Despite overall performance declines they describe as short-term, Moody’s Investor Service is giving Whole Foods Market a “thumbs up”. They expect that Whole Foods will maintain and strengthen their lead in the organic/natural health retail sector.
“The company is also implementing a long-term plan to broaden its appeal to more price-conscious consumers and alter the perception that the natural and organic lifestyle it promotes is only accessible to a higher-income demographic,” notes Moody’s.
This is a real shot in the arm for the industry leader after several boycotts and protests by activist groups and a layoff of 1.6 per cent of its work force last year.
Although Moody’s expects flat comparable sales growth during fiscal 2016 for Whole Foods, it expects greater improvement of 1.5 to 2.5 per cent in 2017.
