Editor’s Note: This article is an excerpt from one of RetailWire’s recent online discussions. Each business morning on RetailWire, retail industry executives get plugged in to the latest news and issues with key insights from a panel of retail industry experts.
Whole Foods is looking to put its conscious capitalism to the test with the opening of stores in underserved areas of Chicago and New Orleans. But nowhere has more attention been paid to Whole Foods’ social/commercial experiment than in Detroit where local officials are holding up the chain as a symbol of the city’s comeback.
Walter Robb, co-CEO of Whole Foods, has made a point of telling anyone who will listen that opening stores in places such as Midtown Detroit are part of the company’s plan to serve all types of communities.
“People perceive Whole Foods as only receiving a particular community and I don’t like that,” Robb told Marketplace.
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“We try to be competitive with our prices. I made a personal commitment on behalf of the company for us to be affordable,” Robb added. “This market has some special pricing because this is a different market than we usually serve.”
Whole Foods has been adamant about its commitment to making it in Motown. The company has signed a long-term lease (at $6 a square foot) and two-thirds of the store’s employees are Detroit residents.
“This store celebrates this city, its rich history and its talented, community-minded residents,” said Larry Austin, the store team leader, in a statement. “We’ve incorporated reclaimed wood and signs into the design and invited local artists to contribute murals. We want all our shoppers to feel at home — welcome 100 percent of the time — and we want them to understand how much it means to us to serve them with a store in Motown.”
Retail Experts Focus On Brand Perception And Value
In the comments section of the RetailWire article, retail industry experts shared their opinions and perceptions of the new Whole Foods venture. Overall, respondents praised the retailer’s new mission of providing healthy food options to all consumers, not just affluent spenders.
“The phenomenon that poor people tend to pay more to eat, buy and borrow is a sad fact, so I applaud Whole Foods for trying to empower this great city,” said Zel Bianco, President, Founder and CEO of Interactive Edge. Typically, Whole Foods is available in more upscale communities, Bianco added. “I don’t know if this opening will change that fact, but it may inspire other retailers to get involved.”
The new Whole Foods location also will bring new employment opportunities to Detroit, which encouraged even more positive feedback from discussion participants.
“I am rooting for Whole Foods to be successful in Detroit,” said Larry Negrich, VP of Marketing for CopiaMobile, Inc. “It is good to see things like the opening of Whole Foods, as it can only help the city as it attempts to stabilize its financial footing.”
Ed Rosenbaum, CEO of Rainmaker Solutions, added: “[I applaud] Whole Foods for bringing opportunity to the area. Let’s give this a chance and hope we are seeing others enter these areas because of their successes.”
However, total sales and profit will be the only efficient way to determine if the new store is a success, according to Stephen Needel, Managing Partner at Advanced Simulations.
“If Whole Foods can make money with an inner city store, then it’s a great idea and they should expand the concept wherever feasible,” Needel said. “If it doesn’t make money, pull out or write it off as your contribution to society.” Should the latter take place, “don’t expect others to follow. Shareholders won’t be that amused.”
