Walmart Plans to Make Organic Foods Cheaper

Organic Walmart isn’t really thought of as the one stop shop for organic or healthy food – but they are trying to change that.

Starting this month, the company aims to drive down the price of organic food nationwide in about 1,000 stores with its new in-house line of 100 or so products in exclusive partnership with Wild Oats.

“There will be no premium for the customer to purchase organic products,” said Jack Sinclair, executive vice president of grocery at Wal-Mart U.S. “They will be able to purchase organic at non-organic prices. We’re removing the premium associated with organic groceries,” adding that “customers have been asking for this.”

Organic products and kitchen stables such as olive oil will cost 25 percent less than their competitors, based on price comparisons of 26 national brands.

“It’s not just the Whole Foods of the world. They’re finding more and more organic foods at Safeway and Kroger, and they’re happy about that, because not everybody feels they have the resources to shop at a store like Whole Foods,” said Amy Sousa, a senior research analyst.

Walmart providing affordable organic products into affordable organics will force competitors like Whole Foods and Trader Joe’s to drop their prices if they want to stay in the game.

Wild Oats used to have it’s own grocery stores in the 1980s. Whole Foods acquired them in 1987 for $565 million. In 2009, the Federal Trade Commission forced Whole Foods to divest its holdings. Wild Oats CEO Tom Casey described the company’s exclusive Walmart partnership as “a movement,” adding: “We’re passing on scalable savings.”

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About DevonJ140
I am currently an Accounting Director living in New York City. I love reading and learning more about business, finance, tech, and current events.

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