How Whole Foods got its mojo back

After spending a year buried in the competition in the natural and organic space, Jim Cramer thinks Whole Foods Market finally has its mojo back.

The stock initially peaked in October of 2013 at $65, and then fell down to the mid $30s a year later. This drop inspired Whole Foods management to kick into action, and institute new innovations both within a customer experience and value perspective.

The company responded by cutting prices, renovating stores and adding technological improvements that have been a game changer.

Whole Foods reported last week, and it showed that these changes have paid off for the company. It reported a one cent earnings beat from a 46-cent basis and a revenue increase of 10.2 percent.





James Reid-Anderson Speaking
CNBC

Can this stock keep soaring? To find out, Cramer sat down Wednesday on "Mad Money" with Whole Foods Market Co-CEO Walter Robb.

"I think you have to be relevant on price, so you can talk about quality, because we are about ultimately the quality. Quality of the food, quality of the experience for the customers, quality of the workplace for the team members and all of those things together," said Robb.

Robb further clarified that what makes Whole Foods different from the competition is the transparency that it offers for its food, and that is exactly what millennials today are looking for in their food.

"We care where our food comes from, we care what happens to it along the way, and we want to trust our sources. I think this younger generation, values matter. They want to know these things. No grocer is as well equipped to provide the transparency on the product and the information as whole foods market," he added.

Additionally, technology is now playing a major role in the shopping experience, as the company is now the No. 1 leader in the use of Apple Pay. How the heck did that happen?

"Think about the Apple watch coming soon, a whole new dimension that is making it easier for the customer to pay for their products," said Robb.

The CEO explained that they recognized the importance of the role that technology would play in the customer shopping experience, as was evidenced by their instacart concept which has led them to also be the leading deliverer of home food.

"Ultimately I believe that retailers that integrate the physical and the digital are going to be the winners. I think the customers say 'sometimes this, and sometimes that' and you've got to be there to serve them."

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Robb further commented that there is plenty more in the hopper when it comes to Whole Foods initiatives, and they are ready to roll higher with a new story for the company.

"Here is the new narrative now; visibility of the company is higher, momentum is broad-based across the whole company and the innovation continues at an accelerated pace. That is the story now."

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