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Does the tumble in Whole Foods Market (WFM) following its FQ1 report showing slowing sales and...

Does the tumble in Whole Foods Market (WFM) following its FQ1 report showing slowing sales and margin trends look any different in light of what could be a wider consumer spending pinch - highlighted dramatically by a leaked Wal-Mart self-assessment? Though the firm still expects double-digit growth and is a dominant brand in its niche, a line from the grocery store operator's earnings call resonates even louder with retail sales looking troubling. WFM on margins: "...we intend to expand our value offerings across the store." (transcript)
Comments (19)
  • Perhaps the consumers at WFM are waking up to the fact that the place is overpriced. However, I am sure that the grocery bags with the name on it impresses all their friends and that makes it all the worth while for many.
    16 Feb 2013, 11:51 AM Reply Like
  • Yup, definitely for the conventional produce/'mainstream packaged goods you can buy elsewhere.
    16 Feb 2013, 11:59 AM Reply Like
  • People who shop there care more about organic, natural, healthy than PRICE. Don't you know anything?
    16 Feb 2013, 12:24 PM Reply Like
  • No need to get nasty. I guess you shop there. Typical snoot, get nasty when someone disagrees with you. Are your friends impressed with your shopping bag?
    16 Feb 2013, 12:29 PM Reply Like
  • Wal-mart sells organic too ;) Probably more volume than WFM too
    16 Feb 2013, 12:33 PM Reply Like
  • WFM Price to Sales 1.4 Industry Average .3


    Price to Cash Flow 17.7 Industry Average 6.6
    16 Feb 2013, 11:55 AM Reply Like
  • Whole Foods has just announced that it will open a store in the middle of the ghetto in New Orleans. Perhaps this is conscious capitalism at work, but the last supermarket in that location went bankrupt. I don't know whether Whole Foods accepts food stamps and It might not matter anyway because the food will fly off the shelves and out the door without stopping at the checkout counter. Winn Dixie pulled out of the ghetto market for this reason. they also experienced the highest number of slip and fall claims in the chain. I will be very interested to see how Whole Paycheck deals with their entire store becoming a loss leader.
    16 Feb 2013, 12:12 PM Reply Like
  • You people are obviously not the target market for Whole Foods.
    I think the four of u should have breakfast at McDonalds
    some fried chicken for lunch, popcorn while watching
    TV then some pizza and plenty of beer for dinner. Don't
    Forget the donuts. What's expensive, cancer & healthcare
    Or pesticde free food and exercise? Read The
    Omnivore's Dilemma , then think before you
    Babble upon that which you remain ignorant
    and clueless. Please dont buy $WFM I'm making
    a fortune and don't need you to share the ride.
    16 Feb 2013, 12:29 PM Reply Like
  • Another nasty liberal. Thanks for your insight.
    16 Feb 2013, 12:32 PM Reply Like
  • Ah liberals and conservatives arguing over investments...funny little
    16 Feb 2013, 12:40 PM Reply Like
  • I just sold MCD after a nice ride and hope to get back in when we get a little pullback. I'm also watching YUM after their troubles in China. Please don't broadcast your healthy lifestyle too widely. It's not good for the fried chicken, pizza and hamburger trade.
    On another note, are there any public companies that profit off Pot Heads? Oh wait, that wood be WFM.
    16 Feb 2013, 02:51 PM Reply Like
  • You don't have to be a liberal (which by any means I'm not) to recognize and make a good investment. I also hold McDonald's and have made quite a profit. I don't invest based on what I eat, I invest based on the numbers/research and that is why I've made the very profitable returns on both stocks.
    17 Feb 2013, 04:38 PM Reply Like
  • Yea, I considered WFM, but instead went with WhiteWave. I think it is always hard to consider retail and/or distribution platforms versus product owners regardless of the industry. I tend to think product owners, win out in the long-term, more so than retailers and distributors.
    16 Feb 2013, 12:34 PM Reply Like
  • I went for White Castle....
    16 Feb 2013, 12:41 PM Reply Like
  • Think Trader Joes. That's WFM's competition, not WMT.
    16 Feb 2013, 12:40 PM Reply Like
  • Definitely one of them. We use Sprouts and find that it is the best quality and value for fruit and vegetables and nuts, and some other items like toilet paper.


    We use Staterbrothers and Albertons mostly for other items like condoments, spcies, etc.


    We actually even stopped going to Costco. Costco's primary value for us was only bread and condoments. Most every other food item is cheaper at either sprouts or local groceries when considering unit cost/need or use of the product.
    16 Feb 2013, 01:47 PM Reply Like
  • I went to my first #WholeFoods ever in January 2013 and I was shocked how much better the food tasted. With their recent opening they are now the closest grocery store and only place I have shopped since. 5 times in the last 30 days. I get door to door organic service already and their offering's for ex. let's take a beet. Theirs are less than half the size of what you find in Whole Food's and they spank them on freshness to. As a #culinary major before I got into #mortgage this is very important to me. I have even lost weight eating organic more.


    I like their 365 brand but would be interested in what the margins are on it compared to other brand names they have on the shelf. It seems like almost daily I get alerts from Scottrade that they are signing deals to open new stores in the out years 2014 - 2016. I'm a buyer of this shareholder friendly company that can self fund that kind of growth.
    17 Feb 2013, 04:36 PM Reply Like
  • Walmart has the worst produce section
    17 Feb 2013, 04:36 PM Reply Like
  • Best overall Grocery retailer in the business, bar none. Forbes Best 100 companies to work for every year the list has come out, excellent vendor relationships (actually keeps them in business instead grounding them into bankruptcy like WMT to get lowest price!), great benefits and actually strives for employee happiness, cultural warriors and actually bringing change to how our food is raised (wow, chemical free 100%, what a concept) etc. Might want to go in the competition and see why more of them copy what WFM does instead of the opposite. And check to see how many employees look happy why your there!
    17 Feb 2013, 11:27 PM Reply Like
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