Big Challenges In Wild Oats Purchase

As noted above the purchase of Oats purchase is inconsistent with previous buyouts. The chains that WFM purchased on its way to revolutionizing the grocery business were regional, small chains  (usually between 10 to 20 stores) that were extremely well run leaders in their respective markets.  Among others, Mrs. Gooch’s in Southern California, Bread & Circus in the Boston area, Fresh Fields in the D.C. metropolitan area were all considered equals to Whole Foods. 

<!--[if !supportEmptyParas]--><!--[endif]--> Wild Oats has always been a distant runner-up, plagued by an ill-advised growth strategy, yet at the same time blessed by the huge growth in the demand for natural and organic foods.  Currently its stores are a disparate group, with formats ranging all over the map in size, profitability and marketplace appeal. 

One of Whole Foods greatest unstated ‘assets’ has been the consistent poor performance of conventional grocers in capturing natural and organic shoppers.  Most recently this has changed. As more conventional stores create natural formats (Supervalu's Sunflower, Publix Greenwise) and places like Safeway’s Lifestyle stores the real battle is beginning.  Once, transitional natural shopping dollars have been headed for Whole Foods coffers. Today, more than ever, she can buy organic milk and baby food for her newborn elsewhere these days--Safeway, Kroger, and of course Wal-Mart and Target too.