Whole Foods-Not So Earth Friendly Anymore

[ginael]

Have to get this off my chest, and to know if anyone else out there feels the same way. Years ago when WF acquired Wild Oats, it garnered the reputation as a small, boutique-style market. This chain drew crowds because of their organic food selection, gourmet cheese, high-quality seafood. Not to mention it came from a grass-roots philosophy, and to this day maintains a facade of being earth-friendly.

If you visit a WF in Arizona, though, you will be shocked, and I think dismayed, to find 20,000 sq. ft. stores with such wasteful options such as several different chocolate stations, huge aisles of overpriced clothing, several salad bars, etc. In this day and age of "earth friendly" movement to conserve energy and waste less, how can this company justify such behemoth stores?

I live in San Diego now, but when I visit my hometown of Phx and drive by two of these types of WF, I see fewer and fewer cars. I wonder if it is not just the sky-high prices of WF that is beginning to turn people off. Let's hope Trader Joe's does not go this route. I just find it disgraceful.

[ccbweb]

Whole Foods acquired Wild Oats starting in Feb 07 and completed the acquisition in August 07.

Perhaps if people didn't shop at such behemoths they wouldn't exist.

The average Kroger runs about 65,000 sq feet. The average Safeway about 45,000 sq feet.

The average Whole Foods is actually about 35,000 sq feet. The store in Austin is 80,000 sq feet. Wild Oats markets average 20-35,000 sq feet.

[ginael]

You've done your research. Does the fact that people continue to shop there really justify the egregious use of space, electricity, and redundant product placement? Don't issues have to be raised for changes to be implemented? Have you gone into a new WF? Check it out. I defy you to not shake your head in dismay.

[ccbweb]

My question is why phrase the question so narrowly. Why single out Whole Foods (which has fewer than 300 stores) and not question the enormity of the Krogers (almost 2500 stores), Safeways (more than 1700 stores) or ....Wal-Mart Supercenters of which there are almost 2500 in the US and which average almost 200,000 sq feet.

Whole Foods stores are, on average, far smaller than many of the supermarkets with which it competes. Whole Foods does have a few very large stores, but seems to have shied away from continuing to open those (the brand new store in Richmond, VA is about 35,000 sq feet).

I don't think that Whole Foods is a perfect company or that it doesn't sell its share of food for which I have no purpose....but I'm far less offended by it than I am the stuff that populates the aisles of the average supermarket in the US that is also 2 or 3 or 15 times the size of a Whole Foods. Calling for change is admirable and good, but simply wagging one's finger at one comparatively very small company and not speaking to the larger issues misses a key point.

[ginael]

Take another look at my title.

My problem with WF is its insistence on being an earth friendly store. Von's (not sure what your equivalent is wherever you reside) seems to stay about the same size. I am not a fan of Walmart Supercenter. At least that company doesn't profess to be progressive or "green".

WF prices are astronomical, with the explanation being that we as a consumer have to pay the price to clear our conscience. I do not feel good about paying that much when these stores are liberal in their space, energy bills, or wastefulness.

[ccbweb]

Given the nature (and lack of) tone on message boards I'm going to state that I don't intend to have an argumentative tone in any negative sense. I agree that most of these stores (Whole Foods and otherwise) are huge and are selling things that aren't necessary in packaging that isn't necessary and that it could all be done far more efficiently and in way that helped our environment and neighborhoods and cities more.

In my experience, Whole Foods is not on balance significantly more expensive than the many (many) supermarkets/grocery stores in my area. There are decidedly more expensive products in some cases, but my wife and I can do our regular shopping there for within a few dollars of what it costs at other area options.

As for the green claims, it is an interesting question. Is it still a problem if Whole Foods does engage in more practices than other stores that are "earth friendly?" That is, is it an earth friendlier store that Von's (Safeway is the equivalent...and may be the same company actually...not sure about that)? It seems that Whole Foods does engage in some sorts of practices (Marine Stewardship Council for example) that are beneficial or responsible.

I'm sticking on this thread because I'm fascinated about all of this, honestly. We seem to be more likely to call out small companies or companies that aren't being what we think they ought to be than we do the incredibly large companies where any change would be enormous.

[ferret]

Easy to be "earth friendly" with one or a few locations but once you get into the hundreds (or even tens) you necessarily have to make compromises -- both as retailer and consumer. Truly "earth friendly" is sourcing everything locally and not shipping in beverages and products from overseas -- but the consuming public wants "new" and "different" and "unusual" as well as the best produce options during non-growing seasons in the U.S. In addition, Whole Foods has lots of infrastructure to support now, so apparel and other items are just another potential source of income. I think Whole Foods does a good job relative to other large retailers -- and your expectations are unrealistic.

[cheesecake17]

I noticed this also. The WF I go to in Manhattan has a gelato/sorbet bar, a sushi counter, chocolate bar, and a roasted nut station. Not to mention that the salad bar section takes up a big chunk of the place. They even have a second floor that's mostly seating for people buying salad bar items. Recently, I've been avoiding WF- they have a lot of interesting products, but it's just soo expensive.

Trader Joe's is much less expensive, has equally interesting products, and doesn't have such gigantic stores. While it's not my go to place to shop, I love to go there and walk around just to pick up a few unique items.

[MandalayVA]

I live in Richmond and can say that yes, the Whole Foods there (actually it's in Short Pump, about 15 miles outside the city proper) is huge. It doesn't have a clothing section but it has a MASSIVE food bar--I won't say salad because that makes up very little of what's available. Ironically there's a new Trader Joe's roughly a third of a mile away. WF offers more variety and I've found their prices to be on par with Ukrop's (local chain) and occasionally beating them on certain items. I just wish it was closer to my house; it's 22 miles away.

[Cathy]

Their website says they "care about the environment" and sell the "highest quality organic and natural foods". Nothing about being earth friendly.

Truth in advertising.

People are paying attention and are willing to pay for quality but not for someone's high rent. This is happening at grocery stores as well as restaurants. Fewer people care about the view as opposed to paying for good food. Finally people are paying attention.

[ccbweb]

I think you're right on target overall, Cathy. Although I don't know that I agree entirely with the one idea that people are willing to pay for quality. I think many are, certainly, but I think that a lot of folks are willing to pay what they think they ought to pay for some such thing and cry foul if something costs more even if there are reasons related to the thing itself. (That is, not having to do with rent but having to do with an early frost hurting an orange crop and driving the price of oranges up.)

[Cathy]

I guess I meant people are willing to pay a little more for certain items if they have tried the lesser priced ones and know they won't like or eat them, ccbweb.

Some generics do not taste good at all. Tomatoes vary in price as well as how they smell and sometimes I have a craving and would rather have a slice of a tasty Heirloom (that I can smell the freshness of) than a mealy plum tomato (that has no smell) in a sandwich. I hate having to pay so much more, but know until the ones in my garden come in, I would rather eat a little of something I crave and like than to waste money and/or calories on something I don't like.

If the oranges are good, I may or may not pay for them, depending on other choices available (other fruits on sale or frozen orange juice which would satisfy a craving).

We are now living in a world where most items are available 12 months a year instead of seasonally and I think people are spoiled by not having to be patient and wait for crops to come in along with the quality of freshness that accompanies those items.

Being the age I am, I know patience and planning ahead pays off and adapt to what is on sale. stocking up and dealing/splurging with my cravings when I need to. I really don't complain, because I know things could be worse.

[Lixer]

Whole Foods offsets 100% of their energy use by purchasing wind power credits. Many of their stores are equipped with solar panels which can provide up to 24% of a store's power. Sounds pretty green to me?

[mlgb]

Yes, "years ago" was last year. What small boutiquey Whole Foods have you ever been too? I can't remember one.

You're quite lucky that Henry's in San Diego was spun off from Wild Oats. Now there's a nice store with reasonable pricing and good selection of organic products and high quality seafood. Wish there was one closer to my home.

Trader Joe's generally has pretty poor produce and fresh meat/seafood in general. I prefer the new small-format Fresh & Easy stores that are opening up in California. There are quite a few in Phoenix, too.

[rworange]

Henry's ... yuk ... but that discussion should be on the California board.

I was never a fan of Wild Oats either which was too chew on brown cardboard-tasting healthy stuff.

And the fact is Wild Oats went under. It had no mass appeal. So if Whole Foods attracts a larger audiance who start thinking organic and earth-friendly isn't that better than a bunch of strores that the mainstream public won't set foot in?

Even Trader Joe's is more than I will usually deal with. I like TJ's organic and natural food and the fact that I don't have to worry about a chemical list on the cans. But I hate the disorganized cramped stores. That keeps me out and going to a more mainstream store like Safeway. That and the lousy produce.

There are a few mega Whole Foods in the SF Bay Area. And each of these, as do most Whole Foods... sell very local products, giving small businesses a wider audiance than any other store.

As to the salad bars and prepared foods, if you eat in store there are ceramic bowls to eat in so that packaging isn't wasted ... and Wild Oats wasnt' that container-friendly, IIRC.

That being said, I don't shop much at Whole Foods these days or actually even in the past. The prices are off the wall, the produce is better at farmers markets. It actually bugs me that I couldn't get 'normal' products there and had to make a stop at Safeway in addition to Whole Foods ... the cat never bought into healthy and wouldn't eat their food or use their litter.

[lamster]

100% agree with rworange. TJ's is way too cramp and their produce goes bad within days. I think Whole Food is doing what they can, 100% wind power, etc... but the prices and limited selection eventually mean that I have to make a stop at Safeway too. At the end of the day, I wish that the larger grocery chains tried to incorporate as many green things at Whole Foods, so in that sense, Go Whole Foods!

[Davwud]

I went to WF once. I was taken aback with sticker shock and found it had an air of trendiness to it. It's in a rather trendy/elite part of town and it sure had that vibe.

DT

[ccbweb]

"An air of trendiness"...."a trendy/elite part of town"...."that vibe".....

In all seriousness: what does all of this mean?

[Davwud]

It seemed more about making money that being an earth friendly place. Like they were using the "Eco friendly" and "Organic" angle to extract money from people.

DT

[chowser]

Whole Foods bought out two of my favorite stores, small chains, in the past--Bread and Circu and Fresh Fields. Both had more of a farmers market feel to them. I get overwhelmed in their new megapolises and can rarely find what i need or get help to find it. But, I do go to the store that used to be Fresh Fields. At least it's smaller and manageable. I even use my Fresh Fields bags though the store has been gone over a decade.

[mlgb]

There was quite an interesting article regarding WF in Monday's Wall Street Journal.

Quoting an analyst "It's kind of the wrong time, wrong concept."

The company is slashing store openings for next year and suspended its quarterly dividend. In September, WF walked away from a signed lease in Seattle because their sales projections no longer justify a 60,000 square foot store. (The article says that WF instead wanted a 40,000 sq.ft. store). Needless to say, the developer is suing them.

As far as Wild Oats is concerned, apparently the FTC is still trying to undo Whole Foods acquisition on anti-trust grounds (WO did not "go under", they were bought for some $500 million and change). Apparently the matter has been sent back to the district court.

If you can wade through the latest ruling there are lots of tidbits about Whole Foods' determination to eliminate the competion. The Earth Fare store in Chapel Hill is mentioned. Also revealing is what WF called their study of potential behavior of former Wild Oats customers... "Project Goldmine."

http://www.ftc.gov/os/caselist/071011...