There was very little competition when Whole Foods officially launched business in the natural food industry. Only about six other natural food stores existed at the time in the entire United States. Today, the number of organic foods companies has grown substantially and Whole Foods faces stiff competition to maintain its presence in the industry. The industry is thus witnessing low margins and constant price wars leading to downward pressure on prices as shown by weekly specials, coupons, and rewards on cardholders.
As households increasingly become wary of their eating habits, natural food stores in this industry are also incorporating the changing trends by adopting the changing tastes and preferences to attract customers. Healthier diets, low carbohydrate foods, as well as Atkins diet are part of the changes are just but a few of the changes in the industry.
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