Whole Foods is known as “America’s Healthiest Grocery Store.” They are known for this due to their commitment to seek out the finest natural and organic foods available while maintaining the strictest quality standards in the industry, and have an unshakeable commitment to sustainable agriculture. (Whole Foods) In 2012, Whole Foods was the industry leader with having over 30% of the Organic Market sales. Whole Foods has continued to have increasing sales and profit growth every year. Their net income gain has quadrupled since 2008, going from $114 million to $456 million. (Market Watch) They have been able to sustain a higher gross margin and to increase sales while maintaining costs of expenses, which is currently at a higher rate than competitors such as Wal-Mart and Target. (Piro) SWOT Analysis
Whole Foods sells the highest quality natural and organic products available. Whole Foods cares about their communities through offering programs that create partnerships with the poor, support schools in providing nutrition education, and offer low-interest loans to small local producers. (Whole Foods) Whole Foods has more than 350 retail and non-retail locations offering promising careers, with more stores currently in development. Whole Foods realizes their success is dependent on their team members’ excellence and happiness. Whole Foods cares about the environment and is proving so through our Green Mission. Whole Foods creates ongoing win-win partnerships with their suppliers. Weaknesses
Whole Foods has a “whole paycheck” image because some of their foods are higher priced than other grocery stores. (Lutz) There are not as many farmers producing organic products.
Small sized stores. Customers tend to shop for specialty products but not their everyday necessities due to limited in depth selection. Whole Foods Market’s overall sales are increasing, but same store sales growths are decreasing. (Piro) Opportunities
Whole Foods needs to expand their events outside of their store locations to educate the public more about the importance of eating organic and natural foods. Whole Foods could offer a loyalty program to their repeating customers by offering a discount card, coupons, etc. Whole Foods needs to market their 365 Everyday Value products more so consumers realize they do not need to empty their wallets to fill their pantry. Whole Foods could expand their prepared foods to help shoppers who want to eat healthier and feel they don’t have the time or knowledge to do it themselves. Whole Foods can partner with other grocery store chains to carry their 365 Everyday Value Products. Whole Foods has 350 stores nationwide but definitely has room to expand. They need to expand in areas that do not have existing stores, like more in Canada. With technology driven times, Whole Foods can look into offering an app to increase information and awareness on what Whole Foods offers its consumers. Threats
Competition is increasing through more stores offering organic and natural foods selections like Wal-Mart, Target and local grocery stores. Economic conditions may impact consumer confidence in spending causing cut backs in spending on areas like food because some consumers may not realize the importance of eating natural and organic. Foreign exchange rates. As Whole Foods is expanding overseas, this can lead to added unexpected costs. Whole Foods will continue to strive to be the leader in natural and organic foods by maintaining their strict quality standards and continuing to expand their store locations throughout North America and the United Kingdom. Introduction
Pesticides were introduced to the American agriculture in the 1940’s. In 1973, the United States banned the pesticide, DDT. This really helped fuel the fire for organic food logos and labeling. (Natural Food Investor) More people were becoming educated about the pesticides and chemicals being used to grow...
Cited: Safeway, Inc. 10-K for the period ending December 29, 2012. Filed Feb. 26, 2013. Retrieved 8 December 2013 from SEC website, http://www.sec.gov/Archives/edgar/data/86144/000008614413000009/swy122912x10k.htm.
The Kroger Co. 10-K for the period ending February 2, 2013. Filed April 2, 2013. Retrieved 8 December 2013 from SEC website, http://www.sec.gov/Archives/edgar/data/56873/000110465913026395/a132426_110k.htm
Whole Foods Market, Inc. 10-K form for the period ending September 30, 2012. Filed Nov. 21, 2012. Retrieved 10 November 2013 from SEC website, http://www.sec.gov/Archives/edgar/data/865436/000086543612000033/wfm10k2012.htm.
Please join StudyMode to read the full document