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Whole Foods will return to health food roots
December 21,2009
  

Whole Foods Markets will return to its health food roots, trading chocolate fountains for nutrition classes and more detailed labeling.

John Mackey, founder and CEO of the Austin retailer, told Associated Press food writer Sarah Skidmore, “Whole Foods has a megaphone that almost nobody else does” to get a healthy-eating message across.

“There have been these two dominant values driving our products over the years,” Mackey told the AP. “One is food as health and the other one is food as indulgence. Those have battled, you might say, for the soul of Whole Foods.”

In 2010, Whole Foods will start providing nutrient-density labeling, add private label products for special diets and underwrite nutrition research. In a pilot program, it offered voluntary health improvement programs to employees. Those who post the biggest changes to basic health metrics such as cholesterol will earn bigger store discounts.

“Our team member base—they smoke as much as, or more [than] the population at large. Their weight is not thinner than the population [as a] whole. We sell a lot of healthy food, but that doesn’t necessarily mean the team members know how to eat better,” Mackey said.

In another interview last week with the Austin American-Statesman, Mackey said the downturn, which turned same-store sales negative for the first time in the chain’s 31-year history, forced Whole Foods to reconsider a business plan that “has been built upon continuous growth.”

Store openings were halved from a planned 30 to 15. Costs were cut and staffing was reduced by 5 percent, while Whole Foods raised $425 million from private equity firm Leonard Green & Partners in order to provide a cash cushion against falling sales and a high debt load.

“It’s unfortunate for us that we had made the decision to acquire Wild Oats when we did,” Mackey said. “We bought that company at the peak before everything came crashing down, or we obviously would have paid less.”

 

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Recent Comments
I hope this is true, in my region (Northern CA) we are seeing WFM move away from Organic products in favor of GMO products in the Bakery dept. I would seriously suspect this to be further greenwashing from them.
Posted By: Josh Levine on December 23,2009
Well it's about time Whole Foods is turning to the direction of NATURAL FOODS instead of the opposite direction.If they intend to be an example...and not just a fancy supermarket,,,they have to 'clean up' the products they sell.And, it is helpful to have employees that are into the food as well....they can be so much more helpful to customers. The NATURAL FOODS industry as we know it now has veered away from it's idealistic beginnings in the early 70's.Time to get REAL and go for all the organics we can and set an example to people how eating better IS better for you and especially for our kids. It'll be good to see WF go GREENER!
Posted By: Joel Silver on December 23,2009
Anyone who thinks Whole Foods has any other consideration the the bottom line is fooling themselves. When have we heard the phrase "getting back to our roots?" It is usually uttered by businesses that have lost the reason for being in business in the first place. Whole Foods tried to become the Wal-Mart of the health food universe. They use some of the same tactics with their vendors to extract additional back end discounts so they can show continulusly increasing profits to their shareholders. When is the buying public going to stop treating treating Whole Foods as if it is something other than what it is, an over-priced food store.
Posted By: Larry Smith on December 24,2009
Well, duh!!!! How long did this take for you guys to finally figure it out??? You do have a huge megaphone, so you should be blasting that thing in the direction of being more health-oriented and green-minded. Thank god, FINALLY, you get it!
Posted By: K S on December 24,2009
As a former employee and one who has was raised out of a health food store in the 60's and started in it 1988. I have a lot changes for the bad for the status quo. There voting on team memember can become clickist and employee handbook is the size of a novel. Too much do as I say not as I do. People really need to start live the lifestyle they put forth.
Posted By: greg ashby on December 28,2009
Back to the be nice. They can start themselves. There policy of voting team members can be clicky and there employee handbook is the size of War and Peace. And yes it would nice for them to walk to talk. I have been doing it in this industry for 22yrs
Posted By: greg ashby on December 28,2009
One of the things that will help to make Whole Foods profitable again is to return to their roots in having staff that also are educated in the products they sell. When they started becoming just an upscale market, we noticed a change in the people who staffed the stores. No longer did we see a staff who loved what they did for a living, but instead a group of people who would have been just as happy working anywhere for the pay. That turned myself, as well as many I know in returning to our local supermarket chains who were now carrying the healthy and organic items I shopped for. It's one thing to sell great products, but another to provide great customer service to justify spending that much for groceries. I wonder what the chain will do to bring back all of the customers it has already lost?
Posted By: Aaron Russell on December 28,2009
 

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