Case Study: Whole Foods Market 2008

Business Case Study

Whole Foods Market in 2008: Vision, Core Values, and Strategy

Prepared By: Leigh Clayton

Document Version: Case Study: Module 1

Date: January 2013

STRATEGY

What are the chief elements of the strategy that Whole Foods Market is pursuing?

Whole Foods Market, CEO and cofounder, John Mackey’s highly selective and inflexible quality standards, business approaches, competitiveness, and performance has led the company to become the world’s largest retail supermarket chain for natural and organic foods. The vision for Whole Foods is to support health and well-being for people, customers, team members, business organization, and become the best food retailer by way of setting the standards for the food retail business.

“Whole Foods, Whole People, Whole Planet”

1 growth

Whole Foods growth strategy was to expand their locations by creating new stores and acquiring smaller chains in more desirable locations. Beginning in 2002, Whole Foods had managed to open 10 to 15 larger locations in metropolitan areas each year. In 2007, Whole Foods attained their rival company, Wild Oats, thus providing them additional bargaining power with vendors and entry into new metropolitan markets and states. This allowed Whole Foods to expand their product offerings and reduce prices, improving sales within three months.

2 store size, location, layout, and merchandising

Initially, Whole Foods stores size averaged between 45,000 and 60,000 square feet. In 2000, newly opened stores averaged between 48,000 and 60,000 square feet and their largest location in London at 99,800 square feet.

Whole Foods location strategy was to open stores in upscale, urban metropolitan areas, and sites with premier real estate. Their stores are available in high traffic...