Baby Boomer Generation
Health Food Industry
Whole Foods grocery stores seem to be gaining some momentum, according to The Sizemore Letter, a stock market newsletter, on December 13th, 2011. The newsletter attributes the growth to “benefits from several macro themes.” The number one theme is “As the Baby Boomers age, they are taking their health a lot more seriously, and part of this is having a healthier diet, including more natural, organic food. This is a theme that will likely have some staying power.”
Whole Foods Sweet Spot
Those concerns are right at the sweet spot of product delivery for Whole Foods. Baby Boomers are loving it. When I have visited there stores recently I have noticed that many of the customers are my age. There is something about the arrangement of the store as well. It gives one the feeling of shopping in a bistro or a posh farmers market. They offer products that you cannot find elsewhere.
However, if you can find the same products in another store, say ALDI, you are sure to pay less than you will at Whole Foods. Yet, boomers like the store and have the money to spend. A recent Wall Street stock newsletter points out this fact. “The other theme is the divergence of the Two Americas. Working class and younger Americans have taken the brunt of the recession and slow growth. But highly-educated and wealthier Americans are doing just fine for the most part.” So, the “better off than others” boomers seem to be attracted to luxury goods, especially luxury foods.
Some might say that boomers are attacked to Whole Foods because of their “green” mentality. For sure one will find many “organic”, “green”, and “no additives” products. At the check out stand, my “green” purchases are put into paper bags …. sorry trees.