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Whole Foods CEO wants to open hundreds of smaller stores

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Whole Foods CEO wants to open hundreds of smaller stores

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884 segments

0:00

Within that 10-year [music] vision for

0:01

Whole Foods, Jason, how many of these

0:03

smaller stores do you think you can

0:04

open?

0:05

>> I mean, I I see hundreds.

0:07

>> But, what do those [music] price gaps

0:08

look like?

0:08

>> Our goal has been for like for like

0:10

products, we can be right there with

0:12

competition.

0:12

>> Is that an example of, you know, the

0:14

Amazon magic [music] finally coming into

0:16

Whole Foods?

0:16

>> There is a lot of magic that situates uh

0:19

behind the scenes, and the Dash Carts is

0:21

a great example of what customers can

0:22

see firsthand. You know, another area

0:25

that I'm excited about, not just in

0:26

[music] Whole Foods, but in our broader

0:27

grocery shopping experience, is our

0:29

Alexa for shopping.

0:30

>> When do meat prices

0:32

>> [music]

0:32

>> start to come down to more reasonable

0:33

levels? The past year is busting my

0:36

budget.

0:41

All right, welcome to a new episode of

0:42

Power Players, and I am so excited to

0:44

reconnect with my next guest because he

0:46

was one of the first people I had on my

0:48

podcast when we launched this, I guess,

0:50

eons ago. I don't know if that's how you

0:52

would say it. Whole Foods CEO Jason

0:53

Bezo. Jason, good to see you, man. It's

0:55

been a while. You still look great.

0:56

What's new at Whole Foods?

0:57

>> Yeah, well, we got uh a lot going on.

1:00

Um obviously, uh customers continue to

1:04

uh look for value, selection, and uh

1:08

transparency into their products, and

1:11

that's the area that we're really

1:12

doubling down on. Uh we're really

1:14

excited about the growth um that we're

1:16

also doing right now and expanding to

1:18

new stores. Uh we've got uh a newer

1:21

format, uh Daily Shop, uh which we're

1:23

excited about bringing to more

1:24

customers, and uh you know, bringing

1:27

great trend and innovation within the

1:29

food space, and uh excited about how a

1:31

lot of that will come together for

1:33

customers as well.

1:34

>> No pun intended, but when you first

1:36

started, uh that first 6 months, though

1:39

what did you plant in terms of ideas and

1:41

innovation that first those first 6

1:43

months that are now

1:45

finally hitting today? And I told you

1:47

before you even got on here,

1:49

Whole Foods got a shout-out by Amazon

1:51

CEO Andy Jassy uh on the earnings call.

1:53

Whole Foods is doing really good. The

1:55

sales are outperforming many competitors

1:57

in major markets. Like, what is starting

1:58

to click for the company?

2:00

>> Yeah, so

2:01

a couple things. One, you know, when I

2:02

think about my my first 6 months, a big

2:05

part of it was the Yeah, I'll say the 12

2:07

months that led up to it. So, I had, you

2:09

know, the fortunate opportunity to to

2:12

know that I was going to be stepping

2:13

into the role, which not many CEOs have

2:15

the opportunity to to have that time to,

2:18

you know, process and be able to prepare

2:20

like I did and having the opportunity to

2:22

work side by side with John Mackey over

2:24

those 11 months was also a great

2:27

learning experience at the same time.

2:29

You know, a big thing that I did was

2:30

something we called the whole

2:31

conversations tour where I went out and

2:34

visited with each one of our regions and

2:37

connected with suppliers, customers,

2:40

community members, all of our

2:41

stakeholders to understand what are the

2:43

most important things that we need to be

2:44

focused on and what are greatest

2:46

opportunities as as a company. And that

2:48

led us to developing something

2:51

that we referred to as our our our

2:53

10-year vision, which is growing with

2:54

purpose. And you know, there we've

2:57

outlined some of our biggest areas

2:59

within the within the company as far as

3:01

opportunity goes.

3:02

You know, our goal is to create the very

3:04

best customer experience. We're going to

3:06

invest in team member growth and and

3:08

happiness. We want to be able to expand

3:11

our reach and our impact. And to do

3:13

that, we also have to deliver

3:14

exceptional business performance. So, I

3:16

think a big part was laying out a clear

3:18

strategy as far as where we're headed

3:20

over the course of the next 10 years.

3:22

And there are a couple areas we really

3:23

wanted to double down on. One was

3:26

re-accelerating growth. We've been in

3:28

kind of a space where we'd really pulled

3:30

back on the number of new stores that we

3:32

were opening.

3:33

A big part of it was making sure we've

3:34

got all the right foundations in place.

3:36

And I wanted to help us figure out how

3:38

do we sort of re-accelerate that? And

3:40

we're doing that a number of ways. One,

3:42

the traditional stores that, you know,

3:43

our customers have been shopping at for

3:45

decades. We also want to try out new new

3:47

formats as well. And Daily Shop was one

3:50

of those um, bets uh, where we opened

3:53

our very first store,

3:55

um, in Manhattan, not too, not too far

3:56

from you. And it's been really exciting

3:59

to see how customers sort of engage in

4:02

that space. And

4:03

um, one of the most important parts of

4:05

supporting, uh, the growth fuel was, is,

4:08

is making sure that we

4:10

listen to our customers. And one of the

4:11

things we wanted to be able to do was

4:13

continue to bring more value to our

4:16

customers on the, the Whole Foods side.

4:18

And, you know, for, for me, this was

4:20

about not only investing into, uh, our

4:23

regular prices for customers, where

4:25

we've done a lot of focus on that. It's

4:26

about expanding, uh, more opportunities

4:29

in opening price point. And we do a lot

4:30

of that through our 365, uh, brand. And,

4:34

uh, at the same time, finding ways, um,

4:37

to bring customers into stores. And

4:39

we've done that, you know, by doubling

4:41

the number of promotions that we've made

4:43

available to our customers. Um, we're

4:45

also really focused on, you know,

4:47

continuing, as I mentioned earlier, you

4:49

know, supporting the trends that we

4:51

believe are resonating with customers

4:53

within the food space. And in some

4:55

cases, you know, those are, you know,

4:57

trends that you're going to see around,

4:58

you know, different things like in,

5:00

ingredients or type of food, whether

5:02

it's the protein and fiber trend that's

5:04

going on right now, or, or creatine,

5:06

where the, you know, the uses have

5:08

expanded for

5:09

what customers are looking from, you

5:12

know, looking at mental health and sleep

5:14

and, and clarity to, you know,

5:16

supporting, supporting muscle growth at

5:18

the same time. And, you know, for, for

5:20

me, this is also about how do we work

5:23

more broadly across Amazon. And, you

5:26

know, with my responsibilities and also

5:27

supporting Amazon Grocery Worldwide, how

5:30

do we bring the best of that together to

5:33

support great customer experiences. And

5:35

whether that's, you know, helping

5:37

support, um, you know, our customers

5:39

make easy returns in our Whole Foods

5:41

Market stores, to bringing some of our

5:43

very best products within Whole Foods

5:44

and having them made available in our

5:46

Amazon same-day grocery delivery. Uh

5:49

these are all ways by which we're

5:51

helping support our customers across all

5:53

different spectrums and channels by

5:55

which they shop.

5:57

>> That new store that you just mentioned,

5:59

the what the deli shop, how how is that

6:02

how is that store different than the

6:05

suburban one that I go to probably or I

6:08

probably spend half of my waking life at

6:10

every week buying things, especially

6:11

creatine. Jason, I want so much

6:13

creatine. Uh you might be concerned with

6:15

my health. I mean, it's really absurd

6:16

what I take every day, but we'll take it

6:17

offline.

6:19

>> Yes. You you and many many many other

6:21

customers. It's it's funny because, you

6:23

know, that was a product, you know, we

6:24

were

6:26

uh we'd helped support in the natural

6:27

organic space like in the '80s and it's

6:29

like, you know, you know, totally made

6:30

this, you know, complete return and for

6:32

for many uses as well. But uh

6:35

uh as it relates to the daily shop, you

6:37

know, a lot of excitement we have right

6:38

now. We've got um

6:40

uh 12 stores. Uh six of them are in

6:43

London.

6:44

Six here in the US, most in in

6:46

Manhattan. And you're asking sort of the

6:48

difference of, you know, how this

6:50

concept shows up versus others. The

6:51

store you shop at is about 40 45,000 um

6:55

square feet. We've got full-service

6:57

offerings basically spread across the

6:58

perimeter of meat, seafood, specialty

7:01

cheese, prepared foods.

7:03

And what we've done is taken the very

7:04

best of Whole Foods and condensed it

7:07

down into what is closer to a 9 to

7:09

12,000 square foot um experience. And

7:12

our goal is to continue to support all

7:14

different missions that our customers

7:15

have in shopping grocery, but uh by

7:18

having a smaller footprint, we can be

7:20

closer to where our customers are at. Um

7:22

as you might imagine, you know,

7:23

especially in Manhattan, the ability to

7:25

open a dozen more 40,000 square foot

7:28

stores is a very complicated process and

7:30

would take, you know, years and years

7:32

and it probably a decade when we look at

7:34

how complicated some of those projects

7:36

can get. And the reality is that in this

7:38

smaller footprint, we can move much

7:40

quicker and help serve our customers'

7:41

needs. And this is really allowing

7:43

customers to do quick grab and go

7:47

you know stop this stock ups

7:49

a lot of this is really geared towards

7:52

how our customers are shopping today

7:54

which is more frequently. They're not

7:56

doing one large basket for a week or

7:59

two. They're shopping on a regular

8:01

basis. The average customer right now

8:03

is shopping for food three to four times

8:06

a week and this new concept is really

8:08

helping support that. So we curated the

8:10

very best. We're helping present it in a

8:12

way that makes it very easy for

8:13

customers to shop everything from meals

8:16

to

8:17

to

8:18

meals, pantry staples, grab and go

8:21

options and you know our our goal here

8:24

is to like listen to what our customers

8:25

are telling us and we've iterate

8:27

iterated on this format, you know,

8:29

not everyone is identical, you know, the

8:31

neighborhoods that we're dropping these

8:33

stores in they differ and so we're

8:35

helping ensure that we are matching what

8:37

our customers are looking for in the

8:39

communities that they're serving as well

8:41

which is something we've probably done

8:43

in you know all of our stores.

8:45

>> Within that 10-year vision for Whole

8:46

Foods, Jason, how many of these smaller

8:48

stores do you think you can open?

8:51

>> I mean I I see hundreds, you know, quite

8:53

frankly. You know, this will be an

8:54

opportunity where you know, not only do

8:56

we see this showing up in many

8:59

dense urban areas across the country but

9:02

I think this concept or you know,

9:04

something that we iterate off of it will

9:06

allow us to get to places that maybe we

9:08

wouldn't be able to put you know, a

9:09

full-sized Whole Foods in. I also think

9:11

about things like college campuses.

9:13

You've got you have dense areas there

9:15

where you know, again, we could serve a

9:17

population where it's really hard to

9:19

drop a 40,000 square foot Whole Foods

9:21

Market store.

9:23

>> There you have really sharpened you

9:25

focused and we when we originally spoke,

9:27

I know you're very focused on sharpening

9:29

price points at Whole Foods. And now the

9:31

more research I've been able to digest

9:34

again, no pun intended. You have closed

9:36

the gap with that 365 uh private label

9:39

brand versus traditional grocers like a

9:41

Kroger, uh like a Walmart. I won't even

9:44

put Target in this discussion cuz they

9:45

don't even deserve to be in it. But, uh

9:47

what do those price gaps look like?

9:50

>> Yeah. You know, for for us, you know,

9:52

our goal has been we want to make sure

9:54

for like-for-like products we can be

9:55

right there where we stand with

9:57

competition. You know, one of the things

9:58

I'm proud of is the quality standards we

10:00

have are are higher than a lot of the

10:02

groceries that you just mentioned. Um

10:05

you know, whether it's our over 300

10:06

banned ingredients that we have across

10:08

our food products to our animal welfare

10:10

standards, our sustainable seafood

10:12

sourcing standards, our pollinator

10:13

policies. And so, what we want to do is

10:16

bring value for customers, especially

10:17

for those open price points where

10:19

they're seeing basically roughly the

10:21

same price and at the same standpoint

10:23

they're getting a higher quality

10:25

product. And with us, you also have the

10:27

ability to um have an experience, you

10:30

know, whether it is, you know, talking

10:33

to one of our butchers and helping

10:35

select the exact cut of meat that you

10:37

you're looking to have, or talking to

10:38

our fishmonger who can help, you know,

10:40

choose the selection of oysters that

10:42

you're going to buy, or one of our

10:44

certified cheese professionals who's

10:45

going to help you make this amazing

10:47

charcuterie board. Our goal is to help,

10:49

you know, bridge the opportunity for

10:51

customers to do a quick shop whether

10:54

in store, online, or pick up. And for

10:56

those customers who want that expertise

10:59

still have that full service available

11:01

when they're shopping in stores.

11:03

>> In your latest round of store walks, I

11:05

mean I I know you pop into Whole Foods

11:07

and you grab your lunch there. I mean

11:08

you're very involved. I mean, of course,

11:10

I mean you're leading the company. What

11:12

have you

11:13

What have you found that has surprised

11:14

you recently inside of a Whole Foods?

11:17

>> Well, one is, you know, uh how customers

11:19

are shopping right now. Um

11:22

you

11:23

I constantly am observing like, you

11:25

know,

11:26

uh customers that are going in and out.

11:28

You know, yesterday I was in our West

11:30

Lake store in downtown Seattle. And

11:34

we've got a mixture of what are folks

11:36

who are, you know, working in the area,

11:38

living, and then tourists. And just

11:40

watching sort of the different

11:41

behaviors. And when I look at, you know,

11:45

what customers are looking for right now

11:46

is to help save time. So, the number of

11:48

items that are sort of in a pre-pack,

11:51

ready-to-eat, whether it is cut fruit,

11:54

whether, you know, in the seafood

11:56

department, it's the value-added where

11:58

we've already marinated it, it's ready

11:59

to go, to prepared foods. One of the

12:02

hottest trends trends right now are

12:04

family meals. And, you know, this is an

12:06

area where it's helping customers

12:09

save, you know, time where they can

12:11

basically, you know, choose their

12:13

favorite mains and proteins to their

12:16

sides, and it's ready to cook and

12:18

available for their family.

12:20

I saw a customer yesterday who had six

12:23

of them in their shopping cart. And,

12:27

you know, and they they were I'm sure

12:29

going to be doing basically, either, you

12:30

know, feeding their I I my guess is it

12:32

was not for feeding the family, it was

12:33

probably for meal prep, which is one of

12:35

the other trends that we're seeing is

12:36

folks are using

12:37

these family meals and then, you know,

12:39

stocking up and basically breaking up

12:42

all the different components and taking

12:44

what's a meal for four and turning it

12:46

into, you know, you know, meals, you

12:49

know,

12:50

basically, you know, eight plus meals

12:52

for an individual for the entire week.

12:55

>> It's like you have just brought my whole

12:57

shopping experience to life.

13:00

>> [laughter]

13:00

>> You're taking through these things I

13:01

have noticed and I'm I still I mean, I

13:03

pay attention to this stuff.

13:05

I've seen more prepared foods inside of

13:07

Whole Foods, more marinated meats and

13:10

vegetables and fruits. As you do that,

13:12

as you lean into this trend, how does

13:14

that change

13:16

the operations of a Whole Foods? Even

13:18

and even in terms of a store layout.

13:21

>> Yeah, I I think one of the things that

13:22

we have to adjust is based upon what

13:24

customers are looking for, how do we

13:26

evolve sort of the dedicated space? If

13:29

you, you know, rewind back a few years

13:31

ago and you look at the fresh pack space

13:33

within prepared foods, it was a pretty

13:35

small offering that we had. And the

13:37

pandemic and what has become, I'd say,

13:39

the trend of customers looking for

13:42

food that is ready to consume. So

13:45

they're not having to spend time

13:46

preparing it or, you know, we've started

13:48

some of the steps for you. So, you know,

13:50

customers grabbing, you know, I see

13:52

constantly grilled chicken, but you'll

13:54

see that they've got pasta and pasta

13:56

sauce in their carts as well. And so

13:58

they're looking for the shortcuts and

13:59

hacks to make it easier. And so our job

14:01

is to help, you know, bring that

14:03

experience. In some cases it's going to

14:04

be reallocating space. And, you know, if

14:07

you look at, you know, some of our, you

14:09

know,

14:10

steak seafood as an example, what might

14:12

be sort of some of the pre-prepared

14:14

options might be bigger and larger in

14:16

some stores than others based upon what

14:18

those what those specific customers are

14:20

are looking for. But I think as we look

14:22

as we go forward, we'll continue to

14:24

iterate and evolve what is the offering

14:27

in the layout that best meets our

14:29

customers' needs.

14:30

>> Down underneath our office here at Yahoo

14:33

Finance New York City, there's a

14:34

competitor. I just have to mention them.

14:36

You don't have to mention them by name.

14:37

It's Wegmans. So, 3 weeks ago I walked

14:39

in,

14:40

Jason, and they had where they had

14:42

humans

14:43

checking people out. They added about at

14:45

least maybe 10 to 15 self-service

14:48

kiosks. And I only saw three humans. Is

14:51

that a look

14:53

Are we still You said are we still a

14:55

believers in self-checkout? And And does

14:58

it really save a lot of time? Because

15:00

I've heard I've seen some folks get away

15:01

from it, others lean into it.

15:05

>> Yeah. We currently offer both and I

15:08

think a big part of it is offering

15:09

choice for customers. We've got some

15:11

customers who prefer that as a form of

15:14

checkout. And for us it's been very

15:16

successful in bringing in. I'm just

15:18

mentioning that this this store in West

15:19

Lake. I think we've got, you know, 20,

15:23

25 self-checkouts. It's a It's a big

15:26

lunch rush spot. And so, it's It's from

15:28

an operational perspective, it really

15:29

helps keep our stores in a way that we

15:31

can best serve our customers the best

15:33

way possible. And then you've got

15:34

customers who prefer a cashier

15:36

experience. So, they want to be able to

15:38

chat and talk to their cashier. They

15:40

want someone else helping bag all their

15:41

groceries. And I think for a lot of

15:43

customers who are doing a fuller, bigger

15:44

basket shop, that might be an

15:47

alternative of what they're looking for.

15:49

Something that I'm excited about is some

15:51

of the work that we've been doing right

15:52

now with our Dash Carts.

15:54

You know, earlier this year we unveiled

15:56

a brand new version of our Amazon Dash

15:59

Cart. It is 25% lighter than our

16:02

previous version. It's got 40% more

16:05

capacity. And it's, you know, really

16:07

aimed to help, you know, serve sort of

16:09

family-size shopping trips. And we've

16:12

gotten tremendously positive feedback on

16:13

customers because they from customers

16:15

because they can actually

16:17

shop, checkout, and bag their groceries

16:20

all at once.

16:20

>> I've never seen that. I've never seen

16:22

one of those.

16:24

>> It's not in your store yet, but this

16:25

year we're putting this in dozens of

16:27

Whole Foods Market stores, and we're

16:28

looking to continue to expand.

16:31

It's had some tremendously positive

16:32

results. We've had over nine out of 10

16:35

customers respond they've had a

16:36

satisfied experience with it. And once

16:38

you start using it, you just continue to

16:41

use it because it just It really

16:42

simplifies

16:44

the shopping experience. You don't wait

16:45

any lines. And I think what customers,

16:48

you know, for me actually talking to So,

16:50

everyone, when it's available in my

16:51

stores, I've had fun shopping myself is

16:53

you know, your ability to, you know,

16:55

basically shop, bag, and checkout. And

16:58

so, customers were wanting to put items

17:00

together that they want together, you

17:02

know, throughout the store shop. You can

17:04

have your bags all situated in the cart

17:06

ready as you're going around the store.

17:08

You weigh all your produce items, so

17:10

there's no additional step that's

17:12

involved other than just walking through

17:13

the Dash Cart lane as you walk out of

17:15

the store.

17:15

>> Is

17:16

You need to bring these to massive peak

17:18

in New York. That's what store just like

17:20

cut it out. Please I will test one of

17:22

these.

17:22

>> I'll I'll I'll talk to the team about

17:24

that.

17:24

>> Actually just ship me one of these

17:25

carts. I will take it to the store, use

17:27

it myself.

17:28

Um but is that a is that an example of

17:31

you know, the Amazon magic finally

17:34

coming into Whole Foods. And I told you

17:35

before we got on here, I miss the little

17:37

palm thing where I scanned out. You

17:39

know, it's no longer Whole Foods store.

17:40

I miss doing that. And I I I walk into

17:43

Whole Foods store it still feels like

17:45

Whole Foods.

17:45

Uh not to say there's not technology in

17:47

there or behind the scenes. Of course

17:49

there is. But is this cart more of a

17:51

representation of what's to come? And

17:53

that Amazon magic finally getting more

17:55

into Whole Foods stores?

17:57

>> Yeah. Well, as you kind of mentioned,

17:58

there is a lot of magic that situates

18:01

behind the scenes. All the

18:03

the efforts that we're doing to help

18:05

support especially the online shopping

18:07

experience. The work

18:09

that we're able to do to help uh improve

18:12

the selection in our stores, which we

18:14

can do on a much more

18:16

the technology we've been putting in

18:18

place

18:19

on the Amazon side as well as improving

18:21

our in-stock positions and things like

18:23

that. So there's a lot of things behind

18:24

the scene

18:25

that I've been really excited about for

18:26

us to put into place. And the Dash Carts

18:29

is a great example of what customers can

18:30

see sort of first hand. You know,

18:32

another area that I'm excited about not

18:34

just in Whole Foods, but in our broader

18:35

grocery shopping experience is our Alexa

18:37

for shopping.

18:39

Our AI shopping assistant. I have a lot

18:41

of fun with that myself.

18:43

You should You should give it a try. Um

18:45

>> I have Alexa. I have Alexa Plus. I've

18:46

never even used that before.

18:48

>> Yeah, so in the Amazon app you can

18:51

actually go down into the right hand

18:53

corner. That's Alexa for shopping. You

18:55

can utilize it in so many different

18:57

ways. I love taking pictures of products

19:00

and getting recommendations for what to

19:02

pair things with. I was just using it

19:04

the other day for building out a

19:06

charcuterie

19:07

board myself. And

19:09

what's also great is understanding what

19:11

are some of the other complementary

19:13

items or things that you might want to

19:14

think about as you're preparing a meal.

19:16

It's also really fun um with leftovers

19:18

to take pictures of the various

19:19

leftovers you have and say, "Hey, what

19:21

can I make out of this?" Um and

19:23

inherently it knows like a lot of the

19:25

other items that I've that I've

19:26

purchased, whether I've you know

19:27

purchased them at Whole Foods or I've

19:29

used our sub same-day grocery item uh

19:31

delivery option. And so, it's another

19:34

example of how to bring sort of that

19:35

magic um into the experience for

19:37

customers as well.

19:39

>> And then Amazon, are you also leading

19:40

grocery or uh

19:42

>> Yes, yes. Correct. So, uh as of last

19:45

January, I now lead our worldwide

19:47

grocery stores business as well.

19:49

>> That's why I I knew it was been a while

19:51

since we uh since we spoke at least uh

19:53

on the podcast form. Um

19:55

when I go to uh when I go to Amazon and

19:57

I order stuff, I mean I do this every

19:59

pretty much every day, I

20:02

I'm not necessarily prompted to buy

20:04

something from Whole Foods. When when do

20:05

you see that that changing? Like you

20:07

have me on the site, I'm buying

20:10

sneakers, I'm buying cream whatever it

20:12

is.

20:13

How I just I still feel though Whole

20:16

Foods is a separate experience online.

20:19

>> Yeah. Well, first and foremost, our goal

20:22

here is to make our overall grocery

20:24

shopping um

20:26

easier, faster, and more affordable for

20:28

all of our customers. And one of the

20:30

things I'm I'm really excited about is

20:31

if you go to the sub nav and just click

20:34

groceries um right now, we're

20:37

immediately going to showcase all the

20:39

very best uh perishable, non-perishable

20:41

grocery offerings that we have across

20:43

Amazon for same-day delivery. And what

20:45

you're going to find is the very best of

20:47

Whole Foods Market is already built in

20:49

into that experience from produce, meat.

20:52

You're going to see all your your

20:53

favorite 365 items um all within that

20:56

experience. And this has been one of the

20:58

areas that we've been putting a lot of

21:00

effort around and how do we make this

21:01

really easy and seamless for our

21:03

customers. You can now shop perishables

21:05

like you can buy anything else uh from

21:08

Amazon, and you can do that with one

21:09

single order, uh which we think is going

21:11

to really help make this much more

21:13

seamless for our customers.

21:16

Um our goal here is to make sure that

21:17

whatever our customers are looking for

21:18

across the grocery spectrum, we can make

21:20

sure that we've got the selection

21:22

they're looking for, the convenience,

21:24

and the price. And that's one of the

21:25

things I'm really proud about as Amazon

21:27

is we've continued to help build trust

21:30

uh with our customers on low prices

21:32

because we know it matters. It's an area

21:34

that we continue to invest in both uh

21:36

lowering the prices around our our

21:39

grocery items across all of our

21:40

different offerings. And again,

21:42

something I'm really proud of is, you

21:43

know, we've been named the lowest price

21:45

US retailer every year since 2017. We

21:48

averaged uh 14% um

21:51

lower prices than uh uh all major US

21:54

retailers um uh back back last year in

21:57

2025. And at the same time, we've, you

22:01

know, provided more than $2 billion

22:03

of Prime number savings on fresh

22:05

groceries and household essentials um

22:08

last year, and we do that across

22:09

amazon.com, Whole Foods Market, and

22:12

Amazon Fresh. And so, our goal is really

22:15

to help serve that broad spectrum, and

22:17

Whole Foods is one component of that

22:19

where you've got sort of a stand-alone

22:21

shopping experience, but we've taken

22:23

that very best of, and that's part of

22:25

the same-day grocery experience I was

22:27

just explaining.

22:28

>> Why do you think

22:30

Whole Foods still gets lumped in with

22:32

this this whole paycheck

22:34

uh moniker tagline? I I could I I I

22:37

mean, I don't not tracking this on a

22:39

spreadsheet, Jason, but I know your

22:41

prices are competitive to other

22:43

retailer. Can you ever shed that?

22:46

>> Well, I think we have. Um you're the

22:48

you're the first person to bring it up

22:49

to me in, yeah, you know, a very long

22:51

time at this point. And a lot of the

22:54

folks who do, I sort of challenge them.

22:56

I say, "Hey, I want you to go down and

22:58

go to the store or do an honest

23:00

comparison of the like-for-like items,

23:03

and tell me what you see. And I had a

23:05

retail analyst who really challenged me

23:07

uh

23:08

about 18 months ago or so and um

23:11

you know, he was trying to point out

23:12

where he thought things were a lot

23:13

better and came back afterwards and was

23:14

like, "Hey, I you know, I might not have

23:16

believed you exactly, but I did I was

23:18

able to see it for myself." And when you

23:21

layer in the promotional side of it, and

23:23

this is where the value really rings for

23:25

customers. You know, if you are a Prime

23:27

member getting that extra 10% off sale

23:30

items. If you, you know, love oysters,

23:33

show up on Friday. The 10% off sale

23:35

items are there every Friday. You're not

23:36

going to find you're not going to find a

23:37

better deal in that space across the

23:39

entire market. And by the way, the best

23:40

oysters you're going to find, better

23:42

than you're going to find in a lot of

23:43

restaurants at the same time. And you're

23:44

going to be talking to one of our

23:46

fishmongers, which is part of apprentice

23:48

programs that we have across

23:53

all of our different teams. We're

23:54

training up specialized skills for our

23:56

team members so we can provide the very

23:58

best service uh and experience for

24:01

customers.

24:02

>> Lastly, Jason, quick around the horn for

24:04

you. Uh more from a consumer standpoint.

24:06

So, I'm going to take you inside of my

24:07

my shopping trip to Whole Foods. The

24:09

meat section, let's start there. When do

24:11

meat prices start to come down to more

24:14

reasonable levels? The past year is

24:16

busting my budget.

24:20

>> Yeah, well, this is an area that we are

24:21

focused on with with suppliers. You

24:23

know, there's some macro challenges at

24:25

play here that a lot of us aren't in

24:27

control of. One of the things that we

24:28

really lean into is making sure that we

24:30

are absorbing as much of the cost we can

24:33

ourselves before passing on to the

24:34

customers.

24:35

Um hopefully you noticed um as you go to

24:37

the meat case, we have some great value

24:39

every single week in promotion. So, for

24:41

those customers

24:42

um you know, we have options as far as

24:44

like, you know, what you can you can

24:46

look at as far as, you know, better

24:48

deals um on some of those promotion

24:51

items. And again, an additional 10% off

24:53

if you are a Prime member for those.

24:56

Um this is something that we're also

24:58

looking alternative sourcing

25:00

to help bring additional options

25:03

for customers as well and I think that's

25:04

also going to

25:06

help relieve some of the you know stress

25:08

that exists within this particular

25:10

space. But this is one area that we do

25:12

have some you know acute challenges in

25:15

on the pricing side.

25:16

>> Uh

25:17

I am a big fan of the prepared salad

25:21

section, the salad bars I like to call

25:23

them. I'm thinking back to my days as a

25:24

kid going to Sizzler. So I'd walk in

25:26

there and I've noticed a few

25:29

fewer choices in there. Um,

25:31

how do you decide what goes in and what

25:34

comes out of that section?

25:38

>> Yeah, a lot of that is based upon you

25:40

know our customers sort of telling us

25:41

what they are looking for. You know, we

25:44

now have you know we talked a little bit

25:46

about some of the magical technology. We

25:48

have abilities now where you know we

25:50

look at what product goes out on our

25:52

salad bars and hot bars. You know, we

25:55

understand what's been eaten, what

25:56

hasn't and we can understand that at a

25:58

local store level and so making those

26:01

decisions that we don't want to our our

26:03

goal here is to avoid shrink. We do not

26:05

want food waste. That is something

26:07

that's really important related to our

26:09

core values and so we want to be

26:10

producing the product that our customers

26:12

are looking for and it's also why you'll

26:13

see there's different offerings that

26:15

will be at different stores. And so a

26:17

lot of it quite frankly is is driven off

26:19

of customer demand. I think the other

26:21

part of it is is what customers are

26:23

looking for as far as ready to eat. So

26:25

we've got a lot more customers now that

26:26

have gravitated towards the pre-packaged

26:29

selection I was mentioning earlier

26:31

that's taking up a larger portion of our

26:33

prepared foods floor space these days.

26:36

And I mentioned a little bit earlier the

26:37

family meals as well. We also offer

26:40

single meals as well. So customers who

26:43

are choosing to go pick a protein and

26:44

two sides versus deciding to use the hot

26:47

bar and salad bar. And some of the great

26:49

value that we're bringing through the

26:51

the family and individual meals program,

26:54

I think is gravitating customers towards

26:55

those options as well.

26:57

>> Well, quick plug, if you could bring

26:58

back the garlic kale salad, it was

27:00

really good and I can't find anymore.

27:02

And then last but not least, Jason.

27:04

>> I'll pass on the feedback. I I had it

27:05

yesterday for lunch, so it was in the

27:06

store.

27:07

>> Okay, so thank you. Bring it back to

27:08

Massapequa.

27:08

>> I'm a big fan of [laughter] that one as

27:10

well.

27:10

>> It's very good.

27:11

Lastly, cuz I love tracking these

27:13

things,

27:14

how are you a different and better

27:16

leader compared to when I last talked to

27:18

you, I think about 2 years ago?

27:21

>> Yeah. Well, I think for me,

27:24

you know, one of the things that is is

27:25

so important is that I'm connected to

27:27

all of our different

27:29

stakeholders. And for me, making sure

27:32

I'm I'm hearing and understanding what

27:34

are the anecdotes and what is the the

27:36

feeling that our customers have. I'm

27:38

connected to our team member base,

27:40

whether it's, you know, visiting,

27:42

you know, Whole Foods sites or our

27:45

Amazon same-day grocery facilities and

27:48

and grocery delivery facilities to

27:51

connecting with with our suppliers. And

27:54

I think making sure that I spend more

27:57

time listening than talking is a really

27:59

important piece, and it's something that

28:01

I've learned over time.

28:03

I like to talk, so and I like to share

28:06

and I get excited about things, but

28:08

making sure that I'm I'm listening and

28:09

understanding the needs of all of our

28:11

different stakeholders.

28:13

I'd say one of the other things is, you

28:15

know, in my expanded role now, being

28:17

able to truly solve needs for all

28:20

customers across every single spectrum

28:23

of our grocery offering. One, I get

28:25

excited about making things easier and

28:27

better for customers, but it's helped me

28:29

open up opportunities by which I can

28:31

have teams that haven't worked together

28:33

as much collaborate, so we can make sure

28:35

that we are focused on what is very best

28:37

for our customer, whether you are

28:38

shopping our same-day offering within

28:41

Amazon to Whole Foods Market to

28:43

everything in between. And you know, for

28:46

me, that's been,

28:47

you know, I think a really exciting

28:49

thing to be able to help take on, but

28:51

it's allowed me to be a better leader

28:53

and help create that that connective

28:55

tissue to be focused on the very best

28:57

growth grocery offerings

28:59

that Amazon can bring to all of our

29:01

customers. And not just here in the US,

29:03

but worldwide as well.

29:05

>> Good to see you again, Jason. Good to

29:06

see all those stuff you getting done at

29:07

Whole Foods. I really always enjoyed

29:09

talking with you. I will chat you soon,

29:11

my friend.

29:12

>> Yeah, great seeing you, Brian. Take

29:13

care.

29:14

>> All right, that's it for the latest

29:15

episode of Power Players.

Interactive Summary

In this episode of Power Players, Whole Foods Market CEO Jason Buechel discusses the company's 10-year vision for growth, the success of the new 'Daily Shop' format, and how the company is leveraging technology—such as Amazon Dash Carts and Alexa for shopping—to enhance the customer experience. Buechel also addresses competitive pricing strategies, consumer trends like the rise in demand for prepared foods and meal prep options, and his expanded role leading Amazon's global grocery business.

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