Comments on: Whole Foods is Watching You!

By: oldtimer

oldtimer — Thu, 26 Mar 2009 13:08:56 +0000

We could only wish for the system you describe in monitoring our guests buying habits. Your first assumption is actually correct, they do simplify the tedious work of replacing shelf tags when prices change. They also offer some other efficiencies to us as well. Like, we can put certain items on sale, blink a little red light on the tag and who ever is hanging the sale signs can find the products much faster, another would be stocking the shelves. A new team member stocking the baking isle for instance would scan the UPC of the product that needs stocking and the tag where that product is located starts blinking therefore cutting the serach time for where the product needs to be stocked. A great training tool. And yes, they do allow price changes to made quickly either up or down.

By: Jon Ray

Jon Ray — Wed, 19 Dec 2007 19:28:30 +0000

@jrf – Thanks for the clarification! That’s a great technology you guys are installing.

By: jrf

jrf — Wed, 19 Dec 2007 18:11:30 +0000

I have enjoyed reading these comments. I work for the company who installed the Electronic Shelf Lables in Whole Foods Market. We have installed our system in many of their Southwest regeon stores and continue to do so.

Your experience was not an example of consumer stalking but merely a coincidence. They processed a batch of pricing changes at that moment you walked by. Electronic pricing allows them to change pricing with a drag and drop of the mouse.

As for johnmoore’s comments… he is slightly misguided We DO NOT use RFID technology. Also, WFM uses the price lables in ALL departments except produce and on “by weight” items.

By: Jon Ray

Jon Ray — Sun, 09 Sep 2007 01:26:55 +0000

@john – So, it sounds like I might have been completely off with my LCD displays being used to monitor buying habits theory. If what you say is true, I am. I was merely throwing it out as a theory for someone like you to shed some light on the truth. So, thank you for that. If you’ll put me into contact with someone over at Whole Foods, I’ll write a retraction with the proper story. Thanks!

By: johnmoore (from Brand Autopsy)

johnmoore (from Brand Autopsy) — Sat, 08 Sep 2007 23:03:16 +0000

Jon … think about it, the departments where WFM’s products have short expiry/freshness dates are in perishables, meats, seafood, dairy, and prepared foods. Nearly all of those departments do not use the LCD pricing display. These electronic signs are almost exclusively in the packaged goods section of the store. Most packaged goods have a long shelf-life.

COST SAVINGS is the biggest advantage to using these LCD pricing displays. It simply takes less labor time to change prices with the LCD displays.

As a former director of National Marketing for Whole Foods Market, I can attest to the company being too busy operating its stores than to mine customer data from these LCD pricing displays.

By: Jon Ray

Jon Ray — Sat, 08 Sep 2007 19:44:12 +0000

@paul – Yes, but every time you wipe, you know you’re saving the planet. :)

@john – I definitely agree with the readability issue and the LCDs seem like a great way for quick sale pricing, but I can’t imagine that Whole Foods isn’t taking advantage of this system in any other way. The store prides itself on giving you fresh, healthy food. Why wouldn’t they lower pricing to get things that have been on the shelves too long out of the store? I’ll do some more investigating on this. Thanks!

By: johnmoore (from Brand Autopsy)

johnmoore (from Brand Autopsy) — Sat, 08 Sep 2007 14:13:38 +0000

Jon … the smart thing about these LCD price tags is the RFID technology. Instead of tediously having to change price tags when items are on sale or when the price changes, all Whole Foods has to do is enter the price change on a computer and the LCD price displays will change.

The dumb thing about these LCD price tags is the poor readability. I have trouble reading the small LCD screen due to glare and the screen being flat on the shelf. To read the price tags, I need to bend down and then the black type on gray background still makes it hard to read. If the screen was tilted, then the glare would be reduced and readability increased.

I’ve talked with a few Whole Foods team members (employees) and while they like the LCD price tags, they say customers are having a hard time reading them.

I’m not sure Whole Foods is doing the flexible pricing dealio that you suggest. They could. But I doubt they are tracking and reacting to customer spending habits in the way you suggest.

By: paul merrill

paul merrill — Sat, 08 Sep 2007 13:56:17 +0000

I don’t think it’s as big-brother-ish as some people feel.

Whole Foods makes money and they are good at doing that. At the same time, they bring healthy food to us. And over-priced toilet paper.

By: Jon Ray

Jon Ray — Fri, 07 Sep 2007 19:00:08 +0000

Interesting point, Jeff. I, personally, have grown to be very comfortable with corporate entities tracking my spending habits. Amazon.com provides, in my opinion, one of the best shopping experiences your can have and it’s because they know every book I’ve purchased, clicked on or spent more than 30 seconds reading reviews about.

Does this make me uncomfortable? Well, if I thought that they were selling all of that information off to other vendors, I might be a little wary, but ultimately, I’d love to have more shopping experiences like Amazon.com gives me and I think Whole Foods is trying to step in that direction, not abandon their loyal customers by selling off data.

As for Apple (another company I love), I know there were people upset of the price drop in the iPhone. But, welcome to the world of technology, there’s always an early adopter tax to be the first guy on the block with something cool like the iPhone. I think Steve Jobs handled it perfectly, by writing a letter to iPhone owners and offering them a $100 rebate for anyone who bought the iPhone at the original rate. Steve’s just a good guy!

By: Mike Allan

Mike Allan — Fri, 07 Sep 2007 16:10:15 +0000

The only thing close to what you are describing I can think of here in Canada is gas prices. They go up at midnight for the morning rush, down from about 11 until 3 then back up again for the afternoon rush then down until midnight. Maybe not daily but close enough!