major discounts offered for just one day or a weekend.
Ongoing Programs
- Prime Day: The grocer is offering 10% off hundreds of in-store items as well as some larger discounts on select products. Shoppers who use their Amazon Prime Visa card during Prime Day earn 6% cash back on purchases, as opposed to the normal 5%.
- Ugly Produce: Whole Foods is piloting a program with Imperfect Produce at 11 California stores to sell small, misshapen and cosmetically flawed seasonal fruits and vegetables at sale prices.
- Health Starts Here: The label is applied to products in the prepared foods department that meet a set of health guidelines based on factors including nutrient density and fat content.
- Sommelier Selects: The biannual program spotlights wines meant to pair with seasonal flavors, which are merchandised on table displays and supported by other signage and digital activity.
- 12 Days of Cheese: Every December, Whole Foods Market's Specialty Cheese team selects a dozen cheeses in time for the holiday season. Prime members enjoy 35% off the chosen cheeses, while non-Prime members receive a 28% discount over the 12-day period. Sampler bags are available, too.
Merchandising
Merchandising Strategy
Stores carry 35,000 to 55,000 SKUs, with the product assortment strongly emphasizing perishable foods. More than 37,000 of those SKUs are organic, including more than 2,000 products added in 2022. The assortment includes wide varieties of gluten-free, vegan, dairy-free and other foods tailored to specific diets, an extensive array of personal care products, as well as a limited offering of home goods, pet items, floral SKUs and alcoholic beverages. It also continues to add local products, spurred by an accelerator program for small producers. Since the retailer was acquired by Amazon some stores have also been selling the company's electronic devices.
Whole Foods has strict quality standards, banning more than 120 ingredients commonly found in packaged foods such as artificial preservatives and high-fructose corn syrup. (By late 2023, that number has more than doubled to 260-plus since the Amazon sale.) It also makes product information readily available. The retailer employs a "Responsibly Grown" rating system for its produce and floral department that provides shoppers with information on producers' adherence to sustainable farming practices. Meat and seafood are rated to indicate the supplier's level of adherence to animal welfare and sustainability standards. Household cleaning products are required to list all of their ingredients on the package. However some of those standards have loosened since the retailer's acquisition by Amazon. For example, Whole Foods had said it would require labeling on all products containing genetically modified organisms by September 2018, but then cancelled that requirement.
Whole Foods each year recognizes brands for quality, innovation, value and sustainability via its Supplier All-Star Awards. For 2023, it honored 16 brands. "These suppliers embody the spirit of collaboration and innovation that Whole Foods Market was built upon more than 40 years ago," said Sonya Gafsi Oblisk, chief merchandising and marketing officer. ALOHA, Amylu Foods, Atlantic Sea Farms, Bridor, Chelten House, Dr. Bronner's, FOODMatch, Forever Cheese, Happy Dirt, Health-Ade, LaBelle Patrimoine, Lundberg Family Farms, Pacific Seafood, Rainier Fruit Co, Siete Family Foods, and Wolffer Estate Vineyard were 2023's honorees.
Bringing the focus back on sustainability in 2021, Whole Foods rolled out a third-party certification program that marks complying products with a “Sourced for Good” seal. International organizations such as Fair Trade USA, Rainforest Alliance, Fairtrade America, Fair Food Program and Equitable Food Initiative are some of the groups that certify products for the program. The expanded Sourced for Good program replaced the Whole Trade Guarantee the retailer had introduced in 2007.
Whole Foods' product selections traditionally varied highly based on location, with the retailer using data from dunnhumby and customer insights to tailor the brands, package sizes, flavors and services available at each store to their shoppers' preferences. However Amazon has shifted Whole Foods towards centralized buying, phasing out some local and regional products. The ownership transition initially had some negative effects on Whole Foods aisles, with stores facing more out-of-stocks and many shoppers complaining about a decline in produce quality. Suppliers are now required to work with Stamford, CT-based retail strategy firm Daymon and its subsidiary SAS Retail Services to check on-shelf inventory. The retailer also implemented slotting allowances, requiring brands to pay for a place on shelves of secondary displays.
In organizational changes, Whole Foods continues to streamline its operations. In 2021, the retailer merged its global and regional merchandising teams into a single team that supports purchasing across the entire company. Dedicated operations teams in the regions — reduced from nine to six in 2023 — focus on merchandising execution and in-store operations, including e-commerce and store support. A new supply chain performance management function is also being developed within the global supply chain unit, to allow stores to focus on customer service. The team member services group is also being realigned as other global support teams are adjusted to improve processes.
In addition, the retailer is transitioning its technology organization to focus more on skills required for software engineering and technical product and program manager roles.
Collaborative Alliances
Collaborative Alliances
In keeping with its overall strategy, Whole Foods' most significant vendor partnerships typically are with local farms and other small suppliers. The retailer has given approximately $21 million worth of low-interest loans to small producers through the "Local Producer Loan Program."
Since 2022, the retailer has invited up-and-coming brands to apply for its Local and Emerging Accelerator Program (LEAP). Participants are eligible for mentoring and education, and may apply for financial support. Graduates of the six-month program could have their products stocked in local or regional Whole Foods stores.
Whole Foods has partnered with specialty retailers for exclusive collections during the holiday season.
In January 2024, it became the exclusive retail supplier of INBLOOM, a holistic plant-based nutrition and supplement brand co-founded by actress and entrepreneur Kate Hudson.
The retailer is piloting a partnership with vegan meal delivery service Purple Carrot, selling its kits of pre-measured ingredients and recipes for two-serving meals at a store in Dedham, Massachusetts.
Displays and Signage
Displays and Signage
Secondary display space at Whole Foods is primarily relegated to endcaps and lobby displays and brands must work with Daymon and SAS Retail Services to create them.
A stanchion sign positioned in lobbies touts the special deals available for Prime Members each week, with discounted SKUs often receiving space in front the produce department. Elsewhere in stores yellow signs are used to mark weekly sales available to all shoppers. Whole Foods previously employed store graphic artists who were responsible for creating custom chalk signs and other displays listing prices and vendor information, but those positions were eliminated in 2018 as part of Amazon's centralization efforts.
Ceiling signs, banners and framed signs are commonly used to tout significant seasonal promotions or cause campaigns or to spotlight seasonal products. Shelf talkers in the wine department direct shoppers to the cheese section for samples of select products.
Whole Foods eliminated its "good-better-best" produce-labeling program in late 2016 in favor of the Responsibly Grown label, with the goal of making the signage easier to understand. The label applies to producers that have completed the alternative grocer's ratings system, which ensures they're not using prohibited pesticides and assesses their sustainability efforts including pollinator protection and water conservation. The standard now also applies to flowers.
In-Store Media
In-Store Media
Whole Foods does not accept any of the syndicated third-party media programs found at traditional supermarkets.
Store Formats/Growth
Store Formats/Growth
Average square footage: 30,000 to 45,000 square feet, though stores can be as small as 20,000 and up to 75,000 square feet.
The retailer's expansion is primarily driven by new store openings, though it will purchase small chains to gain access to desired locations and experienced employees. Stores are typically stand-alone locations within a 20-min drive of 200,000 people or more, and often near college campuses. In some cases stores are relocations, with more natural light and expanded offerings and venues, such as upgraded coffee bars.
Two Whole Foods locations were equipped with parent company Amazon's Just Walk Out technology, but in 2024, Amazon planned to pull Just Walk Out from those locations and replace them with more registers and self checkout options.
By the end of 2023, all 500-plus Whole Foods stores throughout the U.S. should be retrofitted with Amazon One palm-scanning checkout technology. Also, a San Mateo, California, store is the sixth location nationwide to offer Amazon Dash Cart, a smart shopping cart platform that automatically tracks cart items and charges them to a person's linked account.
In March 2024, Whole Foods announced a new small format concept, Whole Foods Market Daily Shop. The stores will range from 7,000 to 14,000 square feet in size, and offer fresh and seasonal produce, meat and seafood, bread, prepared foods, alcohol, supplements and snacks. The first store will open in Manhattan's Upper East Side, with other locations to follow. The Manhattan store will also have a Juice & Java cafe.
Whole Foods Market has also experimented with several ventures that are now closed:
- 365 by Whole Foods: Whole Foods launched its value-focused 365 by Whole Foods format in 2016 and expanded the concept to 12 locations, but in 2019 discontinued expansion and converted all the banners into traditional Whole Foods stores.
- The Roast: Whole Foods took its focus on prepared foods a step further with the June 2017 launch of this standalone, fast-casual restaurant. Located adjacent to a Whole Foods store in Atlanta, The Roast served Brazilian fare made using ingredients that meet the retailer's quality standards along with wine, beer and cocktails. Customers order using digital kiosks.
Special Departments/Services
Special Departments/Services
Stores offer hot and cold food bars that often emphasize global cuisine. Prepared food stations sell pizza, burritos, coffee, juice, sushi and more. Stores typically include sit-down eating areas and customer service booths. All stores have large beer and wine sections that regularly hosting tastings. The prepared foods and bakery departments are responsible for 19% of sales.
More than 250 stores have quick service restaurants, some operated by third parties, and 180 have bars serving beer, wine and spirits. Some stores host cookie bars offering single servings of up to 40 varieties of baked goods. These are located near the coffee and smoothie counter to create a snacking zone.
The Whole Body department located in all stores stocks cosmetics and personal care products.
One of the retailer's most unusual special departments is a mushroom farm that opened in a Bridgewater, New Jersey, store in March 2018. The concept was created by Brooklyn, NY-based Smallhold. That year, Whole Foods also unveiled a store-within-a-store test concept called Plant & Plate at another New Jersey location, stocking jewelry, candles, pottery, garden and home goods, and beauty products.
Third-Party Returns
Amazon has exerted its presence in stores by installing Amazon Lockers in some 500 locations to enable pickups and returns of online Amazon orders, which have increased the number of shoppers coming to Whole Foods stores for short trips. In 2023, the return service expanded to also accept orders from Amazon-owned Zappos.
EV Charging
With the sustainable mode of travel aligning with its ethos, Whole Foods has been on the leading edge of U.S. retailers offering more and better electric vehicle charging stations in their parking lots. The retailer is working with multiple providers (including Blink Charging Co., Volta, EVgo, Tesla and ChargePoint) and has expanded the service to more than half of its locations.
Customer Segments
Customer Segments
Whole Foods core customers, who make up both the retailer's largest customer segment and 40% of its sales, are highly engaged with the retailer and want high-quality, fresh and healthy foods and believe strongly in transparency. They are educated and informed shoppers, digitally savvy and willing to pay for quality. The group shops at Whole Foods about four times per month and the retailer believes it can boost sales by encouraging them to buy just one more item per trip, particularly if the retailer can guide those shoppers to new categories.
Whole Foods shoppers skew to higher incomes, with 75.4% of shoppers living in households with incomes of $60,000 or more and 48.6% having incomes of $100,000 or more.
According to data analytics firm Numerator:
- Whole Foods' typical shopper is between 25 and 34 years old.
- Although a slight majority of Whole Foods customers identify as white, the store is especially popular with Black and Asian American shoppers.
- The typical shopper picks up 9 products for a total cost of about $46 per trip.
- Whole Foods has been experiencing high customer turnover, with the number of new shoppers exceeding the number that quit visiting the store.
Internet Marketing
Internet Marketing Strategy
Whole Foods has a robust digital presence that focuses on promoting food education and its cause activity, with cost-based messaging decidedly secondary.
Wholefoodsmarket.com
Brand advertising opportunities are nearly nonexistent on Whole Foods' website. Home page display ads link to articles in the "Whole Story" blog, brand-agnostic recipes and promotional videos or plug it retailer's mobile application and e-commerce offerings.
The blog is updated about one to three times per week, with posts hosting recipes and cooking tips, promoting specific products and occasionally plugging contests and sweepstakes that supplement seasonal activity. Whole Foods has enlisted celebrity chefs and athletes to provide content for the blog.
The retailer also is constantly adding to its collection of more than 4,000 recipes, which are almost entirely brand agnostic but often involve global or health-focused SKUs that can be hard to find at a conventional supermarket.
The website doubles as an educational resource for the retailer's health-conscious shoppers, providing information on everything from raw milk to food allergies. Whole Foods also devotes significant digital space to explaining its own product standards. The retailer never uses dedicated websites for promotions.
Whole Foods sends out about three emails each week that typically link to articles in the Whole Story blog, the week's sales flyer and recipes on the website, sometimes promoting sales of specific brands. Larger promotions can receive dedicated blasts.
Other websites
The retailer devotes websites to promoting the activities of its nonprofits: the Whole Planet Foundation (wholeplanetfoundation.org) and Whole Kids Foundation (wholekidsfoundation.org).
Mobile Marketing
Mobile Marketing Strategy
Mobile Website
The mobile-optimized version of wholefoodsmarket.com lets visitors:
- Find nearby stores.
- View local sales flyers.
- Browse recipes.
- Read Whole Story blog posts.
- Purchase gift cards or Allegro products.
- Place grocery delivery orders.
- Place catering orders (only available at some stores).
Mobile Application
Whole Foods' mobile application allows users to:
- Browse a collection of recipes sorted by type of dish and bookmark favorites.
- Make and view shopping lists, which can be populated by clicking on individual recipe ingredients or using an "add all" button.
- Find nearby stores.
- Receive notifications about new coupons, sales, recipes or app updates.
- View sales at their local store.
Social Media
Social Media Strategy
An early social media adopter, Whole Foods originally had individual stores conducting their own activity supplemented by national accounts, but the retailer has since eliminated most of the local pages.
On most social media platforms, Whole Foods maintains numerous supplementary accounts including The Whole Kids Foundation and Whole Foods Market UK. These accounts operate with a similar strategy as the main accounts.
Facebook: 4.25 million followers (as of April 2023)
Posts updates every few days. Most are videos of products or prepared foods sold at Whole foods as well as some recipes.
Twitter: 4.1 million followers (as of April 2023)
The retailer used to post nearly every day, focusing on seasonal flavors, prepared foods and advice from their team, but activity tapered off in late 2022.
Instagram: 3 million followers (as of April 2023)
Shares images of food and drinks several times a week. Content heavily mirrors that of its Facebook feed.
Pinterest: 500.6K followers (as of April 2023)
Primarily devoted to seasonally focused boards providing recipes, brief guides on produce or choosing a wine.
YouTube: 93.2K subscribers (as of April 2023)
The retailer posts a handful of videos every month, primarily about products, brands and producers.
E-Commerce
E-Commerce Strategy
Amazon Prime members get free, one-hour pickup from designated parking spots for orders of at least $35 at all Whole Foods locations. Prime members open the Amazon app or visit the Whole Foods Market tab on the Amazon site, select a pickup store, and start shopping. Once they’re ready to check out, they select a one-hour pickup window that works for them and place their order. When they’re ready to pick up their order, they can check-in using the Amazon app to let the store know they’re on their way. According to Amazon, the majority of customers who check-in using the Amazon app before arriving at a Whole Foods store wait just one minute to receive their orders after arriving.
In more than 2,000 cities and towns, Prime members also receive two-hour delivery on more than 170,000 items with orders of $35 or more. The service was introduced as a free perk shortly after Amazon acquired Whole Foods, but the company began piloting a $9.95 fee in select markets in August 2021 to cover increased operating costs, and implemented the service charge nationwide later in 2021.
Amazon has installed lockers at some Whole Foods stores, which allow shoppers to pick up orders made online.
Whole Foods Canada additionally provides same-day grocery delivery via Instacart. The service is being made available to 11 stores, but ultimately will be rolled out to all 14 of Whole Foods locations in greater Vancouver, Victoria, Toronto and Ottawa. Instacart+ members also get free delivery on orders over $35.
Circulars
Circulars and Publications
While Whole Foods does not run a conventional newspaper circular, it does have a weekly two-page sales flyer distributed in stores and online. Sales run from Wednesday to Tuesday and use large photos to spotlight discounts on a mix of fresh, prepared and packaged foods and beverages and health and beauty items. Exclusive and organic SKUs are often highlighted. The products discounted vary significantly from store to store.
Loyalty Programs
Loyalty Programs
Whole Foods offers Amazon Prime members 10% off all sale priced items along with access to additional weekly discounts. Shoppers receive the deals at checkout by using their phone number or scanning a code within Whole Foods' mobile application.
Prime Members had previously only received periodic benefits such as special coupons for turkey purchases ahead of Thanksgiving and roses before Valentine's Day. Whole Foods' loyalty program pilots, digital accounts and mobile coupons were all shut down on May 2, 2018 to make way for the Prime integration.
In February 2018, Amazon began applying the 5% back Prime members with Amazon Rewards Visa cards receive from amazon.com purchases to those made at Whole Foods stores. Non-Prime members who use the card receive 3% back.
Private Label
Private Label
Private label sales totaled $2.3 billion in fiscal year 2016, accounting for 15% of retail sales. The retailer has two private label brands:
- 365 by Whole Foods Market: The value brand comprising organic and conventional packaged foods received a logo/packaging redesign in 2020. The line has more than 3,000 products that include over 1,200 organic SKUs. In 2023, hundreds of 365 products became available on Amazon for nationwide shipping.
- Whole Foods Market: The premium line spans a wide range of categories including frozen foods, personal care, packaged snacks, non-alcoholic beverages and OTC supplements.
Whole Foods carries about 400 exclusive products at any given time, with the assortment changing regularly.
Cause/Community Programs
Cause/Community Programs
Cause marketing is more ingrained in Whole Foods than perhaps any other major retailer. The retailer donates 5% of its after-tax profits to charity annually. It also donates millions of pounds of perishable and nonperishable food to local food banks and food rescue organizations every year, with individual stores participating in a variety of local food waste diversion programs. In 2023, Whole Foods revised its goal to reduce food waste — by half by 2030.
As part of those efforts, Whole Foods in 2020 pledged to donate more than 182 million meals to families in need over the next 10 years via a "Nourishing our Neighborhoods" program encompassing the purchase of 19 refrigerated vans, and donation of two refrigerated catering vans, to community-based food rescue and redistribution programs to transport both perishable and nonperishable food to communities within 18 markets across the U.S. and Canada. Each van is intended to provide recipient organizations with 20,000 pounds of rescued food per week, donated from Whole Foods Market and surrounding grocers and retailers, with initial donations from RightRice, Justin’s and Severino Pasta Co. In 2022 it diverted 72% of its stores' waste through recycling and composting efforts, and donated more than 30 million meals to charities.
Whole Foods has three nonprofit foundations:
Whole Kids Foundation: Dedicated to improving children's nutrition, the nonprofit has provided thousands of schools with grants to build gardens as part of a partnership with FoodCorps, and installed thousands of salad bars in U.S. schools through the Let's Move Salad Bars to Schools program. It also has trained more than 10,000 teachers through its healthy teacher education program and doles out Healthy Kids Innovation Grants to fund the development of new ideas about children's nutrition. The nonprofit released a mobile application in 2017 to teach kids about organic farming.
The nonprofit has a host of corporate sponsors and raises money from in-store events and checkout donations via an annual "Growing Healthy Kids" campaign. Whole Foods also donates 1% of total sales of their exclusive PBS Kids holiday line to the Whole Kids Foundation.
For the 2020 back-to-school season, purchases of snacks from Annie's, Bear, Larabar, Mavericks, Siete, SkinnyPop and Pirate Brands' Pirate's Booty triggered a 10-cent donation to the Whole Kids Foundation to grow school gardens. In 2018, Whole Foods marked "National Pollinators Week" in June by running a "Give Bees a Chance" fundraiser for the nonprofit to supply 50 schools with beehives. In 2017, Whole Foods and King Arthur Flour ran a sweepstakes and fundraiser for the organization that kicked off on Giving Tuesday.
Whole Planet Foundation: The organization works to empower poor people in the 69 countries that provide products to the retailer through microcredit, giving small loans to entrepreneurs in the developing world. The nonprofit has distributed more than $70 million to 1.5 million families. Products that meet the retailer's standards for wages, working conditions and environmental practices receive a "Sourced for Good" seal through a third-party certification program (replacing the Whole Trade Guarantee the retailer had introduced in 2007).
Whole Foods also conducts an annual "Prosperity Campaign" in March that solicits donations for the nonprofit online and in stores and enlists suppliers to make their own contributions to the cause. In August, the retailer has run a virtual 10K where registrants are entered into a sweeps awarding a prize package from the campaign's sponsors; in 2020 the effort was instead a virtual 5k in July.
Whole Cities Foundation: The nonprofit aims to improve access to healthy foods in underserved communities by partnering with local organizations on nutrition education programs, cooking classes and other efforts.
Whole Foods also supports some external charities. The retailer partners with American Forests during the holiday season to plant a tree for every Christmas tree sold in stores. Each store has its own charitable budget, which they use to build goodwill in the communities where they operate. Shoppers who bring their own bag receive a 10-cent discount on their purchase, but can opt to donate that money to a local nonprofit instead.
Pollinator Health Policy
Whole Foods has acknowledged the important role native pollinators play in the food system. Connected to that, the retailer announced a new pollinator policy in December 2023. By 2025 the company said it will:
- Require all fresh produce and floral growers to implement an integrated pest management system that relies less on chemical pesticides and instead prioritizes preventative and biological pest control.
- Prohibit the use of nitroguanidine neonicotinoids in all potted plants they sell.
- Encourage all suppliers of fresh produce and flowers to phase out nitroguanidine neonicotinoids.
Renewable Energy
Amazon plans to build a wind farm in Mississippi to help power its fulfillment centers and a Whole Foods Market.
Advertising Strategy
Advertising Strategy
Tagline: Whatever Makes You Whole
Whole Foods ran no national advertising in 2016, believing that its funds would be better spent elsewhere. The retailer pivoted in 2017, increasing its marketing spend and pledging to run ads year round. That strategy has continued since Whole Foods was acquired by Amazon, with the retailer introducing the Whatever Makes You Whole tagline in February 2018 as part of a huge media campaign incorporating TV and radio spots and digital ads. The retailer is continuing to increase its spending on advertisements in 2019, with Kantar data indicating Whole Foods was the #1 grocery advertiser in the U.S. in the second quarter of 2019.
The retailer relies on radio spots and run-of-press newspaper ads to promote sales and new stores and to tout the retailer's high quality standards. Digital ads are used for the same purposes but also link to coupons and recipes. TV buys more typically promote ongoing programs like the retailer's meat rating system.
Solution Providers
Solution Providers
- Analytics for point-of-sale data, consumer insights and industry metrics: Nielsen
- Creative: MullenLowe LA
- Customer data and insights: Dunnhumby
- Enterprise resource planning: Infor, New York
- Media Advertising: MediaCom, London
- Product discovery: RangeMe, San Francisco
- Retail strategy: Daymon, Stamford, Connecticut
- POS advertising: Neptune Retail Solutions, Jersey City, New Jersey
Sponsorships
Sponsorships
Whole Foods sponsors the Glendale CO-based indoor-outdoor sports center, Infinity Park, which hosts the Glendale Raptors rugby team. The retailer also regulary supports small events in its operating area, including marathons and festivals. Whole Foods does not sponsor any major sports team.
Marketing Expenditures
Marketing Expenditures
Before being acquired by Amazon, Whole Foods Market had been reporting a steadily increasing advertising budget, spending $113 million in 2017, $96 million in 2016 and $89 million in 2015.
![Whole Foods Market](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/whole_foods_logo.png)
Whole Foods Market Promotional Calendar
A roundup of seasonal promotions.
January
- New Year: Self-care focus includes a semi-annual supplements sale, plant-powered recipes and related tips from bloggers.
- Super Bowl: Offers game-day snack suggestions.
February
- Valentine's Day: Offers discounts on wine, roses, chocolate-covered strawberries and other items for at-home celebrations.
March
- Prosperity Campaign: A fundraiser for the Whole Planet Foundation incorporates donations from manufacturers and shoppers. In 2018 the retailer tied the campaign to the observance of International Women's Day.
- Pi Day: Offers discounts on pies from its prepared foods department and makes donations to the Whole Planet Foundation based on Allegro Coffee sales.
- Beauty Week: Offers discounts on cosmetics and personal care products and sells a limited edition "beauty bag" filled small-sized SKUs.
- Passover: Partnered with cookbook author Joan Nathan in 2018 to offer prepared foods based on her recipes. Her most recent book was also sold at some stores.
April
- Spring Cleaning
May
- Sommelier Selects: Spotlights summer wines chosen by the retailer's master sommelier.
- Mother's Day: Suggests flowers, brunch options, products for pampering.
June
- Father's Day: Offers discounts on steaks for holiday grilling.
- Prime Day: Social media begins touting deals for Prime members.
- Summer/Grilling
July
- Prime Day: For 2023, offered 10% off hundreds of in-store items as well larger discounts on select products. Amazon Prime Rewards Visa cardholders earned 6% back (instead of the standard 5%) on Prime Day purchases.
- Sweet Summer Daze: Savings on seasonal produce.
August
- Virtual 10K: A fundraiser for the Whole Planet Foundation provides sweepstakes entry in exchange for donations.
- Back to School
- Sweet Summer Daze
September
- Fall: Promotes seasonal flavors of private label products and recipes incorporating pumpkins.
- Growing Healthy Kids: The annual fundraiser for the Whole Kids Foundation solicits donations at checkout and through in-store events. The retailer also enlists manufacturers to make their own donations to the cause.
- Whole Foodie Festival: Two weeks of sales. Prime members receive special deals on select cheeses, wines, fruits, sushi, caviar and more. Social media plays up promotions with #WholeFoodieFest. Local stores offer some of their own deals as well.
- Jewish High Holidays: Prepared foods departments in select markets offer traditional dishes for Rosh Hashanah and Yom Kippur.
- National Coffee Day: Whole Foods' team members share top local coffee picks on social media.
- Football season: Social media touts discounts on catered foods.
- Labor Day
- Hispanic Heritage Month
- National Bacon Day
October
- Food Trends: Releases their annual forecast for the top food trends for the upcoming year.
- Halloween: Stores host trick-or-treating events. Social media promotes deals on frozen pizza for Prime members.
- Fall: Highlights seasonal flavors, including picks for National Cider Month.
- Whole Foodie Festival
- Hispanic Heritage Month
November
- Holiday: Spotlights its prepared food department and provides cooking and hosting guides geared towards accommodating guests with dietary restrictions.
- Giving Tuesday: Social media and digital activity promotes the Whole Cities Foundation and Whole Planet Foundation.
December
- 12 Days of Cheese: Sells a different cheese at a discounted price every day for 12 days.
- National Cookie Day: Treats from the cookie bar are half price.
- New Year's Eve: Sale on products for at-home celebrations such as prosecco and wine.