Thursday, July 20, 2006

Whole Foods - a new paradigm for food stores

I am not an "organics zealot". In fact, for many years I have consciously avoided organic food as over-priced and low quality (at least in appearance). Therefore, I was indifferent to the opening of the first Whole Foods in Chelsea-Manhattan. However, I have completely changed my mind and now view Whole Foods as a paradigm shift in food shopping equivalent to that of Starbucks on coffee shops.

Whole Foods markets are large, modern stores that combine the best of traditional grocery and 'gourmet' stores. They are committed to organic and natural foods including fresh fruits, vegetables and meat and fish. They also have a large, high quality cheese selection. An area where they are exceptional is prepared foods. This includes a Sushi Bar, a Cafe and a Salad Bar in addition to the typical prepared foods counters. There is also a large, attractively laid out area with tables. Beyond the physical plant, the stores are distinguished by employees who are knowledgeable, courteous, friendly and committed to the mission of the company. This has been true in every store I have visited (Florida, Texas and Omaha in addition to NY).

I thinkWhole Foods offers a substantial improvement to other food stores because of the way it combines an outstanding shopping experience with a clear and easily understood commitment to natural foods, grown in a way that minimally impacts the environment. This is combined with a commitment to buy locally to enhance freshness. and an educational outreach program intended to promote healthful eating through information. There are classrooms in every store!

Overall, I believe Whole Foods reflects a real change in peoples expectations about how food is marketed. Wal-Mart and the traditional supermarkets are reacting and will provide more choice in where, and how, foods are procured. I believe Whole Foods advantage is sustainable, however, because it reflects a true commitment to values that are shared by a growing number of americans. I also believe that, while competition for traditional groceries will increase Whole Foods focus on higher value prepared foods will continue to command a premium, especially among more affluent shoppers. The stores also offer very attractive eating facilities - a Sushi Bar, a Starbuck-like Cafe (with better food!) and a cafeteria. It will be exceptionally difficult for other stores to duplicate the quality of these offerings. For example, Christina and I will go there for lunch because they have better salads (quality and variety) than almost anywhere else. We then usually do our shopping and have it delivered while we're out.

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