Whole Foods Market slammed for hypocrisy as it preps micro fulfilment centres in select stores that hold CPG goods

Whole Foods Market is planning to install automated micro fulfilment centres (MFCs) inside the back rooms of select stores. The MFCs are from Amazon and Fulfil and will hold CPG products like Coke, Tide, and Oreos. This will allow customers in the stores to place an order for CPG products, with the MFCs fulfilling the order.

It’s a move that not only reeks of hypocrisy, but will also be a waste of capital. So says Brittain Ladd, a supply chain consultant and former Amazon executive.

In a LinkedIn post, he notes that the robotic systems are stocked with exactly the kinds of products Whole Foods refuses to sell in its aisles and on its shelves - from sugary sodas to ultra-processed snacks.

“Why the change? Reality. Kroger, Walmart and other retailers have increased the amount of organics that they sell, and they're luring away Whole Foods customers. In addition, according to internal data, 97% of its customers leave the stores to finish their grocery shopping at a competitor, usually Kroger or Walmart. Whole Foods is losing billions of dollars annually because it won't stock and sell the CPG products its customers love,” Ladd wrote.

“Amazon, who owns Whole Foods Market, has executives smart enough to understand that it would be best for Whole Foods to keep its customers in its stores. Amazon is the reason why micro-fulfillment centres are being installed. However, did Amazon make the right decision? No, it didn't.”

Halloween hosting on 💯 thanks to bold cheeses and crisp produce🎃 pic.twitter.com/WSPBKF4Rko

— Whole Foods Market (@WholeFoods) October 27, 2022

On average, it will cost between $7 million to $11 million to install MFCs inside each Whole Foods store, Ladd estimates. As of 2025, the retailer operates 525 stores. If it installs MFCs in all of the stores, it will cost between $3.6 billion to $5.6 billion. “Think about that. Is keeping CPG products off the shelves at Whole Foods stores worth such a large capital expense?”

“Let’s be clear: this is corporate hypocrisy in action. Whole Foods wants to maintain its halo as a health conscious grocer while quietly profiting from the very products it claims to oppose. It’s a bait and switch, and it calls into question the credibility of the brand and its leadership,” he argues.

He concludes: “Stop the hypocrisy and the charade, and stock the CPG products on your shelves. There are legitimate reasons to open MFCs inside stores. However, opening them merely to keep CPG products off shelves while dispensing them from an MFC in a back room is a ridiculous and costly mistake.”

“I have spoken with senior grocery executives, industry analysts, and consultants who specialise in retail - none of them support what Whole Foods is doing. A well known analyst from CNBC stated to me, I've never seen a retailer implement a strategy that wastes so much capital for so little gain. Put the f'ing Coke and Lay's potato chips on the shelves.”

Whole Foods Market did not respond to our request for comment.

2025 RTIH INNOVATION AWARDS

Automation will be a key focus area at the 2025 RTIH Innovation Awards.

The awards, which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

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He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

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