How Whole Foods Market plans to be No. 1 grocer in America

Austin-based Whole Foods Market is trying to up its marketing game by increasing its spending on advertisements by $14 million in four years. 

According to Kantar, a brand communications company, after Amazon acquired the grocer back in 2017, other retailers were concerned about the effects the retail giant would have on the grocery market. Kantar’s latest research reveals that the company may by struggling a bit more than the industry thought it would, with the prediction that the grocer would spend $18 million on ads in 2019 alone, a significant increase from the $4.3 million the company spent in 2016. 

In an exclusive interview with Store Brands, Kantar Director of Marketing Jim Leichenko explained that Whole Foods Market is looking to become the No. 1 grocery advertiser of the second quarter of 2019, reaffirming Amazon’s commitment to becoming a significant force within the grocery industry.

“It could simply be an attempt to boost its grocery sales,” Leichenko said. 

Back in April, Amazon’s quarterly report revealed that the Whole Foods Market grocery chain may not be getting the boost in revenue and traffic that the company was hoping for with price cuts. Even with the announced average of 20% off certain items, Whole Foods still has higher prices than other national grocery retailers. A recent analysis from Morgan Stanley revealed that a basket of items at Whole Foods costs $198, while it’s $172 at a conventional grocery store and $157 at Kroger.