Whole Foods Mulls Larger Stores, Acquisitions

[Sherman A1]

AUSTIN, Texas — Whole Foods Market here said Tuesday that improving results at larger stores between five and eight years old may prompt it to consider opening stores of mixed sizes going forward.

Locations that Whole Foods opened between 2007 and 2009 “are still comping strongly as they get older,” John Mackey, chairman and co-chief executive officer, told analysts, “and they have higher long-term potential than smaller stores because they offer more parking, less spoilage and greater efficiencies. Many of those stores [of 40,000 square feet to 45,000 square feet] opened when the economy dipped, but sales are up and they are performing well enough that we’re considering opening some bigger flagship stores in certain markets.”

Whole Foods has been focusing on stores of 30,000 to 35,000 square feet in the last few years as it has entered smaller markets, “but we’re now shifting back up to a range of 35,000 to 45,000 square feet,” David Lannon, executive vice president, operations, pointed out.

The company may also seek to acquire smaller stores, as it did when it purchased six Johnnies Foodmaster locations in the Boston area last year. It reopened the first one, in Brookline, Mass., under the Whole Foods banner a month ago — at 16,000 square feet, the smallest Whole Foods in the U.S. — “and it’s off to a good start and doing better than expected,” Lannon said, “and we’re bullish on replicating that strategy.”


Read More: http://supermarketnews.com/natural-food-stores/whole-foods-mulls-larger-stores-acquisitions#ixzz2Sn6Q0dE5

[Fuddnik]

1. They're opening one near me next year.

Never been in one. I might check it out just to see what they have.

[gvstn]

10. One just opened last year near me

I saw it during construction and must say it is a beautiful store. The whole front facade is a two story wall of glass that looks very inviting at night with all the lights shining.

It is a few miles away from my local supermarkets/Trader Joe so I only went through once. Immaculate, bright huge variety. It appears to be a fairly large one at 38,000 sq. ft.

A huge selection of unique things like bulk grains from around the world. Very interesting. Most items are specialty brands so you won't find all your usual grocery items there. I'd say if you shopped there for all your groceries you would be paying about a 1/3 more on your total bill. So if you buy Florida Natural OJ for $3.49, you would probably pay $4.99 for their equivalent brand. I didn't really check out the meat department.

I have to say the Produce looked fresh and beautiful. It was competitively priced and might be worth the trip once a week in the summer to see what they have available in locally grown. For instance, I was there at Halloween and they had thousands of pumpkins of various varieties, all nicely labeled with type and the local farm they were from. They also had many varieties of apples that are hard to find anywhere but an orchard. Now that you have reminded me, I am going to put it on my list to check out the summer fruit there. It is way closer than my orchard.

Definitely take a look around yours when it opens. It is an experience but a bit overwhelming at first glance.

[hobbit709]

2. What the world needs. More and bigger Whole Paychecks.

Bigger store means more overhead, so even higher prices. I can buy the same things they sell for a lot less in other stores. and I won't have to dodge the Lexus's and Beemers in the parking lot.

[kentauros]

12. Not everything costs more at WF.

As a vegetarian, some of the "fake meats" I like cost at least a dollar per package less than at my local (and closer) Kroger store. They also haven't been on the shelf as long, due to more vegetarians buying at WF, so they go through their stock faster. The small HEB stores nearby don't carry those products at all, nor does Fiesta.

For the things I like in my diet and life, WF often either has those items for less or they have more variety to offer. These days, for whatever stupid reasons with the grocery stores, you have to shop at several of them to complete your list. WF for me is just one more stop.

[WinkyDink]

4. WTH are "comps"?

[WinkyDink]

6. I missed that business class....thank God.

[Sherman A1]

11. Comparable sales from one time period

"Comp"ared to another time period. It is generally how retailers figure out how a location is performing.

[Marrah_G]

7. I would actually love to see some smaller stores

[HappyMe]

8. Meh. I don't shop at the

Whole Paycheck now, and don't have any plans to start.

[mucifer]

9. Just have to say that Costco is doing well, too.

and they do it with good pay and benefits to employees including on major holidays the stores close. They are able to do this with no commercials or ads.

http://www.forbes.com/sites/greatspeculations/2013/03/11/costcos-earnings-steady-sales-growth-and-expanding-membership-base-in-focus/

[backscatter712]

13. I'd rather shop at their competition.

In Colorado, try Vitamin Cottage. That way, you don't have to give your money to that right wing prick that's Whole Paycheck's CEO.