Whole Foods uses tech to streamline operations

By Matthew Stern

JANUARY 7, 2016

Pricing and public perception are areas in which Whole Foods has trouble winning. A slew of bad press and the legal matter of a $500,000 settlement in New York City over allegations of overcharging has led to concerns that the biggest name in natural may be running out of gas. But the company hopes to turn things around. One way is by streamlining its operations with new technology.

According to Marketplace, the grocer is undergoing a tech overhaul. Jason Beuchel, chief information officer at Whole Foods, discussed a number of the coming developments, including a new point-of-sale system that allows customers to more easily take advantage of coupons in the offing. There is also a kiosk system that will allow customers to order and customize their sandwiches by iPad, so they can shop while they wait for food during the lunchtime rush.

Such technological innovations are in keeping with CEO John Mackey's nine-point plan, which he announced on a November conference call after a reported sales growth slowdown and transaction decline in the fourth quarter.

Photo: RetailWire

On that call, detailed in a MarketWatch article, Mr. Mackey, said the plan was being enacted to communicate differentiation, improve price perception and evolve the business. Other changes in addition to improving in-store efficiency with technology included personalized promotions and a focus on growing online sales.

Increased store efficiency and other improvements might not address the problem of poor public perception in the wake of 2015's scandals. In a PYMNTS article, Mr. Mackey seemed exasperated with what he perceives as the company being repeatedly tried in the court of public opinion on issues such as the NYC pricing scandal and the viral flap over $6 asparagus water at a Whole Foods location.

But the chain may face bigger challenges than bad PR. The once untouchable position of Whole Foods in the natural foods space has been eaten away at by grocery competitors such as Kroger and other mainstream grocers who offer natural foods at a lower price point.