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Whole Foods plans major marketing push

By WTOP Staff

CANDICE CHOI
AP Food Industry Writer

NEW YORK (AP) — Whole Foods is getting ready to launch its first national marketing campaign and expand home delivery as it looks to fend off bigger players muscling into the organic and natural foods category.

The company, based in Austin, Texas, said the marketing campaign this fall will explain to customers what makes it different and why it’s better than other supermarkets.

“We believe there are real and substantive differences in the company and in the values and the foods that we sell,” said Walter Robb, co-CEO of Whole Foods, during a conference call with investors.

In addition, he said the company will partner with third parties to offer home delivery in 12 to 15 major markets, with plans for a wider rollout over time. Whole Foods declined to give details about which cities will get home delivery, but it already offers delivery in select markets, including New York City. Other major players such as Wal-Mart are testing delivery as well.

In coming weeks, Whole Foods also said it will test a new loyalty program, with plans to roll it out widely in time for the winter holidays next year.

The efforts come as Whole Foods struggles to spark slowing sales growth, which has worried investors that the company is losing ground in a segment it once dominated. On Wednesday, Whole Foods Market Inc. said sales at established locations rose 3.9 percent in its latest quarter, helped by a shift in the timing of Easter.

A year ago, the figure had climbed 7.5 percent.

The problem is that Whole Foods is contending with traditional retailers such as Wal-Mart Stores Inc., Kroger Co. and even drug stores, which have significantly expanded their organic and natural food offerings.

To appeal to a wider range of customers, the company is trying to change its pricey image that has led to it being dubbed “Whole Paycheck” by some. The effort to keep prices down has included pushing its store brands, which are generally cheaper to stock than name brands at its more than 380 stores.

Looking ahead, Whole Foods now expects sales at established locations to rise 4.1 to 4.4 percent for the year, down from its previous forecast of 5 to 5.5 percent. It also trimmed the high-end of its diluted earnings per share forecast by two cents, and now says it expects to earn $1.52 to $1.54 per share.

For the quarter, the company said it earned $151 million, or 41 cents per share, which is two cents more than Wall Street expected.

A year ago, it earned $142 million, or 38 cents per share.

Revenue rose 10 percent to $3.38 billion, but missed Wall Street forecasts for $3.4 billion, according to Zacks.

Shares of Whole Foods fell 3.6 percent to $37.70 in aftermarket trading following the earnings announcement. The stock is down more than 32 percent over the past year.

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Follow Candice Choi at www.twitter.com/candicechoi

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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