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Opportunities
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Increasing Demand
for Organic Products
- Sales of organic food grew by 5% in 2010, whereas
the overall food industry only grew by 2%
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Increasing popularity of
private labels will improve margins
- In 2010, 20% of the food sales was private label.
WFM private label sales (brand "365") was 11% of revenue
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Trends support increased
demand for food products
- 92 % of grocery shoppers consider home-cooked meals healthier. With the economic downturn
86% of budget-minded families cooked meals at home.
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Threats
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Intense competition may have
an adverse effect on profitability
- More traditional supermarkets are adding organic and
healthy foods to their product portfolio, depressing margins.
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Stringent regulations
impose additional liability
- Several federal agencies regulate food safety. WFM additionally
has to contend with USDA labelling guidelines on "organic" foods.