Whole Foods Market’s second quarter sales, for the 12 weeks to April14, increased by 13.4% to $3.0bn, with comparable store sales up 6.9%. Net income over the period increased by 20.3% to $142m.
Improving its relative pricing positioning
Whole Foods Market delivered another strong quarter of sales and profit growth as it continues to benefit from investments in value and differentiation. The retailer is focusing on improving its relative pricing positioning through expanding its value propositions and increasing promotional activity. This is viewed as being key to its long-term growth and expanding its pool of shoppers.
A strong pipeline of new space for development
During the quarter six new stores were opened including its smallest US store at 16,000 sq ft. Smaller store formats are enabling Whole Foods Market to successfully enter smaller catchment areas, with a new 25,000 sq ft store in Indiana generating one of the retailer’s strongest performances in terms of sales density. It currently has 89 signed leases representing over three million sq ft in its development pipeline which will enable it to accelerate its growth plans over the next two to three years.
Focusing on traceability and transparency to build trust
With an increasing number of US retailers investing in health and wellness categories, Whole Foods Market continues to seek to further differentiate itself from its competitors. In March it set a deadline for full GMO transparency, announcing that all products in its US and Canadian stores containing genetically modified organisms will be clearly labeled by 2018. This builds upon its efforts to drive greater transparency around product sourcing, including its 5-Step animal welfare ratings in meat and its Eco-Scale for cleaning products.