Whole Foods Market Rejects Checks

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We’ve all been there. You stop at the supermarket to pick up a few items after work, anxious to arrive home. After filling your shopping cart or hand basket with the items you need (or want), you make your way to the register and prepare to check out quickly. However, you find yourself behind someone paying with a check. As you already know, this is a time-consuming process, and it’s the main reason Whole Foods Market WFM is putting an end to check-writing in its stores.

Implementation and Expected Response

On September 1st, Whole Foods customers in the following states will no longer be able to write checks: Texas, Louisiana, Arkansas, and Oklahoma. This is in addition to the majority of its other stores.

Lindsay Robinson, a Whole Foods spokesperson, stated the following: “Most of our regions no longer accept checks, but the southwest is not the last one to make the transition. By accepting electronic payments and cash, we will reduce wait times in line.” http://www.dallasnews.com/business/retail/20140825-whole-foods-market-is-latest-retailer-to-reject-checks.ece

Some backlash is expected, but not from the majority of shoppers. According to a Fed Bank Study, check payments have plummeted 50 percent since 2000. Furthermore, a 2013 Federal Reserve Payments study revealed that checks written had declined 10 percent every year between 2009 and 2012.

While Whole Foods Market is putting an end to check-writing in its stores, one of its competitors still embraces it.

Checking Out at Kroger

Kroger KR, as well as its subsidiaries (including Harris Teeter), still accepts checks. Only about 5 percent of Kroger customers pay by check, but many more of them cash their checks at the customer-service counter. Kroger charges a fee for this service. Therefore, it’s logical for Kroger to keep this service in place.

Other retailers no longer accepting checks:
Gap (namesake brand, Old Navy, Banana Republic)
Diesel
True Religion
Ed Hardy
Lululemon

Retailer only accepting debit cards and cash (no checks or credit cards):
Aldi

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Posted In: General
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