Whole Foods says sales hurt by bad publicity from overcharging

NEW YORK (AP) — Whole Foods is feeling pinched after New York City officials found it was overcharging customers.

The Austin, Texas-based grocery chain known for its organic offerings said Wednesday that sales growth slowed sharply at established locations in the last two weeks of the quarter ending July 5.

That was after New York City's Department of Consumer Affairs said the chain's stores were overstating the weight of some pre-packaged products.

Whole Foods, after adjusting for the timing of Easter this year and discount day for workers, said sales rose 2.6 percent at established locations in the first 10 weeks of the quarter. The figure fell to 0.4 percent in the final two weeks of the period after the overcharging in New York became public.

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