Whole Foods Is Losing Customers
Despite Q2 earnings per share that beat analysts expectations, Whole Foods investors should be worried about an even more critical sales figure.
While total sales increased by a meager 1.3%, transactions at the green grocer fell 2.1%, and that’s a much more telling metric, Business Insider reports.
Transactions are a direct measure of foot traffic, and while Whole Foods’ 3% drop in same-store sales can be attributed to price cuts, there’s no good way to explain a drop in traffic other than a loss of customers.
The transaction drop is a clear sign Whole Foods is losing customers. The primary reason, according to analysts, is that its prices are still too high when compared to its competitors—especially with low-cost foreign chains like Aldi swooping in.
That could change, though, as Whole Foods just unveiled its new low-cost "365" stores in an effort to capture customers in a changing retail landscape.[BI]
