Whole Foods Competition
Now Viewing Whole Foods's competition in: Specialty Food Stores (primary)
Recent Developments
Green Consumers Spending - "LOHAS" (Lifestyles Of Health And Sustainability) consumers are the top spenders in many consumer packaged goods categories that offer a wide range of organic, all-natural, and environmentally friendly options, according to Nielsen and the Natural Marketing Institute (NMI). Categories include produce, cereal, soup, eggs, pasta, nuts, sports drinks, and light bulbs. NMI projects US sales of LOHAS products to be more than $400 billion by 2010. Specialty food stores have good opportunities to meet the needs of the LOHAS consumer segment.
Canada Introduces Specialty Food Concept in US - Canada's specialty frozen food retailer M&M Meat Shops is bringing its concept to the US under the brand MyMenu. By year-end 2008, eight MyMenu shops will open in Madison, Wisconsin, offering flash frozen meat, fish, fruit, vegetables, and desserts, as well as whole meals and party foods, in a one-aisle store layout. MyMenu targets the "soccer mom" set, suburban 25- to 54-year-old parents who juggle career and family and strive to put warm, healthy meals on the dinner table. MyMenu envisions ultimately operating 300 to 400 franchised shops in the Midwest alone, competing with existing area specialty food retailers.
More Shoppers Reading Nutrition Labels - Some 65 percent of US consumers say that they notice nutritional information on food packaging more now than they did just two years ago, according to a survey by Nielsen. Research shows that 51 percent of US consumers always check the fat content on nutrition labels, 48 percent look at the calorie count, and 43 percent check for trans fats. Because so many shoppers are reading nutrition labels, specialty retailers that manufacture their own in-store brands have an opportunity to provide consumer-friendly, informative labels that entice consumers.
Competitive Landscape
Consumer spending and tastes drive demand. The profitability of individual companies depends on effective merchandising and the ability to generate store traffic. Large companies can offer a wide selection of products and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by offering specialty products, providing superior service, or serving a local market. The industry is labor-intensive: average annual revenue per worker is about $100,000.
Specialty Food Stores Industry Forecast
from Hoover's/D&B subsidiary First Research
US personal spending on food for human consumption, a major driver for specialty food stores, are forecast to grow at an annual compounded rate of 3.6 percent between 2008 and 2013.
Consumer Spending Growth on Food Flattens
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

- Demand: Tied to consumer income
- Need good merchandising
- Risk: Slow economy pushes consumers to low-margin products
Industries Where Whole Foods Competes
- Retail
- Grocery Retail
- Natural & Specialty Foods Retail (primary)
- Grocery Retail





