By Lisa Fickenscher
July 28, 2016
Whole Foods can’t seem to shake its “Whole Paycheck” label.
Shares plunged 9 percent on Thursday after the grocer’s latest price cuts failed to impress customers.
Whole Foods’ prices are still 15 to 20 percent higher than its competitors, according to Edward Jones analyst Brian Yarbrough.
“That’s a big problem,” Jones said. “They need to be within 3 to 7 percent of their competitors’ prices.”
The Austin, Texas-based grocer on Wednesday reported that same-store sales fell 2.6 percent, representing its fourth consecutive quarterly decline.
Meanwhile, more competitively priced chains like Kroger, Costco and Trader Joe’s are stealing market share.
Earlier this week, Goldman Sachs analyst Stephen Tanal slapped a “sell” rating on Whole Foods.
“As conventional grocers, warehouse clubs and lower-priced concepts continue to grow their presence,” Tanal wrote, they have left “high-end specialty players like Whole Foods struggling. Competition is relentless and intensifying.”
Shares lost $3.03 cents Thursday, closing at $30.61
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