Whole Foods’ next CEO wants to reconnect the chain with its higher purpose




Speaking at The Wall Street Journal’s Global Food Forum, Jason Buechel said one of his goals as the next CEO of Whole Foods Market is “to reconnect to many parts of our heritage as a company.”
Mr. Buechel, who will replace Whole Foods’ co-founder John Mackey on Sept. 1, noted that there has been “just a lot of change within the company over the last five to six years” following Amazon.com’s 2017 acquisition. He particularly called out “distractions” over the last two years as the safety of associates and customers, as well as supply chain challenges, became a priority.
“One of my top goals is to reignite the connection to our higher purpose, mission and core values with our team members,” said Mr. Buechel. “We’ve been through a lot.”
Mr. Buechel, who has worked alongside Mr. Mackey as COO since 2019, said a major change under Amazon’s ownership has been investing aggressively in prices that he believes have attracted new customers and better positioned the chain for current inflationary pressures.
“Our price perception is in a better place now,” said Mr. Buechel. “And as we look at the broader market, we’re really proud of where we show up, especially on entry-level price points for high-quality products.”
Amazon has also helped Whole Foods embrace a “long-term vision” to support investments in areas such as price and supply chain as well as the chain’s broader mission of elevating quality and ethical standards in the grocery space. As a public company, quarterly growth and profit targets were often prioritized, but Amazon ownership has helped Whole Foods explore what they are “going to do in 10 years that’s going to change the world,” according to Mr. Buechel.
“What are the things that we’re going to be doing to reduce food waste,” he said. “What are we going to do to improve our social environmental impact? And so for me, that’s something that’s important. It’s important for our team members. It’s important for our stakeholders. It’s one of our differentiations. We’re more than just a grocery store.”
- WSJ Global Food Forum – The Wall Street Journal
- Whole Foods to Focus on Prices as Pandemic Eases, Says Incoming CEO – The Wall Street Journal
- Whole Foods founder, CEO to retire; COO named successor – The Produce Reporter
- The Next Evolution of Whole Foods Market: Jason Buechel Speaks at WSJ Global Food Forum – Whole Foods Market/WebWire
DISCUSSION QUESTIONS: What advice would you have for Jason Buechel as he prepares to take over as CEO of Whole Foods? What business strengths should be build on and what weaknesses need shoring up?
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15 Comments on "Whole Foods’ next CEO wants to reconnect the chain with its higher purpose"
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Managing Director, GlobalData
In my opinion, Whole Foods is a good retailer but it is a very long way from being a great retailer. While the company does a good job on areas like the health and provenance of food, it does a poorer job on range innovation, taste and experience. In a retailer like Wegmans I am blown away by the private label innovation, the excellence of the products, and the experience they create in-store. By contrast Whole Foods is pretty bland. To justify the higher costs – and let’s be honest here, Whole Foods is still high price even though they have done more with value tiers – Whole Foods needs to deliver far more than it presently does.
Principal, Retail Technology Group
Advice: get spun-off from Amazon. The companies never were in the same businesses and the Whole Foods raison d’être has little or nothing to do with its parent.
Co-founder, RSR Research
Retail Industry Strategy, Esri
I admire Mr. Buechel’s insight and his desire to connect with Whole Foods “heritage values.” I do wonder how that will work when those values conflict with Amazon’s business practices. Managing that is going to be really difficult to do I suspect. I would also point out that pre-Amazon Whole Foods was not really “killing it.” I think it’s admirable to want to focus on doing “good,” but at the same time they need to remember the issues they’ve had in the past and not repeat those.
Content Marketing Strategist
Mr. Buechel is wise to double down on purpose-driven leadership in sustainability and wellness.
Whole Foods’ strengths include long-term vision, data prowess and efficient sourcing of premium, innovative products.
Inflation is the top risk, as even upscale shoppers may seek savings elsewhere. Continuing to invest in price perception and smooth omnichannel experiences will strengthen Whole Foods’ position.
President, Spieckerman Retail
Operational upgrades aside, Whole Foods has been missing the very elements that used to set it apart and that Mr. Beuchel outlined. Unfortunately for Whole Foods, food waste initiatives, ethics monitoring, plant-based pushes, and other actions have become table stakes for competing grocers in the meantime. Many of Whole Foods’ stores have also departed from the funky design elements and culture that differentiated the retailer in the highly-competitive grocery space. At this point, Whole Foods will need to make bold, visible moves to stand out from the crowd and de-Amazon its offering.
Principal, SSR Retail LLC
Reconnecting with the Whole Foods’ “higher purpose” can’t be done as long as Amazon holds the keys. After five years it’s clear that Amazon doesn’t really know what to do with Whole Foods – there is no overarching purpose or meaning apparent any longer. It’s little more than an Amazon locker that sells food.
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
I believe Mr. Bueschel is spot on with his assessment of Whole Foods and its future. I give a big “bravo” to his comment — explore what Whole Foods is “going to do in 10 years that’s going to change the world.” That type of thinking will surely give them a leg up in the future and we would be hard-pressed to name other retailers thinking the same way.
Founder, CEO, Black Monk Consulting
Chief Amazement Officer, Shepard Presentations, LLC
I like what Mr. Buechel is getting ready to do. He’s going back to what “brought them to the dance,” and recognizing there may be an opportunity to repeat some of what gave Whole Foods their original success. Today’s customers, more than ever before, want to align with a brand that stands for something. Our customer experience research found that 45 percent of American consumers believe it’s important that a company has a social cause that’s important to them.
Founder, Grey Space Matters
If WFM can maintain its price perception AND revitalize the brand promise and purpose of WFM, they stand to win. The Amazon acquisition and COVID are certainly headwinds but the latter is true for all and the former provides an avenue for growth across the AMZN customer and Prime membership bases. WFM has an unrivaled number of assets to leverage and there should be fewer excuses going forward along with better performance and a better customer experience.
Consultant, Strategist, Tech Innovator, UX Evangelist
Managing Partner Cambridge Retail Advisors
I did a price check in Florida with the same basket of groceries a few years ago, and Whole Foods beat three other regional brands. Their produce and prepared foods are still unique in many ways, too. Service? Whenever I’ve asked where something is, they always walk me right to the product, stopping whatever they were doing before. So, I think what WF will want to focus on is environmental and sustainability aspects, although I’m not even sure what, if anything, needs to be “fixed.”
Retail Transformation Thought Leader, Advisor, & Strategist
CEO, New Sega Home
Perception is reality. Whole Foods will never be able to shake consumer awareness that it is attached to Amazon. This association completely distracts from an efforts made towards a high-purpose and will always negate efforts unless it’s separated in the future.