How Whole Foods Is Destroying All Other Urban Supermarkets

Whole Foods is dominating the competition. (photo: Whole Foods)

slate.com - by Matthew Yglesias - May 8, 2013

Whole Foods had a stellar earnings announcement (PDF) yesterday evening announcing 8.5 percent identical-store sales growth and 13.6 percent overall sales growth. Strong growth was, to an extent, to be expected as the company had announced a deliberate strategy of lowering profit margins to try to expand sales outside their stereotyped high price "whole paycheck" niche. Except gross margins actually went up slightly.

The reason for this is particularly interesting, because it suggests that in Whole Foods' stronger markets its downscale competitors may be facing a real cycle of doom.

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