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Dec
29
Written by:
Anna Soref
12/29/2009 10:19 AM
First it was the uber naturals chain “going back to its [healthy] roots”. Now comes the announcement that Whole Foods co-founder and chief executive officer John Mackey is relinquishing his title of chairman. Yes, Mackey is giving up some of his ubiquity in the chain. Was it his choice? Probably not. ctW Investment Group, a federation of shareholder activists that work with union pension funds has been asking for the separation of the two roles for years. But following Mackey’s New York Times tirade against Obama’s health care plan, ctW asked that Mackey step down as chairman saying that “Mr. Mackey attempted to capitalize on the brand reputation of Whole Foods to champion his personal political views, but has instead deeply offended a key segment of Whole Foods consumer base.”
As a result, Mackey is giving up his chairmanship which he has held since 1978.
Will this help diving WF stocks? What about the chains’ reputation? During the difficult financial times of ’09, WF was seen by many as a bastion of frivolous over-priced non-necessities despite its efforts to market itself as affordable.
But what about its reputation in the naturals community? I can’t help but wonder if its straying from its natural roots has done irreconcilable harm. In a community that strives for authenticity, even often above the almighty dollar, will a makeover for WH be enough? And what kind of makeover are we talking? Merely cosmetic or core rebuilding? Stay tuned.
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12 comment(s) so far...
Re: Mackey steps down as WH chairman
I think John Mackey is an amazing person and created an amazing company. I also think it is a perfect time for him to step down.
Thirty pllus years at the helm of such a dynamic company says enough.
By Lakeside Lodge on
12/30/2009 9:07 PM
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Re: Mackey steps down as WH chairman
I am a former customer of Whole Foods who discontinued my patronage following Mr.Mackey's arrogant words. I would like to know how much influence he continues to hold as a member of the Board.
If his views continue to sway others in authority, I will continue to boycott Whole Foods. That is my reason for asking the question. Thank you for any information you are able to offer.
By Lorna Shapiro on
12/30/2009 9:07 PM
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Re: Mackey steps down as WH chairman
Mackey steping down will not change the WF culture. I was raised out of a health food store. I have been in the industry for 22 year. Mackey was right about
having to go back it roots. The internal culture of the company is very
controlling. There employee manual is as thick as "War and Peace".
They have a policy of team membership where have to be voted on a team. This can become very clickish. Now a general trend is because
of the job market is that the general employee in many natural food markets don't come close to living the lifestyle. I really don't like a smokey cashier breathing my way.
By greg on
12/31/2009 11:43 AM
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Re: Mackey steps down as WH chairman
I read Mackey's ideas on health care reform very carefully, and they appeared to me to make great sense. Far from being a "tirade", the article was restrained in tone, attacked nobody, and offered very reasonable ideas.
It is remarkable, and very, very sad, that the Left in the US, now referring to themselves as progressives, has some of the same bad habits as the notorious Left that once dominated eastern Europe and still prevails in much of Asia - namely, the inability to entertain any ideas that deviate from the "correct approach", and a desire to silence and cow anyone with opposing views.
By Penny on
12/31/2009 5:46 PM
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Re: Mackey steps down as WH chairman
You say that he stepped down "as a result" of ctW's asking that he do so. I doubt this very much. Do you have any evidence at all that this is the case? Or is it simply wishful thinking on your part? It would be very foolish indeed for a board to ask its chairman to step down because some obscure group of agitators was unhappy with him.
btw I visited Whole Foods several times in the weeks following the appearance of Mackey's article, and business was booming.
By Terence on
12/31/2009 5:47 PM
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Re: Mackey steps down as WH chairman
btw the artiicle was in the Wall St. Journal, not the NY Times
By Penny on
12/31/2009 5:47 PM
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Re: Mackey steps down as WH chairman
Yes, my bad, the Mackey editorial was the Wall St. Journal. And in response to your assertion that Mackey wasn't pushed out, treehugger.com offered this take: tinyurl.com/yhztf64
By Anna Soref on
12/31/2009 5:57 PM
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Re: Mackey steps down as WH chairman
Thanks, I have read treehugger.com and found no support at all for the assertion that he stepped down because ctW pressured the board.
By Terence on
1/1/2010 10:35 AM
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Re: Mackey steps down as WH chairman
Right, it's difficult to know why he stepped down--a lot of varying views. He was obviously under a lot of pressure though, especially with WF stock down 30 percent over the last five years--http://tinyurl.com/ydezt8n
By Anna Soref on
1/1/2010 10:48 AM
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Re: Mackey steps down as WH chairman
Thanks Stacey, I saw that and want to get my hands on a copy.
By Anna Soref on
1/2/2010 9:09 PM
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Re: Mackey steps down as WH chairman
IMHO, John Mackey has earned the right to comment on health care as WFM offers FREE insurance to team members. Further, WFM team members have a higher average wage and better benefits than the majority of it's competition, including their unionized counterparts. WFM has a culture of inclusion that supports true diversity. And WFM is and has always been very generous with it's philanthropy. John has truly put his money where his mouth is and has consistently done so since the beginning. So, I found it crazy that folks would boycott WFM to support retailers that offer low pay and no benefits/insurance! Oh the irony...
By devon miller on
1/5/2010 10:03 AM
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Re: Mackey steps down as WF chairman
This is a great moment. As a vendor I find their business with vendors has been suffering for some time. If affordable prices are the goal then they ought to pass on the massive discount they get to the actual customers instead of swallowing the discount given them. This organization is predatory at best. As a national partner whom tries to provide great training and support the company ignores it and treats us like the red headed step child, yet gladly takes the huge margin they are given and passes it on to no one or uses it to compensate for the lines that don't sell.
Maybe getting back to the basics like a heart centered customer oriented business will go along way at earning back the respect. Requiring brokers to build out their new stores with no pay I guess is great work if you can get it. These are hard working brokers who are independent business people who work on 100% commission with sometimes 100's of other customers who deserve service as well. I wonder what the IRS would say about this habit. Just a few of the policies they have that the consumers are even aware of.
Namaste.
By Starman on
1/6/2010 7:36 PM
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