Whole Foods CEO is betting Gen Z will pay premium for groceries

“And about 55 percent were actually willing to pay a higher premium for differentiating products that actually help support the environment and are sustainable,” he added.

Buechel said consumers often don’t realize that because of the climate crisis, food systems won’t be able to last for the next 50 to 100 years. But Gen Z understands, he added.

“For many of them, it will be in their lifetime that these challenges will be seen in some way,” he said.

Buechel added that the grocery chain is committed to protecting food systems, removing preservatives from its products and providing consumers with healthier products.

Buechel, who took over the top job from Whole Foods co-founder John Mackey in 2022, previously said he visits Whole Foods at least 14 times a week.

“I’m pretty much in the grocery store at least twice a day, every day,” Buechel told Fortune in a July interview.

Whole Foods has cut prices several times since Amazon bought it in 2017.

The cost cuts appear to target Whole Foods’ high prices, which previously led the way buyer to refer to the chain as “Entire Paycheck”.

“Amazon allowed us to drop our prices four times,” Mackey said in a June interview with Fortune. “I never hear the ‘whole paycheck’ story again – that’s because of Amazon.”

Whole Foods isn’t the only retail giant adapting its offerings to fit the needs of Gen Z consumers.

Walmart’s chief technology officer, Suresh Kumar, told Fortune this year that the retail giant conducted market research with business intelligence firm Morning Consult to learn more about Gen Z’s shopping preferences.

The research surveyed 2,200 US shoppers to gauge their current and future expectations. According to the research report, 50% of Gen Z shoppers surveyed wanted a virtual shopping assistant.

The survey also found that more than half of Gen Zers surveyed said they would like to buy products in-store but have their goods delivered to their home.

“This is very, very important,” Kumar told Fortune. “It also ties into some of the things you find in rapport, which is immediacy, speed, instant gratification, especially with Gen Z, including my own daughters. These things matter a lot.”

A representative for Whole Foods did not immediately respond to an after-hours request for comment from Business Insider.