1. Julie B. Davis Sarah Hare William Ludwig
Christopher Hernandez Sung Min Lee

2. Facts & Figures Established in 1980 200 stores in N. America & the UK
Team Members: 54,000
Distribution Centers: 9
Regional Bake Houses: 10
Commissaries: 5

3. Facts & Figures (cont’d)
Nasdaq Symbol: WFMI
2008 Total Revenue : $7,953.91m
2008 Net Income: $114.52m
2007 Total Revenue: $6,591.77m
2007 Net Income: $182.74m

4. Critical Issue Expansion by 2010
Annual revenue of $10 billion
Operating 300+ stores
Maintaining quality & reputation of Whole Foods

5. Relevant Facts Growing demand for organic and natural goods
Slim supply of organic foods
Locations based on affluent consumers
Variety of private labels
Rapid growth & large stores

6. Recommendations Increase Whole Foods Market’s presence in Europe
Develop smaller, discount supermarkets
Reevaluate target demographic
Reorganize the traditional store layout
Stock 365 Everyday Values label
Rename discount stores

7. Recommendations Reevaluate supply chain management
Proactive support for U.S. organic farming
Discontinue purchasing from small, local farmers
Continue expansion in Europe

8. Threats & Weaknesses Intensity of rivalry among established firms
Strong bargaining power among suppliers
Decreasing utility in luxury goods

9. Strengths & Opportunities
Early entrant positioning
Strong bargaining power as a buyer
Increase in demand & utility for organic and natural Food

10. Impact Analysis Simplifying the Whole Foods experience
5% organic grocer market share increase
2% traditional grocer market share increase

11. Impact Analysis (cont’d)
Simpler stores = simpler costs
Small stores cut stocking costs by over $375,000
Cut labor and maintenance costs
Increase profits 8% initially

12. Pro Forma Outlook Metric 2006 2007 2009 2010 Sales Growth 11.0 % 7.1%8%
15%
Market Share
Unknown
35%
40%
42%
Total Revenue
$5.6 B
$6.6B
$9.5B
$11.9B
Number of Stores
186
207*
247*
298*
*Excluding mergers & acquisitions
**2008 Market Share Unknown

13. Potential Weaknesses of Recommendations
Prearranged leasing agreements
Difficulty expanding into Europe
Loss of shareholders