Trader Joe’s and Whole Foods have been supermarket rivals for a while now. Trader Joe’s has always had the appeal of providing good quality food, along with organic options, with reasonable prices. Now the Southern California-based company appears to be slashing prices even more, and could force Whole Foods to follow suit.
According to Business Insider, bank analysts compared prices for 77 items between a Trader Joe’s and a Whole Foods that are in close proximity to each other in New York, and found that overall, Trader Joe’s was 26 percent cheaper. Perishables were 30 percent cheaper, while non-perishables were 24 percent cheaper. Trader Joe’s private label items were 15 percent cheaper than that of Whole Food’s 365 line.
Because this price gap is larger than previous ones, analysts from Deutsche Bank suspect that Trader Joe’s is cutting prices across its 500 stores. In 2013, the popular chain did a similar price slash, which forced rival Whole Foods to slash prices, as well. This latest price cut could have a similar effect, and further highlights the perception that Whole Foods charges too much for its products.
Whole Foods says that they are also lowering prices and highlighting discounts. Perhaps, these include a plan to sell “ugly produce” at discounted prices in Northern California stores starting in late April. And on National Cheese Day, they offered a 20 percent discount on all organic cheeses.
(via Business Insider)