Whole Foods Market
By Jesse Carter
Background Information
• Founded in 1980 in Austin, Texas• 1984: expansion out of Austin
began• Opened new stores from the
ground up• Throughout the 90s, acquired
other natural food chains• Global expansion starting in 21st
century• Currently has 39,000 employees
and 193 stores
First Whole Foods Market
Image from http://www.wholefoodsmarket.com/company/history.html
Philosophy
• Motto: “Whole Foods, Whole People, Whole Planet”
• Declaration of Interdependence—created originally in 1985
• Core values, quality standards, and future plans are extensive lists
Some Questions
• How many of you have shopped at Whole Foods before?
• How many of you shop there regularly?
• Why?
Whole Foods and The Long Tail
• Each store designed uniquely for its locale
• Natural/organic food market is its own niche
• Ability of customers to spend time in store doing things other than shopping
• Major brands and the niche market
• Whole Foods is still a supermarket
Whole Foods and The Long Tail
• Early this year, Whole Foods Inc. increased the salary cap for executives
• In an open letter, founder John Mackey called the cap necessary to maintain executive talent
• Defended the move by reminding everyone that 93% of the company’s stock options are distributed to non-executive employees
• Question: Can companies in niche markets stay profitable and maintain their core philosophies at the same time?
Whole Foods and Democratizing Innovation
• Offered $10 million in low-interest loans to small farmers who grow their crops organically
• Allow each store’s locale to determine its specific attributes
• “Democratization” of pay—CEO (Mackey) is no longer paid for his services– Do you think he is a lead user
doing his work for the pure enjoyment of it?
Whole Foods and Democratizing Innovation
• Pay structure is still very hierarchical
• Grocery store model can be limiting in terms of innovation
Whole Foods and The Wealth of Networks
• Space provided for the common community of shoppers to get together
• Whole Foods website– John Mackey’s blog, where users
can read and comment•http://www.wholefoodsmarket.com/
blogs/jm/
– Podcasts•http://
www.wholefoodsmarket.com/podcasts/
Laws of Simplicity (Fitting)• Reduce—only organic products • Organize—layout groups certain
items together• Time—make waits more tolerable
with free sample• Differences—simple philosophy
with complicated parts—provides balance
• Emotions—people’s strong feelings about healthy foods and healthy environmental practices met
• Trust—consumers trust grocery store model generally and Whole Foods specifically
Laws of Simplicity (Not Fitting)
• Reduce—offers huge range of organic food products, natural body supplements, skincare products, etc.
• Organize—each store is unique to its locale, thus each store is organized differently
• Time—not designed to get you in and out quickly