Whole Foods 2010 Case Study

Whole Foods Market in 2010: Vision, Core Values, and Strategy

Carrieann Walker

Benedictine University

The history of the company: “Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided the natural foods industry was ready for a supermarket format. Our founders were John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery. The original Whole Foods Market opened in 1980 with a staff of only 19 people. It was an immediate success. At the time, there were less than half a dozen natural food supermarkets in the United States. We have grown by leaps and bounds since our first store opened.” (Wholefoodsmarket.com, n.d.)

The Whole Foods growth strategy was to expand through the opening of stores and to acquire small chains or store that already exist. The acquisition of Wild Oats gave Whole Foods the ability to open smaller locations but they could still focus on the larger supermarkets too. The company prefers to open stores that are 40,000 to 60,000 square feet and Wild Oats markets are markedly smaller. The choice to open larger stores was based on better visibility and ease of parking which a smaller store couldn’t measure up. The capital needed in order to open theses larger markets was no small price tag. In 2007, it cost $15.1 million plus an additional $850,000 to stock a new location with products. Most of these funds are generated by Whole Foods through the acquisition $534 million of Wild Oats. (Thompson, 2012)

Whole Foods markets are chock full of thousands of products and departments that fulfill every shopper’s needs. At the Austin location they offer 40 varieties of olives, 600 types of cheese, a selection of 1800 wines, a beer cooler with 800 varieties, a natural home section with organic cotton apparel and linens, and a raw food and juice bar (just to name a few). This store is 78,000 square feet and their London location is...