 "Photo: Elizabeth Moskowitz, Daily Texan Staff")
Whole Foods earned 95 percent less profit in this year’s fourth financial quarter than it did last year. The Austin-based organic grocery store earned $1.5 million this quarter, down from $33 million in last year’s fourth quarter.
The profit decline is partly attributed to the current economic climate in the U.S., causing customers to think twice before purchasing the specialty organic food items sold at the grocery store.
Some UT students are willing to sacrifice the quality of the products at Whole Foods in favor of groceries that are less expensive.
Radio-television-film sophomore Stephanie Wallace changed her shopping habits since the beginning of this semester’s economic downturn. Although she primarily shopped at Whole Foods, she has now reduced her trips to the market to about once a month.
“I’ve been trying to shop at H-E-B and other less expensive stores,” Wallace said. “Now I can really only come [to Whole Foods] for quality stuff.”
Despite the dramatic drop in Whole Foods stock prices, stores that offer cheaper groceries have seen an increase in profit. Wal-Mart, for example, has seen an increase in profits in the fourth financial quarter, which runs from July 1 to Sept. 30.
Biology sophomore Katie Crane has been shopping at the H-E-B since last year and has cut down on her trips to specialty stores.
“I maybe shop at Whole Foods once every two months,” Crane said. “If I don’t have a recipe that calls for anything organic, I definitely shop at H-E-B.”
Despite the current economic situation, biology sophomore Meredith Fontana is not willing to sacrifice the quality of her groceries to save money.
“I still try and shop [at Whole Foods] pretty regularly,” Fontana said. “The food quality here is just much better than other stores, and it’s worth spending a little extra money.”
Despite the fact that she is still able to shop regularly at luxury grocery stores, Fontana said she has had to cut corners.
“You have to notice prices a little more,” she said. “Instead of using the same brands over and over again, you start looking at others. Switching brands within the same store will usually save some money.”
Whole Foods executives did not return phone calls from The Daily Texan.
In an attempt to keep a steady flow of customers coming into the store, Whole Foods is implementing a new program to help people find the best bargains on organic foods, according to a company press release.
Certain employees have been trained to find the best bargains around the store and to use coupons efficiently. These employees are called “value gurus” and have already started giving weekly tours to customers around Whole Foods to help them find the best deals.
Leonard Green and Partners, a major retail investment firm, bought $425 million preferred stock in Whole Foods on Nov. 5. If the preferred stock is converted to common stock, Leonard Green will own 17 percent of the company. This decision will temporarily offset the dropping stock prices at Whole Foods, according to another press release.
The same press release attributes part of the company’s profit drop in the last quarter to the purchase of rival organic grocery store Wild Oats for more than $500 million.
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