REVIEW: Whole Foods/Wild Oats Merger

By now I’m sure you’ve heard that Whole Foods Market is buying out Wild Oats. They’re calling it a merger, which sounds like they’re holding hands and presenting a united front to the market. Really, though, it’s more like, “Hey, Wild Oats. We’ll give you $565 mil, and then you’re ours. How’s that sound?” It must have sounded pretty darn good.

This story is being covered everywhere: The New York Times, MSNBC, MarketWatch, BBC News, SmartMoney, MotherJones, and countless other media outlets are reporting the story. I’ve read a lot of these articles, and though it’s not an absolute conclusion, it seems like the prevailing consensus is that this merger will be good for business, and bad for consumers.

After thinking about it for a few days, I’ve decided that I don’t agree. To all of the customers who liked the perceived lower prices at Wild Oats, Henry’s, and all of the Wild Oats companies’ stores, I’d like to pose a question: Was the cheaper produce you were buying at Wild Oats organic? No? And did you know that Whole Foods offers conventional produce and grocery items alongside the organic ones? Have you ever compared prices between the conventional items at both stores, or do you just look at Whole Foods’ organic prices and assume that everything there is more expensive?

Okay, so that was more than one question. But the point I’m trying to make is that, yes, organic things typically cost more. And if Whole Foods is still going to offer their cheaper conventional fare, why do Wild Oats shoppers really care? Why does it matter which name the sign on the storefront bears, as long as they can still buy the produce they want at the prices they like?

I believe that it’s a perception problem. It’s like there’s this culturally accepted dogma that says, “Whole Foods, expensive. Wild Oats, same thing, less expensive.” But, IT’S NOT THE SAME THING. Organic is not the same thing as conventional. Don’t people who shop at Wild Oats (and Trader Joe’s, for that matter) every wonder WHY the prices are cheaper at those stores? Could it be that it has something to do with the QUALITY of the products they’re buying? For some reason it just seems easier to blame Whole Foods for being expensive than to examine your own consuming practices. Look into your grocery bag; chances are the price you paid reflects what’s in the bag.

That’s my challenge to Wild Oats shoppers who are disturbed by Whole Foods’ recent acquisition of their marketplaces. Look at what’s in your grocery bags, THEN look at your receipts. There’s a direct correlation there. And there’s good news for you: Whole Foods will still offer the conventional produce you’re buying at similar prices. They will also offer a broader range of goods, so your choices will expand, not shrink. They’ll sell what you want to buy, and they’ll do a hell of a better job of it than Wild Oats did.

I know I’ll get emails from people who disagree with me, or from people who think I’m being all preachy from up here on my soap box (ahem, DAD). And that’s fine. All of this is totally my opinion, and people are bound to disagree. Or agree. Or just generally not give a rat’s ass. All that’s fine too, because what’s really important is having the freedom to choose. Like you can at Whole Foods! See how I brought that around right there?

Anyway, regardless of where you shop, the most important choice you make is what your values are, and how you want to execute those values. It’s not the name printed on the grocery bag you’re carrying that matters; it’s what’s inside of it that counts.