Whole Foods isn't a 'whole paycheck' anymore, its cofounder says. Here's what I found buying groceries.

Alex BitterJul 3, 2024, 23:01 IST

Unlike in some states, the bag didn't cost extra.Alex Bitter/BI

Whole Foods co-founder John Mackey says the grocery chain isn't so expensive anymore.
He credits Amazon and Jeff Bezos for making changes to Whole Foods over the last several years.

Whole Foods has long had a reputation as a pricey place to buy groceries.

No more, according to cofounder John Mackey.

Since Amazon acquired the grocery chain in 2017, it has cut prices several times. The reductions appeared to take aim at Whole Foods' higher-than-average prices — something that had long led critics to refer to the chain as "Whole Paycheck."

"Amazon let us drop our prices four times," Mackey said in an interview last month with Fortune. "I hardly ever hear the 'whole paycheck' narrative any longer—that's due to Amazon."

Mackey said former Amazon CEO Jeff Bezos deserves credit for the price cuts. He called Bezos "a genius," saying he believed in a long-term strategy to make Whole Foods more competitive.

Seven years after the acquisition, shoppers can find evidence that Whole Foods is trying to appear more budget-friendly. Shelves at many stores are full of yellow tags pointing to discounted items and signs on endcaps that read "Sale."

And this year, Whole Foods has cut prices on more items, such as oysters and rotisserie chicken, CEO Jason Buechel recently told Fortune.

To see if Whole Foods has truly shed its expensive reputation, I visited one of the supermarket's stores in Fairfax, Virginia — a suburb of Washington, DC.

I then compared the prices I found there with those at a nearby Safeway, a middle-market grocery chain owned by Albertsons.

I put a couple of conditions on my shopping trips. Since I was focused on affordability, I looked mostly at store-brand products. I also used loyalty programs to get discounts at both stores — including Amazon Prime at Whole Foods.

And while I compared prices on some of the most commonly purchased grocery items, like milk, I also decided to shop for ingredients for a specific dinner recipe — spaghetti with a side of green beans.

Here's what I found.

I started my comparison by going to this Whole Foods Market store in Fairfax, Virginia.

The entrance to the Whole Foods store in Fairfax, Virginia.Alex Bitter/BI

Despite the price cuts, Whole Foods still has higher standards than most other grocery chains.

A sign promotes Whole Foods as the US's "only certified organic national grocer."Alex Bitter/BI

First up was the produce section, where I found this pack of basil for my spaghetti.

Basil from a source local to Virginia.Alex Bitter/BI

Next, I headed to the butcher counter to get some ground beef.

These pre-packaged pounds of ground beef were the best value.Alex Bitter/BI

I also picked up grated cheese.

I bought refrigerated cheese, not the shelf-stable verison. Alex Bitter/BI

I was surprised to see how cheap many of Whole Foods' store-brand products were.

Lots of shelf-stable and fresh groceries are cheaper at Whole Foods if you buy the company's 365-branded products.Alex Bitter/BI

I also bought pasta sauce.

This pasta sauce didn't come with a discount for Prime members, just a standard "low price."Alex Bitter/BI

Basic groceries, such as milk and bread, seemed slightly more expensive than other stores.

365-brand gallons of milk at Whole Foods.Alex Bitter/BI

Specialty foods, like these chocolate bars from Hawaii, were cheaper than I'd seen elsewhere.

Multiple kinds of chocolate from this Hawaii-based company were available at this Whole Foods store.Alex Bitter/BI

At Whole Foods, my spaghetti ingredients cost $20.62 including tax.

Unlike in some states, the bag didn't cost extra.Alex Bitter/BI

Next, I headed to a Safeway store located just five minutes from the Whole Foods store.

Safeway has a number of supermarkets in the Washington DC area.Alex Bitter/BI

This poster for cheap chicken led me to believe I'd be getting some good deals.

A poster in the window of a Safeway store.Alex Bitter/BI

A number of items were the same price as Whole Foods, such as basil.

Packaged fresh basil leaves sit in a display at Safeway.Alex Bitter/BI

Other ingredients cost less at Safeway than Whole Foods.

Bags of green beans at Safeway.Alex Bitter/BI

Ground beef was the same price as at Whole Foods.

A pack of ground beef at Safeway.Alex Bitter/BI

Grated parmesan was cheaper at Safeway, though only because of a sale.

Parmesan cheese in a cooler at Safeway.Alex Bitter/BI

Milk was only 20 cents less expensive at this Safeway than at Whole Foods.

The whole milk at Safeway had a tag promoting how cheap it was.Alex Bitter/BI

The sale items seemed cheaper than Whole Foods.

These peaches were cheaper than equivalents at Whole Foods.Alex Bitter/BI

At Safeway, my spaghetti ingredients cost $21.10 including tax.

Everything I bought sitting in a cart at Safeway.Alex Bitter/BI

Most discounts at Whole Foods require a Prime membership, which costs money.

Whole Foods advertises three prices for many sale items.Alex Bitter/BI

There are also even cheaper chains in the area that would've likely underpriced Whole Foods.

Aldi also has a strong presence in and around Washington, D.C.Alex Bitter/BI

Ultimately, Whole Foods is cheaper than it used to be.

A Whole Foods store.Carlo Allegri/Reuters

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