Whole Foods sees stores tripling with embrace of produce
The move reflects a new direction for America’s largest purveyor of natural goods, according to Walter Robb, the chain’s co-chief executive officer.
As Whole Foods prepares to open the Detroit store in May, it’s planning to triple its store count to 1,000 and boost sales by opening locations in underserved areas and smaller markets.
“We’re accelerating growth,” Robb said in an interview at the company’s Austin, Texas, headquarters. “That’s going to take us places we have not been to before.”
Whole Foods is just the latest grocer to see opportunity in so- called food deserts and other areas where finding fresh fruit and vegetables is a chore.
Supermarkets are fighting for share as Americans eat out more and grocery-store sales stagnate. Industry revenue will grow an estimated 0.4 percent to about $491 billion this year, according to a June report from researcher IBISWorld Inc. Sales at Whole Foods may rise 16 percent to $11.7 billion in the company’s fiscal 2012, according to data compiled by Bloomberg. Its “niche product lines and loyal customer base” will help propel continuing sales growth, IBISWorld said.
Source: www.bloomberg.com
