Natural Selection
by John CarrollHatched 25 years ago after the four owners of two natural-foods
groceries in
Austin - a group that includes current CEO John Mackey
- decided to join forces in one small store, Whole Foods has
erupted into one of the largest purveyors of natural and organic
products in the country, with its 37,000 employees selling
three-quarters of a billion pounds of produce a year. Along the
way, the VW Beetle crowd that made Whole Foods a cult fave in
central
Texas has been joined in the parking lot by the BMW and SUV
set. There are now 180 stores scattered from
Beverly Hills to
Manhattan and across the Atlantic to
London. By 2010, the chain
plans to swell to 300 stores with $12 billion in annual sales - up
from $3.9 billion in 2004.
While each store's green section operates individually, anywhere
from 40 percent to 70 percent of the offerings are certified
organic. And as each new store has opened up for the steadily
growing chain, it has helped widen the demand for succulent
organics.
After all, says
Bob Scowcroft, executive director of the nonprofit
Organic Farming Research Foundation, it was Whole Foods that
created a fresh image for organic produce. Its corporate roots
may be tie-dyed in back-to-the-land idealism, but the brand's urban
success is an outgrowth of an affluent demand for gourmet health
food and the pocketbooks to meet the price. That approach, adds
Scowcroft, has "taken organic from an individual taste and sensual
pleasure to a successful
Wall Street strategy." And in business,
success is always defined by how closely imitated you are by the
competition.
"So many of the retail chains have added organics in response to
Whole Foods' success," says Myra Goodman. "They're saying, 'Wow,
upscale shoppers are going five miles to Whole Foods. We better
start offering organic.'?"
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