Whole Foods announced yesterday that Walter Robb, who has served as co-CEO for the last six years, would no longer serve in that position but will remain as a member of the company's board of directors. John Mackey, with whom Robb has served as co-CEO, will become the sole CEO. The changes will take effect on December 31, 2016.
The announcement came at the same time the company reported fourth quarter results that included some figures below analyst's estimates. For example, comparable store sales fell by 2.6% on a 4.2% store traffic decrease as compared to the same time period a year ago. On the positive side, sales met analyst expectations at $3.5 billion, and were up by 1.7% from the previous year.
Net income increased by 57.1% (to $88 million) as compared to the same period last year.
For 2017, Whole Foods is planning for sales growth between 2.5% and 4.5%, and comps from -2% to flat. 30 new stores are planned in 2017, including six relocations and four new 365 stores.
The company also announced that CFO Glenda Flanagan would retire at the end of 2017. Flanagan has been with Whole Foods for nearly 30 years.
Showing posts with label Walter Robb. Show all posts
Showing posts with label Walter Robb. Show all posts
Thursday, November 3, 2016
Thursday, February 25, 2016
Whole Foods getting flak from analysts over new 365 format
Whole Foods Co-CEO Walter Robb was widely criticized by analysts earlier this month when he outlined strategies for the rollout of the company's smaller "365 by Whole Foods Market" format. According to Whole Foods' website, the new stores, slated to begin opening this year, will offer convenience and everyday low prices on natural and organic products.
"Whole Foods is tilting its growth towards an unproven, discount format that appears to be directly aimed at a strong competitor, Trader Joe's," said Wolfe Research Managing Director Scott Mushkin. "Trader Joe's has been in the business for roughly a half century, does the discount treasure-hunt format exceptionally well, and is private, meaning it doesn't have to answer to public equity investors each quarter."
Mushkin added that Whole Foods' decision to reduce store labor to fund price investments has already had a negative impact on store conditions, and was critical of the company's decision to maintain earnings by buying back stock.
Many analysts probably also don't like Whole Foods' new program called "Friends of 365," where approved suppliers and vendors can set up shop in the 365 stores. The new chain's website says shoppers may see businesses such as record shops and tattoo parlors inside 365 stores in order to appeal to younger customers.
During a conference call with investors, Whole Foods said they have 13 leases signed for the new format, with the first 365 stores set to open in California, Oregon and Washington.
"Whole Foods is tilting its growth towards an unproven, discount format that appears to be directly aimed at a strong competitor, Trader Joe's," said Wolfe Research Managing Director Scott Mushkin. "Trader Joe's has been in the business for roughly a half century, does the discount treasure-hunt format exceptionally well, and is private, meaning it doesn't have to answer to public equity investors each quarter."
Mushkin added that Whole Foods' decision to reduce store labor to fund price investments has already had a negative impact on store conditions, and was critical of the company's decision to maintain earnings by buying back stock.
Many analysts probably also don't like Whole Foods' new program called "Friends of 365," where approved suppliers and vendors can set up shop in the 365 stores. The new chain's website says shoppers may see businesses such as record shops and tattoo parlors inside 365 stores in order to appeal to younger customers.
During a conference call with investors, Whole Foods said they have 13 leases signed for the new format, with the first 365 stores set to open in California, Oregon and Washington.
Friday, July 3, 2015
Whole Foods overcharging is "worst case of mislabeling" inspectors have seen
Not surprisingly, the New York Daily News story about alleged overcharging by Whole Foods started off with "Rip-off on aisle four."
The newspaper reported that New York City officials launched a probe of Whole Foods after investigators claimed the eight city stores routinely overcharged customers for groceries during dozens of inspections dating back to 2010.
According to the story, inspectors from the Department of Consumer Affairs weighed 80 different types of items and found that every label was inaccurate, with many resulting in customers being overcharged.
Although Whole Foods wasn't the only offender, it was the most egregious one, according to Consumer Affairs Commissioner Julie Menin.
Initially, Whole Foods said they disagree with the city's findings, but in a video released this past week by Whole Foods Co-CEOs John Mackey and Walter Robb, the two execs admitted to mistakes, saying that some customers had been accidentally overcharged for sliced fruit, fresh squeezed juices and sandwiches by workers who made errors. They claimed that mistakes were made both in the customer's favor and in the store's favor.
Commissioner Menin said her inpectors described the mistakes as "the worst case of mislabeling they have seen in their careers," and said they found only a few instances where customers actually benefited from underpriced food.
The newspaper reported that New York City officials launched a probe of Whole Foods after investigators claimed the eight city stores routinely overcharged customers for groceries during dozens of inspections dating back to 2010.
According to the story, inspectors from the Department of Consumer Affairs weighed 80 different types of items and found that every label was inaccurate, with many resulting in customers being overcharged.
Although Whole Foods wasn't the only offender, it was the most egregious one, according to Consumer Affairs Commissioner Julie Menin.
Initially, Whole Foods said they disagree with the city's findings, but in a video released this past week by Whole Foods Co-CEOs John Mackey and Walter Robb, the two execs admitted to mistakes, saying that some customers had been accidentally overcharged for sliced fruit, fresh squeezed juices and sandwiches by workers who made errors. They claimed that mistakes were made both in the customer's favor and in the store's favor.
Commissioner Menin said her inpectors described the mistakes as "the worst case of mislabeling they have seen in their careers," and said they found only a few instances where customers actually benefited from underpriced food.
Thursday, June 11, 2015
Whole Foods to open "365 by Whole Foods Market" stores
Whole Foods has been talking about its new, smaller format since May, and rumors have been swirling about what they will call the chain. It was reported today that Co-CEO Walter Robb told the Associated Press the name will be "365 by Whole Foods Market," which reflects the name of their house brand, "365 Everyday Value."
According to Robb, the house brand may dominate the shelves, but they will also carry other items, including national brands. He explained that the new format is inspired by younger generations and intended to appeal to those who want a quick, convenient way to shop.
Jeff Turnas, newly appointed president of the 365 chain, said he envisions customers visiting the 365 stores during the week when they want a quick shopping experience, and going to Whole Foods when they have time for bigger shopping trips.
Whole Foods plans to open five to 10 of the 365 stores around the country next year. Ultimately they believe the store count will match Whole Foods', which currently has more than 400 locations.
According to Robb, the house brand may dominate the shelves, but they will also carry other items, including national brands. He explained that the new format is inspired by younger generations and intended to appeal to those who want a quick, convenient way to shop.
Jeff Turnas, newly appointed president of the 365 chain, said he envisions customers visiting the 365 stores during the week when they want a quick shopping experience, and going to Whole Foods when they have time for bigger shopping trips.
Whole Foods plans to open five to 10 of the 365 stores around the country next year. Ultimately they believe the store count will match Whole Foods', which currently has more than 400 locations.
Sunday, May 10, 2015
Whole Foods to launch value-focused format
It was widely reported last week that Whole Foods plans to launch a new value-focused format that will be "unlike anything that currently exists in the marketplace," according to Co-CEO Walter Robb.
Robb added that the company has already begun negotiating leases, is building a team to focus exclusively on the new concept, and expects a fairly rapid expansion.
According to Co-CEO John Mackey, "We think a streamlined, hip, cool, technology-oriented store that has lower capital, perhaps a little less labor cost and lower prices is going to be very, very attractive to that millennial generation, though it will still have the Whole Foods quality standards."
Later in the call, the company reported that average weekly store sales are exceeding $720,000, and that stores are still highly profitable and producing strong returns on invested capital.
Robb added that the company has already begun negotiating leases, is building a team to focus exclusively on the new concept, and expects a fairly rapid expansion.
According to Co-CEO John Mackey, "We think a streamlined, hip, cool, technology-oriented store that has lower capital, perhaps a little less labor cost and lower prices is going to be very, very attractive to that millennial generation, though it will still have the Whole Foods quality standards."
Later in the call, the company reported that average weekly store sales are exceeding $720,000, and that stores are still highly profitable and producing strong returns on invested capital.
Monday, March 2, 2015
Whole Foods reaches records sales in first quarter
Whole Foods announced last month that it had a record first quarter, with sales reaching $4.7 billion. That sales figure amounts to average weekly sales per store of $724,000, or sales per gross square foot of nearly $1,000.
Co-CEO Walter Robb said the strong numbers were due to its customers' positive response to the company's strategic initiatives along with improving consumer confidence. The strategic initiatives cited include the "values matter" television and print campaign, the 15-city partnership with Instacart, digital technologies like Apple Pay, and a test of lower pricing in select markets.
Whole Foods also said it expects to open between 38 and 42 stores this year, including relocations.
Co-CEO Walter Robb said the strong numbers were due to its customers' positive response to the company's strategic initiatives along with improving consumer confidence. The strategic initiatives cited include the "values matter" television and print campaign, the 15-city partnership with Instacart, digital technologies like Apple Pay, and a test of lower pricing in select markets.
Whole Foods also said it expects to open between 38 and 42 stores this year, including relocations.
Tuesday, May 6, 2014
Whole Foods to relocate from North Wales to Lower Gwynedd
Whole Foods announced today that it would close its North Wales, PA store and open a new, larger store in Lower Gwynedd, PA. The target date for the new store, to be located in Stoltz Real Estate Partners' Springhouse Village Shopping Center, is late 2015.
Whole Foods currently operates 379 stores but expects to reach 500 sometime in 2017. The company recently said it believes it could have as many as 1,200 stores before their growth is complete. Sales in 2013 were $13 billion.
Although many high-income suburban locations like Plymouth Meeting and Lower Gwynedd still warrant 45,000+ square foot stores, Whole Foods has been in the news recently for its inner-city and smaller format stores.
Historically the company selected locations with a large number of college students, but now they are fine with population density of any kind, regardless of the income levels. New stores in Detroit and New Orleans are supporting that theory, and Newark and inner-city Chicago are next.
Whole Foods is betting on a presence in less populated markets as well, but like their inner-city locations, they are often choosing to open smaller stores. In fact, they have reduced the average store size in recent years without slowing sales growth. According to Northcoast Research Analyst Chuck Cerankosky, sales per square foot at Whole Foods have increased as the store size has decreased.
"They made a very smart change in strategy," Cerankosky said. "The stores are a more productive size, and it brings their strongly branded, fresh-food focus to more markets."
As Scott Davis wrote in Forbes.com last week, Co-CEO Walter Robb wants the company to deliver on its "promise of becoming accessible to the masses, helping America get healthier and hopefully integrating its purpose into the lives of those who never knew that Whole Foods was a brand for them."
Whole Foods currently operates 379 stores but expects to reach 500 sometime in 2017. The company recently said it believes it could have as many as 1,200 stores before their growth is complete. Sales in 2013 were $13 billion.
Although many high-income suburban locations like Plymouth Meeting and Lower Gwynedd still warrant 45,000+ square foot stores, Whole Foods has been in the news recently for its inner-city and smaller format stores.
Historically the company selected locations with a large number of college students, but now they are fine with population density of any kind, regardless of the income levels. New stores in Detroit and New Orleans are supporting that theory, and Newark and inner-city Chicago are next.
Whole Foods is betting on a presence in less populated markets as well, but like their inner-city locations, they are often choosing to open smaller stores. In fact, they have reduced the average store size in recent years without slowing sales growth. According to Northcoast Research Analyst Chuck Cerankosky, sales per square foot at Whole Foods have increased as the store size has decreased.
"They made a very smart change in strategy," Cerankosky said. "The stores are a more productive size, and it brings their strongly branded, fresh-food focus to more markets."
As Scott Davis wrote in Forbes.com last week, Co-CEO Walter Robb wants the company to deliver on its "promise of becoming accessible to the masses, helping America get healthier and hopefully integrating its purpose into the lives of those who never knew that Whole Foods was a brand for them."
Friday, January 3, 2014
Whole Foods opening in big and small towns alike
Last month Whole Foods opened a store in Brooklyn, NY (population 2.6 million) and a store in Lincoln, Nebraska (population 260,000). This strategy - opening in large metro areas as well as small ones - is no coincidence, and Whole Foods says that nearly one-third of its new stores will open in small cities like Lincoln.
When Whole Foods went public with its intention to open stores in what The New York Times described as "places where it was assumed that consumers have never heard of kale and wouldn't dream of spending $6 for a pound of humanely raised pork," investors scoffed, traditional supermarkets snickered and analysts expressed doubts.
Fast forward a couple years, and analysts say the strategy appears to be working (just look at the stock price!)
"Farmers' markets were nonexistent 10 years ago in most places, and no one was talking about local food," said Whole Foods Co-CEO Walter Robb. "There is a whole new revolution going on around food now that isn't limited to the coast. Consumers know more about food, where it comes from, what's in it and the connection between diet and health."
Fast forward again to dinner at my house tonight, where I will disappoint my wife by telling here there's no chance Whole Foods is coming to Harleysville (population 10,000).
When Whole Foods went public with its intention to open stores in what The New York Times described as "places where it was assumed that consumers have never heard of kale and wouldn't dream of spending $6 for a pound of humanely raised pork," investors scoffed, traditional supermarkets snickered and analysts expressed doubts.
Fast forward a couple years, and analysts say the strategy appears to be working (just look at the stock price!)
"Farmers' markets were nonexistent 10 years ago in most places, and no one was talking about local food," said Whole Foods Co-CEO Walter Robb. "There is a whole new revolution going on around food now that isn't limited to the coast. Consumers know more about food, where it comes from, what's in it and the connection between diet and health."
Fast forward again to dinner at my house tonight, where I will disappoint my wife by telling here there's no chance Whole Foods is coming to Harleysville (population 10,000).
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