Wednesday, April 12, 2017

Whole Foods has a big, basic problem it desperately needs to solve

Image result for whole foodsWhole Foods’ challenges are wide-ranging, but one of its biggest hurdles is attracting more customers. According to data from Kantar Retail’s ShopperScape survey, the organic grocer had a 7 percent penetration rate back in 2009 when it had some 273 stores. In other words, 7 percent of respondents in Kantar’s customer survey said they shopped at Whole Foods on a monthly basis. Since then, the chain has been on a breakneck march to open more stores, its fleet now numbering more than 430 locations. So what is its market penetration now, with all those added stores? Just 8 percent, according to Kantar. It’s practically unchanged.

That means its major capital investments in building those stores — and the ongoing expense of staffing and maintaining them — have not done much to grow its share of devoted shoppers.. . . more

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