WHOLE FOODS MARKET
January 28, 2015
SUBMITTED TO: SUBMITTED BY:
PROF. JAMES FARMER HARNEET K SIDHU . (300801662)
Question 1- Are there any particular strategic reasons for Whole Foods Market to use large scale (large square footage) stores to sell organic and natural ...view middle of the document...
As customers are getting more health conscious ,so they are buying natural and organic products through which that companies can raise the profit margin.
WFM sold premium products at premium prices.
In 2007-2008 the company’s buyers began to place stronger emphasis on buying directly from producers and manufactures.
The WFM generated cash flows of $410.8 million in fiscal 2005 to $452.7 million in fiscal 2006.
During period of slow economic growth the WFM maintain its units sales volume and profit margin as in 2005, 2006 and 2007 the gross margin average of all store was 35%, 34.9%, and 34.8% respectively.
In recent years quarters WF capital expenditure for store expansion had exceed its cash flow from operation purchasing total debt to $929 million.
Question 3- Considering that Wal-Mart is now a significant competitor of Whole Foods Market, in the retail super market industry, how can Whole Foods Market significantly differentiate itself from Wal-Mart especially when one considers that Wal-Mart is now...