A fascinating bit of analysis comes today from a Market Watch commentary by
Whole Foods looks healthy Angela Moore, who declares:
After a rough stretch, it looks like Whole Foods Market Inc. is back.
The natural-foods grocer’s (WFMI 41.93, -0.57, -1.34%) quarterly profit more than doubled and it raised its profit and sales target for the fiscal year.
This is a far cry from where the company was in the not too distant past.
In the good old days, shoppers mobbed Whole Foods stores, happy to snap up beautiful produce and meats; chemical-free beauty and cleaning products; and deliciously prepared foods. Sales were on a tear and customers seemed almost powerless against the siren call of the store, which was dubbed “Whole Paycheck.”
Judging from the latest results, Whole Foods looks healthy again.
“It is a turnaround,” said Keith Jelinek, director in Alix Partners’ global retail practice. “During the recession they realized they needed to change the game, and they did.”
Austin, Texas-based Whole Foods had success with keeping its loyal (albeit financially strapped) customers by showcasing value and investing in the private-label brand. Jelinek said consumers are still worried about their finances, but they’re “emotionally” ready to splurge a little bit.
So Private Brand saves the day at the nations largest premium organic retailer.