Dive Brief:
- Whole Foods reduced its forecast for earnings and same-store sales for the rest of 2014 -- the third such lowering of expectations in recent months.
- The natural and organic food retailer said same-store sales rose just 4.5% in the fiscal quarter ended April 13 -- below analysts' forecasts and less than the 5.4% seen in the prior quarter.
- Net income stood at $142 million for the quarter, less than analysts' expectations.
Dive Insight:
John Mackey, Whole Foods' co-CEO, called out the elephant in the room when he told analysts on a conference call that his company no longer has the field to itself when it comes to high-end, healthy groceries.
Whole Foods' greatest accomplishment has been changing how Americans think about food. But with that done, the retailer must now face a market where every grocer mimics Whole Foods' approach. Organics are everywhere. Local food is everywhere. Artisanal, hand-crafted, GMO-free foods, drinks, cleaning supplies, and beauty products are everywhere now.
And there's no guarantee that Whole Foods can triumph in a world where its unique selling proposition is no longer unique.