By Michael Dorausch, D.C.
planetc1.com staff writer
Whole Foods stock (WFMI) on Friday dropped by 23% with share volume of over 45 million and an end of day stock price around $46, the company’s lowest share price since February of 2005.
The Austin-Texas based grocery giant released fiscal fourth-quarter earnings on Thursday after the markets closed.
According to the CEO for Whole Foods Market, competition from other major grocers is blamed for the drop, and growth for 2007 is expected to be a bit stunted.
News articles from across the nation painted a less than healthy picture for the organic style grocery chain. Some headlines from major news outlets read as follows… Whole Foods’ Shares Drop On Signal of Slower Sales — Washington Post, Investors shred Whole Foods — Chicago Tribune, Whole Foods stock plummets 23% — The Courier News, Whole Foods hits 52-week low — Philadelphia Inquirer
Since the 1980s, Whole Foods has been providing organic products and produce to mostly health-conscious shoppers, at premium prices. But analysts have warned that a slowing in consumer spending combined with intense competition from mainstream grocery stores and megastores, such as Wal-Mart, may present Whole Foods with a serious challenge.
Wal-Mart, the world’s largest retailer, is planning to put more than 400 organic items on its grocery shelves. Trader Joe’s, popular in states such as California, Arizona & Nevada, is moving into the Northeast, and the state of Georgia. Even Target is planning to move into the healthier organic food model.
While growing competition may not be good for Whole Foods stock prices, having healthier choices and a greater selection of locations for getting quality nutrition, is good for American consumers.
Here in West Los Angeles, I typically pass several major grocery outlets (Ralph’s, Vons, Albertson’s) to shop at places like Trader Joe’s and Whole Foods. For most wellness minded consumers, I would expect that to be the norm, especially in an area like Southern California. As a nation, maybe we’ll start eating better when we have more choices to do so.
Chiropractic tip of the day: Eat healthy, get plenty of rest, exercise at least three times a week, and see your chiropractor on a regular basis to ensure your spine and nervous system are functioning optimally.
planetc1.com-news @ 5:13 pm | Article ID: 1162786453
Comments are closed for this article!