How Affordable Is Whole Foods, Really?
Whole Foods/Facebook
By Christopher Kane/June 14, 2022 11:48 am EST
The merger came at a time when sales at Whole Foods were slumping. According to the Los Angeles Times, the company was found guilty of overcharging customers in its California stores and was forced to pay an $800,000 penalty. A year later, a commissioner from New York City’s Department of Consumer Affairs reported that inspectors involved in investigating Whole Foods’ prepackaged products said it was the worst case of mislabeling they had ever seen.
Higher prices are not just a consequence of mislabeling and overcharging for certain prepackaged items, however. Investopedia traces the history of higher prices at Whole Foods back to its roots as the first organic grocery purveyor. Studies indicate that customers pay an average of 10% to 20% more for groceries at the supermarket chain, and, according to the U.S. Department of Agriculture (USDA), this is largely due to differences between organic and nonorganic food items.
The agency’s Economic Research Service reports that sales of organic foods began to boom after the government began regulating labels for products in the sector 20 years ago. The USDA reports that, in 2010, organic spinach cost 7% more while organic eggs cost as much as 82% more than their nonorganic counterparts.
But does Whole Foods remain that much more expensive than other grocery stores that also offer organic products?
As competition increases in organic foods markets, prices have fallen
Alexi Rosenfeld/Getty Images
At the same time, smart shoppers should be wary of the salad bar at Whole Foods, along with name-brand and gluten-free products, meats, kitchen staples, and — perhaps as evidenced by lawsuits against the company for overcharging — prepared food items.
