The first Whole Foods Market opened in Austin, Texas in 1980 under the leadership of founders John Mackey, Renee Lawson Hardy, Craig Weller, and Mark Skiles. Whole Foods was an entrepreneurial success story, characterized by simple responsiveness to changing consumer preferences in the marketplace.

In 2024, Whole Foods celebrates 20 years as a certified organic retailer committed to selling "the highest Quality Natural and Organic Food." The company went public in 1992. Amazon (AMZN) acquired Whole Foods Market in 2017 for $13.7 billion. Whole Foods has over 500 retail outlets in the U.S., United Kingdom, and Canada.

"Whole Paycheck"

As the organic grocery store grew, it earned the nickname, "Whole Paycheck." In December 2015, Whole Foods settled allegations with the New York City Department of Consumer Affairs that the chain overcharged customers. The settlement required Whole Foods to pay a $500,000 fine and monitor its pricing practices. 

While shopping for groceries at Whole Foods does not usually devour an entire paycheck, its prices were notably higher on average than at other grocery shopping venues. In 2016, MarketWatch compared prices of 14 grocery items at Whole Foods with comparables at Trader Joe’s, Safeway, and Target. Whole Foods ranked the most expensive.

Amazon Price Cuts

When Amazon purchased Whole Foods in 2017, it vowed to make the natural and organic grocer’s products “affordable for everyone.” By 2019, the price gap Whole Foods held over regional supermarket chains fell by almost half, to about 12% to 13%, from 20% before Amazon’s purchase.

Compared with national supermarket chain Kroger, Whole Foods’ price premium gap was “still significant” at 27% on average, despite declining from 40% in the past, according to a study conducted by Morgan Stanley. 

In 2023, Whole Foods and Trader Joe's continued to rank highest for the cost of 18 basket items in a study conducted by the Philadelphia Inquirer. The grocery stores with the best pricing were Aldi and Lidl.

How to Save Money at Whole Foods

Whole Foods continues its commitment to organic and sustainable values, banning over 500 ingredients in its food, beverages, supplements, body care, and household cleaning products. As of 2022, Whole Foods had 37,498 active organic products in its retail locations. Consumers can s🗹ave money on those products through a partner♛ship with Amazon.

Prime members can enjoy discounts at Whole Foods by downloading the Whole Foods app. There are weekly deals for Prime members and deeper discounts on groceries available at Whole Foods during Prime Days. Prime Members benefit from Whole Foods Market and Amazon Fresh delivery with one monthly subscription.

The Bottom Line

Whole Foods is a certified organic retailer, committed to supporting local farmers and suppliers. Although consumers commonly report higher pricing at Whole Foods, its acquisitio♋n by Amazon has enabled Whole Foods customers to enjoy discounts as Prime subscribers with more perks at Whole Foo💜ds Markets.