Whole Foods sheds 'whole paycheck' label

Sales for generic brand groceries and other moderately priced goods are up as sales of just about everything else are trending downward.

That poses a problem for high-end retailers like Whole Foods who rely on customers willing to pay quite a bit more for the experience of shopping for their upscale goods at their stores.

Now that gourmet groceries are a luxury most shoppers are quickly cutting out of their budgets, Whole Foods must quickly reposition itself as a better value.

The New York Times reports stores are taking steps such as offering guided tours of good deals shoppers can find and displaying “weekly buys” fliers.

Andrew Wolf, an analyst for BB&T Capital Markets, tells the New York Times that Whole Foods was “a tale of two stores.” He says the grocery items in the middle of the store, dry goods such as cereal and pasta, are competitively priced.

The “outer items,” such as meat and produce, tend to be more expensive at Whole Foods, he said. That can be risky at a time when consumers are becoming increasingly price sensitive.

It’s becoming clear that this worsening economic environment is having an impact on consumers at all economic levels,” Mitchell P. Corwin, an analyst at Morningstar says. “The whole paycheck image can really hurt you.”

Whole Foods, however, does not want to risk losing a segment of its customer base to this image. Long an unconventional retailer, the company has decided to continue to pursue the value branding strategy. One part of the experience Whole Foods does not want to change is the high level of service customers have come to expect.

The next time you visit Whole Foods, ask a representative for a tour of the week’s best deals. You just might go home with a list of suggested recipes for tonight’s dinner.

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--Bridget O'Sullivan

Corporate giants go solar for savings

The biggest store chains in the U.S. are now seeing solar panels as a huge way to save energy and money.

According to The New York Times article, Stores such as Wal Mart, Kohls, Safeway and Wholefoods Market have installed solar panels on their roofs to generate electricity.

At this point, around 10 percent of each chain has solar coverage, but a large increase can be expected. There is a race in place, to beat the Dec. 31 deadline to gain tax advantages for these projects. Although coal is less expensive, companies believe they can save money by economies of scale.

Cutting back on coal and going solar will save these companies a lot of money and help the environment by using renewable resources.

"It's very clear that green energy is now front and center in the minds of the business sector," says Daniel M. Kammen, an energy expert at the University of California, Berkeley. "Not only will you see panels on the roofs of your local stores, but I suspect very soon retailers will have stickers in their windows saying, "This is a green energy store."

Most companies buy their own solar power systems up front, which may cost between $4 and $6 million dollars for a large store. Agreements can be made as well, where the utility company pays the up-front costs and gives stores a break on the high solar power bills.

Corporations are also looking to other forms of renewable energy, such as wind turbines, sky lights and white roofs that help to save money on cooling. Bernard Sosnick, an analyst with Gilford Securities believes, “It’s not as over the horizon as it might seem."

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