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More Affordable Groceries Are Costing Whole Foods

Mr. Robb said that despite the challenges it ces, Whole Foods isMore Affordable Groceries Are Costing Whole Foods still well-positioned to internally fund our expansion plans and has the pipeline and infrastructure in place to accelerate new-store openings.

5 Risks for the Economy in 2013


Whole Foods is offering more discounts and putting more value-oriented brands on its shelves, while also holding prices irly steady despite its own rising costs. The idea is to broaden the chains appeal to customers with a wider range of incomes, education and ages. But it has drawbacks. 织梦内容管理系统

BMO Capital Markets analyst Karen Short questioned whether Whole Foods really needs to continue narrowing the gap between its own prices and its competitors, since it has already made so much headway. In response, Whole Foods founder and co-Chief Executive John Mackey said its competition is increasing around the country, so it needs to continue to improve its value positioning. 织梦内容管理系统

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Mr. Robb added Whole Foods is going for the big prize, which is, those folks who are not eating as healthy. While the market for fresh and organic foods is large, we think that by continuing to improve our position, we have access to a much bigger market than were currently serving, he said.


Write to Annie Gasparro at annie.


By Annie Gasparro

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Whole Foods on Wednesday warned it expects its profit margins for the next three quarters to decline compared to last year.


The weak outlook caused Whole Foods shares to ll about 6% to $91 in late trading, despite reporting a 24% rise in profit for its fiscal first quarter, which ended Jan. 20.

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(END) Dow Jones Newswires 02-13-ET Copyright (c) 2013 Dow Jones & Company, Inc. 本文来自织梦

Whats more, the company admitted even with all the investments it made to appear more affordable, it still didnt make the additional progress it hoped for in attracting new customers in the latest quarter. In ct, its overall customer traffic growth slowed. 织梦内容管理系统

risk ctors in the year ahead. 织梦好,好织梦

He added that last year, Whole Foods saw record gross margins in its fiscal second and third quarters, it more difficult to further improve profitability this time around. 织梦好,好织梦

Whole Foods has red better than most supermarkets in recent years because its knack for organic and fresh foods has attracted a wealthier set of consumers who werent hit has hard by the economy.


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Over the past year, Whole Foods has been a push in to smaller, more suburban areas, where there is less competition for high-end grocery stores. The stores it is opening there cost less to build and operate because they are generally smaller and have cheaper rents. But it is imperative that Whole Foods appeal to that more cost-conscious crowd. copyright dedecms

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Whole Foods Market Inc.s ( WFM ) profit margin is slipping as the chain tries to rid itself of its reputation as an overpriced grocer.

The executives called the current environment a little uncertain and a little unsteady, saying its hard to tell what to expect for the industry this year.


BAC$ 12.17 0.61% GE$ 23.39 3.59% BBRY$ 13.99 7.96% ZNGA$ 3.17 2.19% CMCSA$ 40.13 2.98% FB$ 27.90 1.94% CSCO$ 21.14 0.81% SIRI$ 3.20 0.47%


Not to mention, uncertainty in the economy is starting to weigh on Whole Foods once-resilient core customers, it more important for Whole Foods to have competitive prices. 织梦好,好织梦

We know that one of the keys to broadening our appeal and growing our sales over the longer term is to improve our relative value positioning, co-Chief Executive Walter Robb said on a conference call. As such, we are not forecasting an improvement in gross margin this year. 织梦好,好织梦

After opening 10 stores in the latest quarter, Whole Foods has about 345 stores and plans to reach 1,000 in the U.S one day.

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