Wednesday, August 19, 2015

Retail Strategy: Whole Food Market Launches New Store Concept To Counter Attack Competition In The Organic Food Market

Whole Food market is in a very interesting position. It is considered as one of the fastest growing retailer in the US, thanks to its unique concept of organic, healthy and sustainable growth strategy. But lately, US competition has awaken with appetite for market share. This is the reason why Costco has recently published organic sales turning the company into the market leaderKroger’s natural and organic Simple Truth line has become a $1 billion-a-year brand.  And Whole Food Market growth is slower than the market's growth.

What is true though is that more and more competition is entering the segment, making the products more available, cheaper, and therefore reinforcing the penetration rate and the sales (which could be on the long run a good thing for Whole Food Market to get a new clientèle).

Therefore Whole Food Market needed to set a new strategy to fight against the new competition. That's the reason why Whole Food Market is launching a new store concept called 365. Smaller stores, in downtowns, to attract new customers and develop its store network. 

Now will it be enough? I believe it is interesting to see Whole Food Market focusing on downtown smaller units. In France, this is where the organic retailers are thriving. Also, I believe there is a lot to be done on the Internet, in order to adress to a clientèle that is accustomed to the E commerce. But maybe (and probably) Amazon is around the corner...