Whole Foods plans to begin the food holiday celebration with the National Cheese Lovers Day on January 20 and National Green Juice Day on January 26. For the National Cheese Lovers Day, the retailer said it would allow customers to sample an assortment of cheeses at its stores. On the National Green Juice Day, Whole Foods plans to offer digital coupons that give shoppers $2 off any large store-made juice or smoothie between January 25 and January 31.
The food holiday celebrations this year will be a mixture of past food holiday celebrations and new ones, and they’re going to be announced one week in advance, Whole Foods said.
What This Means for Whole Foods
Whole Foods has been widely criticized for overpricing its goods. And the fact that other retailers, Kroger Co. (KR) and Wal-Mart Stores Inc. (WMT) for instance, have started loading their shelves with low-cost organic food products is making things more difficult for Whole Foods. Whole Foods’ revenue trend over the past three years is big proof of the growing problem.
The retailer grew its revenue the lowest in fiscal 2016 over the past three years. It grew its top-line by $1.277 billion in 2014 versus 2013. 2015 versus 2014 revenue increase was $1.195 billion. The most troubling number, though, was 2016 versus 2015 where the revenue increase was just $335 million.
Overall, the food holiday celebrations, which will be bigger this year, as the retailer said, is aimed at improving its top-line across various sales channels. For instance, the lure of sampling a variety of cheeses is likely to improve foot traffic at its stores and hence, increase the chances of generating more sales.
In addition, the retailer said the digital coupon for the celebration of the National Green Juice Day would be available on its mobile app. This could also mean Whole Foods is planning to use cheaper offerings to attract more online patronage.
The organic and natural food retailer said in its fiscal 2016 report that it is investing in initiatives that will drive traffic and sales. The holiday celebrations seems to be one of those strategies. With the company’s current cost reduction endeavors, and if the food holiday celebrations along with other initiatives yield impressive revenue growth, investors can expect WFM’s bottom-line, which has suffered for close to two years, to build on its recent improvement.