Whole Foods Is Competing With Traditional Stores Like Never Before
The Austin-based chain — once jokingly known as "whole paycheck" — is increasingly benefiting from economies of scale, meaning that things get cheaper when it buys in larger quantities, as Kyle Stock points out in Bloomberg Businessweek.
With lower prices and more sales, Whole Foods has been able to penetrate smaller or less affluent cities, like South Bend, Indiana and Detroit.The brand still has a ways to go, with 349 stores compared to 1,678 for Safeway and 2,435 for Kroger, but it's getting there.
The stock market agrees. Whole Foods stock trades at a 38.35 price-to-earnings ratio, compared with
"If we can be relevant on price, we can get to the quality conversation that we really want to have," co-CEO Walter Robb told Fortune.