Whole Foods Market has a strong emphasis on perishable foods, designed to appeal to natural and organic food shoppers. It aspires to become an international brand synonymous with natural and organic foods, and the highest quality food retailer in every community in which it is located. While other large grocers struggle and face uncertain futures, Whole Foods Market has been seeing revenue growth.
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Whole Foods Market's growth strategy resulted in a sales compound annual growth rate (CAGR) of 26% during 1991–2011. The company faces intense competition from other organic grocers and traditional retailers, which could cause loss of sales, reduction in margin, or greater operating costs.
While the overall US food industry contracted in 2011, the organic foods market increased by 9.5%, reaching $29.2bn. Private label brands accounted for around 17.4% of US food product sales in 2010. Whole Foods Market's total private label sales accounted for approximately 11% of its retail sales in FY2011 and FY2010.
Your key questions answered
Which is the largest organic food retailer in the world?
What are the opportunities and threats in food retailing? What is the size of the US food market?
What is the market share of private label products? Is Whole Foods Market positioned to continue to thrive?