Whole Foods Competitor Analysis Paper

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Competitors analysis Whole Foods Market is facing competition not only from rival organic chains but also from traditional grocers with their own organic brands. Moreover, due to saturation in higher income areas, WFM is beginning to expand to less wealthy neighborhoods in which the company enters into direct competition with mass market retailers. Trader Joe’s Company, the chain of specialty grocery stores, owned by Aldi Nord is perhaps the most similar supermarket to Whole Foods. In may 2014 Trader Joe’s had a total of 418 stores, over half of them concentrated in California and along the mid-to-upper East Coast. Like Whole Food’s the company has a large selection of private label gourmet and organic food items, but usually priced lower.…show more content…
About 60% of natural and organic foods are sold by conventional grocery stores. Walmart, the largest grocer in the U.S., has been actively pursuing to increase its line of organic products and currently carries 1,600 organic grocery items. The company aims to disrupt the organic food market by bringing more accessibility to organic products lowering the price and thus increasing the number of people able to purchase them. In April 2014 Walmart announced to team up with Wild Oats, to sell their organic products. They will be priced at least 25% below those of the organic brands Walmart…show more content…
The largest of these acquisitions in terms of price and square footage is represented by the merger-acquisition of Wild Oats in 2007. Wild Oats, founded in 1987, experienced rapid growth in the subsequent years and, at the time Wild Oats merged with Whole Food’s Market, the company operated 109 stores in 23 states and Canada being the second largest organic foods supermarket in the U.S. For Whole Foods it was a way to solidify their leadership position, compete against much larger rivals (most of them not dedicated natural- and organic-foods supermarkets, such as Walmart) and moreover gain entry into 15 new markets and 5 new states. But, due antitrust concerns raised by the Federal Trade Commission a final settlement announced in march 2009 forced Whole Foods to sell the

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