Discontinuing Amrion and its losses have cost Whole Foods about $49 million as plans are readied to sell off manufacturing and retail locations. Whole Foods says the decision does not affect the 20% to 25% sales growth forecast for 2001.
It's the announcement of new stores that headline the corporation's quarterly earnings report, which shows same store sales up 8.6% and identical stores, riding at 6.8%. The increases reflect four relocated stores and one remodeled property, totaling an average 96% increase in square footage - a move toward bigger boxes for its retail outlets.
In the past year, Whole Foods has added 20 new and acquired stores to its 117-store portfolio and five just in the past quarter. There are 23 stores in the current development pipeline, with the property average riding at 34,000 sf.
John Mackey, Whole Foods CEO and chairman, says several of the stores are expected to be blockbusters. The Denver store, which had opened in early November, has recorded the second-highest opening week in the company's history and already is ranked n the top 10 highest volume properties. "Other anticipated blockbuster stores include our first store in Manhattan, a great location in Washington D.C., as well as additional stores in Houston, Philadelphia and Cambridge," says Mackey. All but Cambridge, MA will open in the first six months of 2001.
Whole Foods' first store had opened in 1980 in Austin. The natural food supermarket chain now has operations in 22 states and the District of Columbia.
Ongoing initiatives in national purchasing, category management and a sales mix shift toward higher gross margin departments are having a positive impact, say company officials. Quarterly EBITDA from core retail has increased 34% to $43 million or9.7% of sales in comparison to 8.9% of sales for the prior year. The year-end analysis places core retail EBITDA up 27% to $166 million or 9.1% of sales. It was 8.8% of sales in the prior year.
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