Can You Guess Which Grocery Store Could Best Whole Foods In Organic And Natural Sales Within Two Years?
Whole Foods has held the top spot in organic and natural food sales, but the simple truth is that within two years, a mainstream grocery store might outsell the upscale, organic reigning champion. With ever expanding shelves of organic and food overflowing into the normal grocery aisles, a “one-stop shopping” grocery store aims to be Whole Foods’ fiercest competitor.
Recent sales figures and an announcement by the CEO of an Ohio based chain of grocery stores indicates that consumers searching for GMO-free and organic food products may have to look no further than their neighborhood Kroger store for a cornucopia of organic foods.
Kroger’s Simple Truth line of organic and natural products, offered exclusively by Kroger, will be a billion dollar brand as of this year, according to CEO Rodney McMullan, who excitedly announced the product line’s sales are skyrocketing. Simple Truth was a good risk for Whole Foods’ new competitor, the CEO says, because it’s doing this well and was only introduced in 2012.
“When you think about a brand reaching that level in its second full year, not many companies can say that,” McMullan told Kroger’s major investors, according to the Cincinnati Business Courier. Kroger’s Simple Truth line gives consumers a choice as to the degree of natural and organic they would like to purchase. For example, consumers can get cage-free, natural eggs or they can pay a little bit of extra pocket change and opt for the cage-free organic eggs instead. Both products offer consumers food that is more like what they’d pick up from Whole Foods than what they’d find at their typical neighborhood grocery store.
Whole Foods’ unexpected competitor will likely see their natural and organic line double its already impressive sales within the next few years, according to Mike Donnelley, Kroger’s senior vice president of merchandising. Kroger’s COE agreed and called the Simple Truth line a “huge home run,” according to AltHealth Works. Even JP Morgan released a report that said Kroger could surpass Whole Foods in this niche within two years, that article explained.
Kroger operates over 1200 supermarket fuel centers, which are neighborhood grocery stores with gas stations in the parking lot. Kroger also operates over 2100 pharmacy supermarkets. The convenience factor may be why Kroger’s Simple Truth line is doing so well, according to the Motley Fool. Organic has hit the mainstream, consumer analysts say. Another surprising mainstream corporation considering adding organics is McDonald’s. Inquisitr reported on McDonald’s low quarterly earnings and the possibility that the Golden Arches might go out on a greener limb with organic options to avoid being sent out to pasture by questioning investors.
While Kroger is named Whole Foods’ biggest threat by Business Insider, AltHealth Works reminds farmers that they might want to consider planting some non-GMO seeds in order to take advantage of one of the fastest growing industries in the nation.
[Photo adapted from Kroger’s Facebook page]
