Whole Foods Market Inc. : Expansion in Canada

Whole Foods Market Inc. : Expansion in Canada

⬛ Questions & Answers

(1) Describe the growth of WFM overtime. What are the relevant food-related trends in society and within the grocery industry that may have an impact on WFM and its decision to expand?

• WFM’s roots dated back to 1978, when John Mackey joined a vegetarian cooperative in Austin, Texas to then open SafeWay in Austin with a stake of $45,000 from friends and family in 1978. In 1980, SaferWay joined forces with Clarksville Natural Grocery to open the first Whole Food Market. In June 2003, WFM became the first National Certified Organic Grocer in the United States. As of 2012, WFM was the eighth largest public food and drug retailer in the United States.

• Behind the growth rate for the organic and natural food was growing demand for natural and organic foods to promote healthy eating. Industry studies from 2010 concluded that 92 percent of grocery shoppers believed that meals prepared at home were much healthier than those purchased elsewhere.

(2) Discuss the challenges that come with growth strategies. What are the main strategic tentions? What can WFM do versus what it wants to do and needs to do?

• WFM’s business model has been one of consistent regional expansion through corporate mergers and acquisitions from existing organic food retailers/suppliers and new store openings.

• WFM’s business strategy not only emphasizes selling products with high quality, but also above-average customer service experience with well trained personnel.

• In-store chefs who offer recipe recommendations, wine and food sampling.

• “Take Action Food Centers” for customer information on food issue

• Extra services directed at above average income earners :

 Home delivery

 Cooking classes

 Massages

• Store lacations are selected based on regional demographics, specifically targeting areas where