User 155020

Whole Foods Market Continues to Slide

WF cannot survive simply by catering to the wealthy. They have too many stores in different areas of the country and their stores are too big. The rent and electricity is the same regardless of sales, the lower the volume the higher the expense as a % of sales. The competitors are taken away WF customers in droves, by price and service. Trader Joes is making it a point to open next door to WF and take away 300,000.00 a week in sales, is like taking candy from a baby.
As WF becomes more competive , their margins will detiriorate and their earnings will continue to suffer.

Whole Foods Market: On Track for Organic Success

Hi David, have you heard /been to a Trader Joe’s? WF stores are BIG & BEAUTIFUL, TJ stores are selling machines, about 3 times higher in sales per square feet. TJ opens their new stores very close to WF, they take away over $200,000. a week in sales. As WF reduces their retail prices to compete with TJ their MARGINS DECREASE, causing their earnings to decline. They are big & beautiful stores, the customers go to TJ.