Whole Foods and the Natural Food Channel

Feb 14, 2014
146 Pages - Pub ID: LA5085813
Abstract Table of Contents Search Inside Report Related Reports

The world’s leading retailer of natural and organic foods with $12.9 billion in fiscal 2013 sales, Whole Foods Market has long been way ahead of the general retail curve, recognizing, capturing, and driving trends with a strategy of carrying a broad selection of high quality foods that appeal to both natural/organic food shoppers and gourmets. The chain’s retail strengths echo market strategies similar to its competitor Trader Joe’s, as both seek to capitalize on growing consumer interest in natural and organic products. In many ways, Whole Foods and Trader Joe’s also have very similar—and actually often the same—customers. Yet, the striking differences between the two chains are what keep the same consumers shopping at both. At Whole Foods, the focus is premium quality and huge selection. At Trader Joe’s, the focus is a sharply edited assortment of great products at great prices.

In separate chapters, Whole Foods and the Natural Food Channel analyzes Whole Food’s historical growth and expansion strategies, mission/position, store location and design, product standards and programs, use of private label, pricing, advertising and use of social media, organizational structure, ethical and environmental initiatives, consumer demographics and psychographics, and more.

In addition the Retail Competitors chapter examines the wave of up-and-coming competitors in the natural foods space. In the past two years, several growth-oriented specialty food retailers and natural food chains—including Sprouts Farmers Market, The Fresh Market, Fairway Market, and Natural Grocers by Vitamin Cottage—tapped the stock market with initial public offerings (IPOs). Natural Markets Food Group, which owns the Mrs. Green’s Natural Market chain, is said to be eyeing an IPO as well. Then there is startup company Fresh Thyme Farmers Market, backed by Midwest-based supercenter retailer Meijer Co. It also is strongly rumored that billionaire investor Ron Burkle’s private equity firm Yucaipa Cos. plans to revive the Wild Oats Market name, converting the Fresh & Easy stores it acquired from Tesco Plc in November 2013 into Wild Oats natural foods markets. No. 1 supermarket operator Kroger Co., which maintains more than 2,400 stores across the country under regional banners including Kroger, Ralph’s, and Fry’s, is also making a play for the natural and organic food space and considers itself the second-largest player in this market after Whole Foods.

Each chapter contains copious tables, charts, graphs, and illustrations that reinforce and make easy to grasp points made in the text.

Our sources of information for Whole Foods and the Natural Food Channel include primary research entailing interviews with retailers and other members of the industry, and on-site examination of retail stores. Secondary research involved the evaluation and comparison of data from articles found in financial, marketing, and industry publications, as well as on corresponding websites and in consumer social media. Other sources for secondary data include annual reports, 10-Ks, transcripts of earnings calls, and literature from individual companies. Consumer data are derived from Simmons National Consumer Surveys for Summer 2013, from Experian Marketing Services.

Trader Joe’s and the Natural Food Channel (February 2014) is also available from Packaged Facts as a companion report. Chapters 3 and 4 in these reports contain parallel content. If you purchase Whole Foods and the Natural Food Channel, receive a $750 discount on our Trader Joe’s report.

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