Trader Joe’s seems to be dropping prices on their items again. In a pricing study conducted by Deutsche Bank analyst Karen Short, they have reportedly discovered that Trader Joe’s is about 26% cheaper than Whole Foods.
Not exactly a shock factor. Trader Joe’s pricing has always been lower than Whole Foods but some analyst are inclined to believe that they’re going to drop that price point even lower. Trader Joe’s has a knack of lowering prices to celebrate their nationwide expansion.
After reaching 300 stores in 2013, they cut prices on about 200 items. Since they have nearly 500 stores now, they seem to be slashing prices once again.
Coincidence? Maybe not. Last year, Whole Foods also announced a new cheaper grocery store concept called 365 by Whole Foods and the first store is slated to open May 2016. In regard to the new store concept, Jeff Turnas, President of Whole Foods Market noted:
“We plan to open up to five 365 by Whole Foods Market stores in the second half of next year with the expectation of doubling the number of openings in 2017…
Our first opening will be in the Silver Lake area of Los Angeles, which we think is an ideal community to bring a modern shopping experience that draws from the best innovations of Whole Foods Market stores and gives them a new expression.
With a fresh format and unique product assortment, we think 365 will offer convenience and value while providing the quality standards and transparency that consumers love and expect.”
Source: 365 by Whole Foods
Those familiar with Whole Foods knows that their own 365 Everyday Value branded items are your best bet for shopping for quality and healthy grocery on a budget. Whole Foods new store concept will undoubtedly feature hundreds of lower prices for their 365 products along with other budget friendly brands. You can find out more about 365 store locations at 365bywfm.com.
Short revealed in her price analysis that the price difference is the most prominent in the following areas:
According the Short, price checks for both brand’s private label items were matched until the most recent check. With the 365 stores opening in 2 months and Trader Joe’s recent price cuts… could TJ be gearing up for a price war?