John Mackey, CEO of grocer Whole Foods, wants to help you be healthy. He told Associated Press he's moving the merchandising away from gourmet chocolates and their kin, and he's moving the labeling toward nutrition-density. Nutrition-density labeling shows the amount of nutrients per item volume.
Yet since its founding, Whole Foods has profited from having introduced food items—such as sea salts and truffle oil—which fit the label "organic" better than the label "healthful." If you view Mr. Mackey's decision as a model for your own retailing, don't go to extremes. A range of studies have shown that consumers continue to want indulgences, even in these economically tough times—and some say especially in these tough times. A research team from City University of New York, Loyola College, and Duke University found that when a healthy salad was added to a list of side dish choices, diners separately identified as high in self-control actually became more likely to order the French fries.
Offer a small frivolity that isn't too expensive. That description is important to keep in mind as you interpret the Whole Foods changes. Shoppers have moved from frivolity toward frugality. Among the indulgences available at Whole Foods were not only quite expensive items, but also ostentatious items. Consider the fountains spewing out melted chocolate which allowed shoppers to fresh-dip their organic turnips or whatever else they chose. In the face of the Great Recession, sales of the indulgences plummeted. The company had to secure additional funding from a major investor, and it needed to tighten inventory.
You'll want to decide how to best balance healthy with indulgent in your own merchandising. And you'll want to move the balance point between the two over time. Do it gradually to help maintain a trustworthy personality with your target markets.
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