Whole Foods Market Updated

Whole Foods Market
James Alford
Jeremy Keller
Matt Muller
• Opened in 1978 as “SaferWay” in Austin
Texas by college dropout John Mackey
and his girlfriend Rene Lawson with $45k
borrowed from family and friends
• Partnered with Mark Skiles and Craig
Weller merging with their Clarkville Natural
Grocery to open first Whole Foods in 1980
• Memorial Day 1981, Austin flooded
destroying the uninsured stores’ inventory
and equipment causing $400k in damage.
• Customers and neighbors volunteered to
rebuild store.
• Creditors, vendors and investors provided
relief of debt payments during rebuilding
• First expansions in Houston and Dallas
and then by acquisition of Whole Foods
Company in New Orleans.
• Expansion has continued with new stores
nationwide. Real growth fueled by
acquisitions of other natural food chains
such as Fresh Fields, Allegro Coffee, and
• 193 Stores in the US and UK.
Site Requirements
• 200,000 people or more within a 20 minute drive
• 40,000–75,000 square feet
• Large number of college-educated residents
• Abundant parking available for exclusive use
• Stand alone preferred, would consider
• Easy access from roadways, lighted intersection
• Excellent visibility, directly off of the street
• Must be located in a high traffic area (foot and/or
Declaration of
• Whole Foods
– “We strive to offer the highest quality, least processed, most
flavorful and naturally preserved foods.”
• Whole People
– “We recruit the best people and empower them to make
their own decisions.”
– Ranked 5th on Fortune’s “Best Companies to Work For” list.
Although there may be trouble in paradise.
• Whole Planet
– “We believe companies, like individuals, must assume their
share of responsibility as tenants of Planet Earth.”
Core Values
• Selling the highest quality natural and
organic products available.
• Satisfying and delighting our customers.
• Support team member excellence and
• Creating wealth through profits and
2006 Financial Results
• Reported income of $203 million on
revenue of $5.6 billion.
• Paid $2.45 in cash dividends per share.
• NASDAQ symbol WFMI currently trading
at $47.56 per share.
SWOT Analysis
• Strengths
– Strong financial position
– Leading market position in US
– Wide product range
• Weaknesses
– Advertising (word of mouth)
– Weak international operations
– Low employee efficiency
• Revenue per employee is $137,537 compared to industry
average of $309,186
SWOT Analysis
• Opportunities
– High demand for organic products
– Growth in private label products
– Expansion in the UK
• Threats
Competition (Wal-Mart)
Consumer spending slowdown (premium product)
Labeling and other regulations
Image problems alienating core customers (corporate
Video Clip
Wallstrip | Whole Foods Market