Whole Foods Case Study

1139 Words5 Pages
1. What are the chief elements of the strategy that Whole Foods Market is pursuing? Whole Foods seeks to offer the highest quality, least processed, most flavorful naturally preserved and fresh foods available, and to market them in the most interesting and appealing store environments possible. In order to attain this goal, Whole Foods has incorporated several strategies. Due to changing economic conditions, Whole Foods has had to modify each of their strategies accordingly. Growth Strategy: After going public in 1991, Whole Foods growth strategy began as an ambitious, combination of opening new stores and acquiring small, owner-managed chains. Acquisition of stores did not prove to be easy due to the fact that most retailers of natural and organic foods were small, one store operations or small regional chain stores that operated in significantly smaller spaces than traditional Whole Foods stores-a conflict of interest since management at Whole Foods wanted to open 40,000 to 80,000 square foot stores at a rate of 10 to 15 per year in major metropolitan areas. After the controversial acquisition of Wild Oats, and the subsequent ruling against Whole Foods, Management stated that, going forward; Whole Foods would concentrate their growth strategy on opening new locations and not on acquisitions. The economic downtown of 2008 further influenced Whole Foods to examine their growth strategy. Store Location Strategy: Whole Foods strives to locate their stores in high-traffic, upscale neighborhoods of major metropolitan areas, on choice real estate. Stores are either freestanding or located within shopping strip centers. From 2001 to 2009, Whole Foods stores were built to be between 40,000 and 60,000 square feet, slightly larger than traditional supermarkets. The plan for 9 additional stores in 2010 and 17 new stores in 2011 and 2012, respectively, was
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