The Austin, Texas-based company reportedly is testing the price drops in its five Austin stores, and plans to offer more discounts and deals weekly.
“We are going to be more aggressive than we have ever been before,” co-chief executive officer John Mackey told the Austin American-Statesman. “We will have a lot more items under $1 … a lot more promotions, a lot more radically priced produce.”
The company plans to have low prices on select items every day, but also “significantly reduced” promotional prices in produce.
Reducing expenses and cost savings are making the price reductions possible, Mackey told the American-Statesman.
Whole Foods’ “Responsibly Grown” produce rating system also is set to launch Oct. 15. The rating system, according to the company, ranks produce according to sustainable farming practices like worker welfare, soil quality, pesticide practices with ratings of “good,” “better,” and “best.”
Whole Foods has come under scrutiny as it competes with Phoenix-based Sprouts Farmers Market. A recent study by Wells Fargo Securities found Whole Foods prices in produce 32% higher than Sprouts. The study, “Grocery: The Battle For Basket Share” surveyed more than 1,000 shoppers in Los Angeles, Houston, Phoenix, Denver, Dallas, Las Vegas, Salt Lake City and Albuquerque.