August 3, 2014

IT’S AS IF MARKETS ENCOURAGE COMPANIES TO GIVE PEOPLE WHAT THEY WANT, AT LOWER PRICES, OR SOMETHING: Whole Foods’ Success Breeds Competitors, Squeezes Profit Margins. “The problem is that at Whole Foods, shoppers have been paying way over the cost of regular produce, and its success in getting them to do so has now attracted a lot of competitors, from rival organics chains like Sprouts and Trader Joe’s to mass-market retailers like Walmart and Costco. As a result, the price premium for organic produce is crashing down. On a recent shopping trip, a pound of organic apples cost $2.99 at Whole Foods but just $1.99 at Sprouts and even less at Costco.”