Trader Joe's Swot

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S.W.O.T Study
Whole Foods Market, Inc.
&
Trader Joe’s

Andrew Liang

Background Information
Whole Foods Market, Inc. (WFM) lives through their motto of “Whole Food, Whole People, Whole Planet.” WFM opened their first store in Austin, Texas with 19 employees in 1980. Today, WFM has 311 stores in the US, Canada and the UK, and employs more than 72,700 employees. Whole Foods Market is one of the largest natural and organic food retailers in North America. WFM has grown to its size today mostly through mergers and acquisitions of such brands as Bread and Circus and Natures Heartland. In 2011 and 2012 Whole Foods Market was added to the Fortune 100 “Best Places to Work” list. Fortune Magazine (2012) STRENGTHS

Whole Foods is known for having a commitment to high quality organic products. WFM was the first nationwide grocer to have the “Certified Organics” seal. In their annual report, WFM advertised: “We have high standards and our goal is to sell the highest quality products we possibly can. We are buying agents for our customers and not the selling agents for the manufacturers.” Not only can they help you select the best food, they can also help you select natural, organic health and beauty items. WEAKNESSES

While the company proudly stands by its American grassroots by having 97% of its revenue generated domestically, there’s very little emphasis in reaching internationally. Furthermore, the company’s store fronts such as distribution centers, bake-houses and grocers have long-term lease obligations and are subject to its risks. With long-term leases, relocation and lease renewals become problematic. Some have dubbed the store “Whole Paycheck,” meaning you could spend your entire week’s wages shopping there. Cost and target customers aside, according to the company’s Form 10-K, they have enjoyed a 13% growth over FY 2011 totaling $4.1 Million in total gross profit but with nearly $3 Million in direct store expenses. Consequently, the company’s net...
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