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Analysis of Whole Foods

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Whole Foods Market, Inc.

Joi Farlough-Matthews

Principles of Accounting 202

October 31, 2012
Whole Foods, Market Inc

Introduction Whole Foods is an organic market that targets educated and affluent individuals. The company was founded in 1978 and has locations throughout the United States, the United Kingdom and Canada (Yahoo Finance, 2012). Currently Whole Foods has 338 stores disbursed throughout these regions. This review will provide an understanding of issues currently faced by Whole Foods based on the 2010 financial report. The review further highlights the growth in sales. According to the Whole Foods Review (2010) “sales of natural products across all retail and direct-to-consumer channels grew to approximately $76 billion in 2009, a 5% increase over the prior year” (p. 3).
2010 Financial Report Whole Food’s 2010 financial report begins by providing shareholders an understanding of their target market based on geographical location (see chart 1.1.). This market segment demonstrates that profits are primarily due to the stores in the United States.
Chart 1.1. Demonstrates the profit margins based on the region (Whole Foods, 2011, p. 3). Sales by Region | 2010 | 2009 | 2008 | United States | 97% | 97.20% | 96.50% | Canada and the United Kingdom | 3% | 2.80% | 3.50% | Total Sales | 100% | 100% | 100% | Long-term assets | | | | United States | 96.60% | 96.50% | 96.40% | Canada and the United Kingdom | 3.40% | 3.50% | 3.60% | Total | 100% | 100% | 100% |

The review further explored the different segments retailed to profitability in terms of sales. Amongst these segments included grocery, prepared foods and other perishable items (see chart 1.2.). The results demonstrated that there was virtually no change in percentiles amongst the three sales categorizations (Whole Foods, 2010). However, there has been a slow decline in prepared foods…...

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