Whole Foods Market, Inc. (NASDAQ:WFM) is starting off with a new chain of businesses. The co-CEOs, Walter Robb, and John Mackey corroborated the company’s holistic plan to come up with a chain of stores in FY2015-16. The new range of products and stores shall have great value prices, and are deemed to add value to the company’s portfolio. They are to come under a separate range of banners, with the motive to appeal to a large section of consumers.
An unnamed concept!
Mr. Robb came up with an unnamed concept, feature with streamlined design, curated selection, and innovative technology. This concept shall be different from any other feature existing in this contemporary world. Mr. Mackey commented that the company, Whole Foods, had a quarter where sales are deemed to crop up. He is hopeful that the stores available in the chain would almost triple. There is a wide number of competitors from Sprouts Farmers Market, Kroger and such other specialty chains, competing with aggression in the natural and organic foods space.
What do the industry insiders convey?
The industry insiders have conveyed differing views in online discussions, harping on the demographic concepts. Carlos Arambula of MarcasUSA commented that Mr. Robb and Mr. Mackey are perhaps misreading the minds of the millennial consumers, idealizing that the latter can be lured with merely the ‘value’ concept. He further added that perhaps a Trader Joe’s customer or that of ‘Fresh and Easy’ may be attracted by the concept.
Analysts and businessmen have commented that perhaps the risk with the currently expanding business have urged WFM to think differently. Hence, the latter is perhaps assuming that the company has an unmet need for natural foods that are low-priced. Perhaps, on that premise, the company is harping on a lower-priced shopping to hook consumers. The strategists adhere to statements that WFM need to practice the strategies that are profitable, positive and accretive in nature.