Wholesome Living

At Whole Foods Market, ceiling banners are more likely to detail a product's organic origins than its sale price.With its slogan, "Whole Foods, Whole People, Whole Planet," the company touts both the nutritional and the ethical benefits of natural and organic foods. Its success in addressing the needs of the increasingly health-conscious U.S. consumer through innovative merchandising and an attractive, informative store environment led Supermarket News to recently proclaim that "Whole Foods Market continued to set the standard for food retailing in 2006."Led by vegan co-founder John Mackey, the Austin, TX-based company claims to shun any artificial preservatives, colors and flavors, and hydrogenated fats and other artificial ingredients in its products. This rule applies to both perishables, which comprise approximately two-thirds of store merchandise, as well as non-perishables, a supply that continues to grow. This strict focus on natural and organic fare means that major packaged food companies have a limited presence in the chain because most fail to comply with the ingredient restrictions. However, the retailer does carry health-conscious and premium items from select CPGs, including Unilever (Ben & Jerry's), General Mills (Cheerios) and InBev (Stella Artois). It also stocks several health brands that have been purchased by national conglomerates over the years, such as Kashi (Kellogg Co.), Odwalla (Coca-Cola) and Izze (PepsiCo). The chain does not use traditional advertising methods such as TV ads and newspaper circulars, relying instead on brand reputation and ideology. Whole Foods focuses marketing efforts locally, allowing innovation and experimentation at the store level. The retailer tends to garner attention by supporting community causes and employing grassroots marketing campaigns.Whole Foods stores average 34,500 square feet in size, although locations opened in the last three years regularly have exceeded 50,000 square feet and tend to span 1-1/2 or two levels. Stores carry more than 30,000 SKUs. Produce, meat, dairy and other specialty departments line the store perimeter, with non-perishables and prepared items merchandised in the interior. The exact layout, however, can vary significantly by location, and stores boast unique design elements such as mezzanines and lavish specialty departments. Modernist design components complement the warm, "natural" aesthetics provided by dim lighting, earth tones and wooden fixtures.The retailer devotes two-thirds of shelf space to prepared foods, which generate large profits. Bars, aisles, coolers and stations for confections, entrees, side dishes, sushi, sandwiches and salad items line the store, and a sit-down eatery encourages in-store dining. Telling the StoryStores employ a highly visual style that is packed with glossy signage, emphasizing nutritional information and social impact. Produce, meat and dairy departments carry signage detailing the origins of produce and agricultural techniques; grower profiles with photographs of local farmers dangle over coolers and produce bins. Likewise, packaged food brands are accompanied by ceiling danglers that tout the manufacturer's ideology or the product's nutritional benefits. In a throwback to earlier times in the grocery channel, Whole Foods hires full-time artists at each store to draw original chalkboard displays. Used on endcap headers, stanchions and elsewhere, these signs change daily and accentuate promotions with artwork, humor and eccentricity. Whole Foods also utilizes floor clings, window signs and shelf danglers, largely to promote private-label products or its own promotional initiatives. The retailer sources the majority of its fixtures and displays on its own. Merchandising tactics include wooden floorstands and dump bins, metal racks to house power wings, and merchandising strips. The style adds to the uniform, refined appearance of stores. Product spectaculars are used liberally around the perimeter. While private-label products enjoy much of the in-store support, Whole Foods devotes secondary placement to vendor products, most often through case stacks arranged in unique and angular patterns for aesthetic appeal. Vendor-supplied support, however, is sprinkled throughout stores. Branded displays include permanent floorstands from Odwalla and Pure Fruit Technologies and coolers from Arizona Iced Tea and Illy Caffe, as well as temporary shippers and floorstands from such brands as Martinelli's and Epicurean.

Wholesome Living

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