Whole Foods is the world’s largest organic grocery retailer, whose core values revolve around the impetus to sell the highest quality and most organic products available. Originating in the US the high-end grocer has subsequently made its debut in London and is now looking to ramp up expansion into new areas across the country. The feel of the store is far more rustic than the often sterile nature of traditional supermarkets; fruit and vegetables displayed on stands and hand drawn signage on chalk boards emulate the feel of a farmers market.
At the back of the store there is a deli area which stocks a large array of speciality cheeses. The emphasis on this section of the outlet is traceability, reflecting consumer desire for more authentic experiences. Instore signage is used to educate the consumer on the origin of products to enable them to make more informed purchasing decisions – tags on the cheese, for example, show the majority to be from Italy, France, Spain and the UK. In the entrance to the deli there is also a stand dedicated to Parmagiano Reggiano where shoppers can ‘meet’ producer Giorgio Cravero, the ‘5th generation manufacturers of iconic Italian cheese.’ This allows the consumer to take a glimpse at the often all too illusive supply chain, building a level of trust between shopper and retailer. Complimentary items such as chutneys, graters and wines were positioned close by to drive cross-merchandise sales.
Adjacent to the cheese counter is a large selection of cooked meats from Italy, France, Spain and the UK. Whole Foods is very much revered for its abundant assortment of fresh produce. The selection, which was mainly from Italy, covered a range of prices but the Italian items very much targeted a more premium market. Truffle Italian Salami selling at GBP5.39 (EUR6.70) per 100g, for example, stands in stark contrast to British Unsmoked Ham sold at GBP1.69 (EUR2.10) per 100g. The prices clearly reflected the more luxurious connotations of foreign products, blending perfectly with the high-end nature of Whole Foods.
The origin of pre-packaged slices of meat was not made clear, however a conversation with a shop assistant showed a number to be from Italy – mainly the Golfera brand. In keeping with the theme at the meat counter these were more expensive, ranging from GBP3.39 (EUR4.21) to GB5.99 (EUR7.45), with the packaging giving an authentic feel as if they slices had been freshly wrapped in an Italian deli. This compared to British meats which had a plastic packaging with call out signs highlighting the fact that these products were on offer.
Elsewhere throughout the store promotions to show the origin of products were far more limited, if not non-existent. Instead the consumer has to rely on effective packaging to gauge where an item was from, and even this proved a little tricky. A beautifully packaged jar of tomato sauce with a unique named seemed to suggest an air of Italy but on closer inspection was a British brand.
The main focus on tomato sauces was more geared towards Whole Foods drive for organic, ‘Mr Organic’ sauces, for example, dominated shelf space at eye level and had a significant number of discounts to lure in shoppers. This will undoubtedly appeal to the needs of the retailer’s core consumers. On the top shelf there were some more authentic looking jars, notably the ‘Seggiano’ brand where all ingredients had been produced in Italy. These were more expensive than their British counterparts, showing consumer impetus to dish out more cash for a more genuine experience.
Looking at the product labels olive oil was largely a mix of both Italian and Greek origin, but again there was little else to demonstrate where a product had come. Due to the shear plethora of brands available here it became somewhat challenging to begin to identify the true Italian brands.
However, Lunaio and Seggiano jumped out with their ‘real food from Italy’ taglines, targeting the middle to high-end price bracket. The olive oils were arranged by brand, but this often led to a somewhat adhoc pricing system with a GBP6.99 (EUR8.69) bottle placed next to a GBP3.49 (EUR 4.34) bottle.
Fresh pasta was predominantly the retailer’s own label, although it did boast a ‘Made in Italy’ tag on the packaging. This appeases consumer demand to get behind the supply chain while drawing shoppers in to higher margin private label goods.
Dry pasta told a very different story, with more Italian brands evident. While, in keeping with Whole Foods core values, organic pasta dominated shelf space at eye level to capture shopper attention, a feel of Italy could be seen across the shelf. Rustichella D’Abruzzo sat across two shelves, but interestingly this more expensive brand was positioned on the bottom.
This could well be to make room for more recognisable foreign brands in the UK such as De Cecco which, although cheaper, sat on the top shelves.
By Clare Nutter, Planet Retail