Whole Foods decision won't be popular with employees (or shoppers)

Brand loyalty is a tricky thing for even the most stellar companies.

Companies with high brand loyalty are just one misstep away from losing all of the goodwill they've built up over the years.

American comfort food chain Cracker Barrel is currently learning this lesson.

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It found itself in the middle of a political firestorm after it removed the man from the Cracker Barrel logo. The company relented and returned the man back to his rightful spot after the President Donald Trump and his supporters made it an issue of national importance.

Cracker Barrel shares dropped, shaving an estimated $100 million off its market cap. Reversing the decision has the company's stock up 9.15% to $63 per share at last check.

However, the company's brand loyalty may take longer to recover.

Cracker Barrel's net promoter score (NPS) is -11 in August, with 39% of online mentions being promoters, 11% being passives, and 50% detractors, according to e-marketing tracker Comparably.

But Cracker Barrel's net promoter score has been negative for years.

A brand like Whole Foods Market used to be viewed with the same reverence as fellow grocers such as Trader Joe's. However, there has been a steady decline since Amazon (AMZN) purchased the company for $13.7 billion in 2017.

The latest move from Amazon is not going to help Whole Foods' reputation online, even if the only people affected are employees.

Amazon's corporate employees are about to see a big change.

Image source: Shutterstock

Whole Foods employees to become Amazon employees in latest move

Whole Foods' quality has been the subject of discussion for years.

Whether it's a Reddit forum asking if anyone has noticed “how bad the quality of Whole Foods produce has been recently” or LinkedIn discussions about Whole Foods' “diminishing brand identity,” the discussion often returns to Amazon's influence on the once-beloved grocer.

On Wednesday, the Wall Street Journal reported that the “Amazonification” of Whole Foods was nearly complete after discovering plans for Amazon to extend new employment offers to the company's U.S. employees who work in corporate roles like marketing and merchandising.

Once Amazon sends the offer to them on November 10, the employees will have about a month to review their new titles, salaries, and benefits.

The move is expected to “bring Amazon's grocery teams closer together and ease collaboration and innovation,” an Amazon spokesperson told the Journal.

The employees will have access to an Amazon discount and health care benefits, but they will lose certain Whole Foods perks, like their in-store discount and four weeks of remote work a year, according to the memo viewed by the Journal.

According to Comparably, Whole Foods' NPS score of 19 ranks it 68th globally among grocers. Once a rival, Trader Joe's is well ahead with an NPS score of 46, ranking it 11th globally.

Amazon's growth has irked shoppers

Even as shoppers and foreign fans have turned on Whole Foods, Amazon says its brand is stronger than ever.

There are now more than 535 Whole Foods Markets located globally, and sales have risen more than 40% since Amazon's acquisition.

More retail:

While it has grown, Amazon allowed Whole Foods to keep its own job titles and benefits packages.

However, in January, the company promoted CEO Jason Buechel to lead Amazon's global grocery business, which includes Amazon Fresh, Amazon Go, and Whole Foods.

So its Aug. 27 report continues the corporate takeover of Whole Foods' brand identity.

According to Comparably data, the longer you've been shopping at Whole Foods, the less you like the changes.

Customers who have been shopping at Whole Foods for over 10 years rate its products and services lowest, and customers who have been shopping there for five to 10 years rate it highest.