Whole Foods centralizes category management

Faced with increasing competition from retailers that sell organic and sustainable brands, Austin, Texas-based Whole Foods Market is adopting a more centralized category management strategy, according to an article posted Jan. 9 on Fast Company’s online newsletter. This could make it more difficult for new food companies to get on store shelves in the retailer’s 11 regional markets, stated the article titled “Will Whole Foods’ New Buying Strategy Make It Harder for Food Startups?”

Previously Whole Foods’ local and regional buyers had considerable autonomy, so entrepreneurs could gain a foothold in particular locales before expanding. Under the new policy, national brands will deal only with the retailer’s national category managers. Although local brands will still work with local Whole Foods buyers, the category managers will oversee and undoubtedly influence purchasing decisions, the article said.

For more information, read https://www.fastcoexist.com/3066780/will-whole-foods-new-buying-strategy-make-it-harder-for-food-startups-to-launch.