• The New York Times , Monday, August 4, 2008 10:30 AM

Whole Foods Market is on a mission to revise its gold-plated image as consumers pull back on discretionary spending. Its sales growth was cooling even before the economy turned; the company is now offering deeper discounts, adding lower-priced store brands, emphasizing value in its advertising, and is even inviting customers to show up for budget-focused store tours.

The budget claims are no easy sell at a store that earned the nickname Whole Paycheck. Co-president Walter Robb acknowledges that Whole Foods is fighting strong consumer perceptions about the chain's prices, adding that some of it is deserved. But he says the company has made a strong effort to engage its competitors on price. "We challenge anyone on like items," he says.

Consumer interest in organic food appears to be leveling off after several years of double-digit growth. Laurie Demeritt, president of the Hartman Group, says core consumers for organic goods, about 15% of the population, are becoming even more committed. But people less attached to such items are continuing to buy organic dairy products, produce and meat, and are buying fewer organic goods among packaged items, like cereal and crackers, she says.

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