Whole Foods Market IP, Inc., a subsidiary of
Amazon
Amazon most often refers to:
* Amazons, a tribe of female warriors in Greek mythology
* Amazon rainforest, a rainforest covering most of the Amazon basin
* Amazon River, in South America
* Amazon (company), an American multinational technology c ...
, is an upscale American multinational
supermarket
A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...
chain
A chain is a serial assembly of connected pieces, called links, typically made of metal, with an overall character similar to that of a rope in that it is flexible and curved in compression but linear, rigid, and load-bearing in tension. A c ...
headquartered in
Austin, Texas
Austin is the capital city of the U.S. state of Texas, as well as the county seat, seat and largest city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and Williamson County, Texas, Williamson co ...
, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives. A
USDA
The United States Department of Agriculture (USDA) is the federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food. It aims to meet the needs of com ...
Certified Organic
Organic certification is a certification process for producers of organic food and other organic agricultural products, in the European Union more commonly known as ecological or biological products.Labelling, article 30 o''Regulation (EU) 2018/ ...
grocer in the United States, the chain is popularly known for its
organic selections. Whole Foods has 500 stores in North America and seven in the United Kingdom .
Amazon
Amazon most often refers to:
* Amazons, a tribe of female warriors in Greek mythology
* Amazon rainforest, a rainforest covering most of the Amazon basin
* Amazon River, in South America
* Amazon (company), an American multinational technology c ...
acquired the company for $13.7 billion on August 28, 2017.
History
Early years
In 1978, John Mackey and Renee Lawson borrowed $45,000 from family and friends to open a small vegetarian natural foods store called SaferWay in Austin, Texas (the name being a
spoof
Spoof, spoofs, spoofer, or spoofing may refer to:
* Forgery of goods or documents
* Semen, in Australian slang
* Spoof (game), a guessing game
* Spoofing (finance), a disruptive algorithmic-trading tactic designed to manipulate markets
__NOTOC__ ...
of
Safeway
Safeway is an American supermarket chain founded by Marion Barton Skaggs in April 1915 in American Falls, Idaho. The chain provides grocery items, food and general merchandise and features a variety of specialty departments, such as bakery, d ...
). When the two were evicted for storing food products in their apartment, they decided to live at the store. Because it was zoned for commercial use, there was no shower stall, so they bathed using a water hose attached to their dishwasher.
Two years later, Mackey and Lawson partnered with Craig Weller and Mark Skiles to merge SaferWay with the latter's Clarksville Natural Grocery, resulting in the opening of the original Whole Foods Market, which included meat products. At and with a staff of 19, the store was large in comparison to the standard
health food store
A health food store (or health food shop) is a type of grocery store that primarily sells health foods, organic foods, local produce, and often nutritional supplements. Health food stores typically offer a wider or more specialized selection of fo ...
of the time.
On May 25, 1981, the most damaging flood in 70 years devastated Austin. Whole Foods' inventory was ruined, and most of the equipment was damaged. The loss was approximately $400,000 and Whole Foods Market had no insurance. Customers, neighbors, and staff assisted to repair and clean up the damage. Creditors, vendors and investors assisted the recovery, and the store reopened 28 days later.
Expansion
![bread & circus bakery Medford](https://upload.wikimedia.org/wikipedia/commons/c/cc/Bread_%26_circus_bakery_Medford_.jpg)
Beginning in 1984, Whole Foods Market expanded from Austin, first to
Houston
Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
and
Dallas
Dallas () is the List of municipalities in Texas, third largest city in Texas and the largest city in the Dallas–Fort Worth metroplex, the List of metropolitan statistical areas, fourth-largest metropolitan area in the United States at 7.5 ...
and then to New Orleans with the purchase of The Whole Food Co. in 1988. In 1989, the company expanded to the West Coast with a store in
Palo Alto, California
Palo Alto (; Spanish language, Spanish for "tall stick") is a charter city in the northwestern corner of Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree kno ...
.
The company made its
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...
on January 23, 1992.
While opening new stores, the company fueled rapid growth by acquiring other natural foods chains throughout the 1990s: Wellspring Grocery of
North Carolina
North Carolina () is a state in the Southeastern region of the United States. The state is the 28th largest and 9th-most populous of the United States. It is bordered by Virginia to the north, the Atlantic Ocean to the east, Georgia and So ...
, Bread & Circus of
and
Rhode Island
Rhode Island (, like ''road'') is a U.S. state, state in the New England region of the Northeastern United States. It is the List of U.S. states by area, smallest U.S. state by area and the List of states and territories of the United States ...
(banner retired in 2003), Mrs. Gooch's Natural Foods Markets of Los Angeles, Bread of Life of Northern California, Fresh Fields Markets on the East Coast and in the Midwest, Florida Bread of Life stores, Detroit-area Merchant of Vino stores, and Nature's Heartland of Boston.
The company purchased Allegro Coffee Company in 1997. The company's 100th store was opened in
Torrance, California
Torrance is a city in the Los Angeles metropolitan area located in Los Angeles County, California, Los Angeles County, California, United States. The city is part of what is known as the South Bay (Los Angeles County), South Bay region of the m ...
, in 1999.
The company started its third decade with additional acquisitions. The first was Natural Abilities in 2000, which did business as Food for Thought in
Northern California
Northern California (colloquially known as NorCal) is a geographic and cultural region that generally comprises the northern portion of the U.S. state of California. Spanning the state's northernmost 48 counties, its main population centers incl ...
. After the departure of then company president Chris Hitt and regional president Rich Cundiff, Southern California region, John Mackey promoted A. C. Gallo, president of the Northeast region and Walter Robb, president of the Northern California region to co-COO and soon after added the titles of co-president. This led to the promotion of three new regional presidents and a new era for the company. David Lannon became president of the Northeast region, Anthony Gilmore became president of the Southwest region, Ron Megehan became president of the Northern California region. In 2001, Whole Foods also moved into
Manhattan
Manhattan (), known regionally as the City, is the most densely populated and geographically smallest of the five boroughs of New York City. The borough is also coextensive with New York County, one of the original counties of the U.S. state ...
. Later that year, Ken Meyer became president of the newly formed South region and Whole Foods Market acquired the assets of Harry's Farmers Market, which included three stores in
Atlanta
Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
. In 2002, the company continued its expansion in North America and opened its first store in
Toronto, Ontario
Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the ancho ...
. Further continuing its expansion, Select Fish of
Seattle
Seattle ( ) is a seaport city on the West Coast of the United States. It is the seat of King County, Washington. With a 2020 population of 737,015, it is the largest city in both the state of Washington and the Pacific Northwest regio ...
was acquired in 2003.
In late 2004, it was reported that Whole Foods had "cleared $188 million in profits in the last two years."
In 2005, Whole Foods opened its flagship store in
downtown Austin
Downtown Austin is the central business district of Austin, Texas. Downtown is located on the north bank of the Colorado River. The approximate borders of Downtown include Lamar Boulevard to the west, Martin Luther King Jr. Boulevard and the Un ...
. The company's headquarters moved into offices above the store.
Whole Foods opened its first store in Hawaii in 2008 and in 2008 it also opened a southeast distribution center in
Braselton, Georgia
Braselton ( ) is a town in Barrow, Gwinnett, Hall, and Jackson counties in the U.S. state of Georgia, approximately northeast of Atlanta. As of the 2010 census, the town had a population of 7,511, and in 2018 the estimated population was 11,6 ...
, calling it the first "green distribution center" for the company.
Along with new acquisitions, such as the 2014 purchase of seven
Dominick's
Dominick's was a Chicago-area grocery store chain and subsidiary of Safeway Inc. Dominick's distribution center was located in Northlake, Illinois, while its management offices were located in Oak Brook, Illinois.
History
Founding
Dominick DiM ...
Finer Foods locations in Chicago, Whole Foods has also sold stores to other companies. For example, 35 Henry's Farmers Market and Sun Harvest Market stores were sold to a subsidiary of Los Angeles grocer
Smart & Final
Smart & Final is a chain of warehouse-style food and supply stores based in Commerce, California, which developed through a series of mergers and expansions. The oldest of the combined companies, Hellman-Haas Grocery, was founded in 1871 in Los ...
Inc. for $166 million in 2007.
Whole Foods opened its second store in western New York in
Amherst, a suburb of
Buffalo in September 2017.
As part of a streamlining campaign, in January 2017 the company reported that it would close three remaining regional kitchens in
Everett,
Landover and
Atlanta
Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
.
In June 2017, Amazon purchased Whole Foods Market for $13.7 billion. Amazon plans for Whole Foods customers who also have an Amazon prime account to be able to order groceries online and then pick them up in store for free.
In January 2019, to facilitate expansion into previously unserved areas, Amazon announced plans to acquire some former
Sears
Sears, Roebuck and Co. ( ), commonly known as Sears, is an American chain of department stores founded in 1892 by Richard Warren Sears and Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and Julius Rosenwald, with what began a ...
and
Kmart
Kmart Corporation ( , doing business as Kmart and stylized as kmart) is an American retail company that owns a chain of big box department stores. The company is headquartered in Hoffman Estates, Illinois, United States.
The company was inc ...
locations from
Sears Holdings
Sears Holdings Corporation was an American holding company headquartered in Hoffman Estates, Illinois. It was the parent company of the chain stores Kmart and Sears and was founded after the former purchased the latter in 2005. It was the 20th- ...
, which filed for Chapter 11 Bankruptcy protection on October 15, 2018. These vacant locations would be demolished or remodeled to create new Whole Foods Market locations.
In April 2019, Whole Foods opened its largest store in the Southeast in Midtown Atlanta. The three-level store has a burger restaurant, an Allegro Coffee shop and a rooftop terrace.
International expansion
![Whole Foods Market Vancouver Broadway Store Interior 2018](https://upload.wikimedia.org/wikipedia/commons/a/aa/Whole_Foods_Market_Vancouver_Broadway_Store_Interior_2018.jpg)
Whole Foods entered the Canadian market in 2002 in
Toronto
Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the ancho ...
.
In 2013, Whole Foods said it would open around 40 more stores in Canada over time. At the time, there were 9 Whole Foods in Canada.
By January 2017, Whole Foods had 467 stores, all of which were in the United States except 9 in the United Kingdom and 12 in Canada. In January 2017, Whole Foods announced it was canceling plans from 2015 and 2016 to open stores in Calgary and Edmonton.
[ Among the twelve were five each in Greater Vancouver and Greater Toronto, and one each in ]Ottawa
Ottawa (, ; Canadian French: ) is the capital city of Canada. It is located at the confluence of the Ottawa River and the Rideau River in the southern portion of the province of Ontario. Ottawa borders Gatineau, Quebec, and forms the core ...
and Victoria
Victoria most commonly refers to:
* Victoria (Australia), a state of the Commonwealth of Australia
* Victoria, British Columbia, provincial capital of British Columbia, Canada
* Victoria (mythology), Roman goddess of Victory
* Victoria, Seychelle ...
. In March 2020 there were 487 stores in the US, 14 in Canada and 7 in the UK.[
In 2004, Whole Foods Market entered the UK by acquiring seven Fresh & Wild stores.] In June 2007, it opened its first full-size store, a total of on three levels, on the site of the old Barkers
Barkers or Barkers Men's Clothing is a New Zealand menswear fashion brand and retail chain. It has 31 stores around the country, including 13 in Auckland. It was established in Auckland CBD in 1972, and is headquartered in Grafton, Auckland. The ...
department store on Kensington High Street
Kensington High Street is the main shopping street in Kensington, London, England. The area is identified in the London Plan as one of 35 major centres in Greater London.
Kensington High Street is the continuation of Kensington Road and part ...
, West London and currently their largest store in the world. Company executives claimed that as many as forty stores might eventually be opened throughout the UK. However, by September 2008, in the wake of Whole Foods Market's financial troubles, Fresh & Wild had been reduced to four stores, all in London. The flagship Bristol
Bristol () is a city, ceremonial county and unitary authority in England. Situated on the River Avon, it is bordered by the ceremonial counties of Gloucestershire to the north and Somerset to the south. Bristol is the most populous city in ...
branch closed because it had "not met profitability goals". In the year to September 28, 2008, the UK subsidiary lost £36 million due to a large impairment charge An impaired asset is an asset which has a market value less than the value listed on its owner's balance sheet.
According to U.S. accounting rules (known as US GAAP), the value of an asset is impaired when the sum of estimated future cash flows fr ...
of £27 million and poor trading results due to the growing fears of global recession. However, in 2011, global sales grew +8% each financial quarter as shoppers returned to the chain. A first Scottish store was opened on November 16, 2011, in Giffnock
Giffnock (; sco, Giffnock; gd, Giofnag, ) is a town and the administrative centre of East Renfrewshire in the Central Lowlands of Scotland.
It lies east of Barrhead, east-southeast of Paisley and northwest of East Kilbride, at the south ...
, Glasgow. Whole Foods Market Inc. currently operates seven different Whole Foods locations: in Camden Town
Camden Town (), often shortened to Camden, is a district of northwest London, England, north of Charing Cross. Historically in Middlesex, it is the administrative centre of the London Borough of Camden, and identified in the London Plan as o ...
, Clapham Junction
Clapham Junction is an urban locality around Clapham Junction railway station in London, England. Despite its name, it is not located in Clapham, but forms the commercial centre of Battersea.
Clapham Junction was a scene of disturbances during ...
, Kensington
Kensington is a district in the Royal Borough of Kensington and Chelsea in the West End of London, West of Central London.
The district's commercial heart is Kensington High Street, running on an east–west axis. The north-east is taken up b ...
, Piccadilly Circus, Richmond
Richmond most often refers to:
* Richmond, Virginia, the capital of Virginia, United States
* Richmond, London, a part of London
* Richmond, North Yorkshire, a town in England
* Richmond, British Columbia, a city in Canada
* Richmond, California, ...
, Stoke Newington
Stoke Newington is an area occupying the north-west part of the London Borough of Hackney in north-east London, England. It is northeast of Charing Cross. The Manor of Stoke Newington gave its name to Stoke Newington the ancient parish.
The ...
and Fulham
Fulham () is an area of the London Borough of Hammersmith & Fulham in West London, England, southwest of Charing Cross. It lies on the north bank of the River Thames, bordering Hammersmith, Kensington and Chelsea. The area faces Wandsworth ...
. Whole Foods closed its Giffnock and Cheltenham
Cheltenham (), also known as Cheltenham Spa, is a spa town and borough on the edge of the Cotswolds in the county of Gloucestershire, England. Cheltenham became known as a health and holiday spa town resort, following the discovery of mineral s ...
stores at the end of November 2017, under a rationalisation plan.
Acquisition of Wild Oats Markets and antitrust complaint
On February 21, 2007, Whole Foods Market, Inc. and Wild Oats Markets Inc. announced the signing of a merger agreement under which Whole Foods Market, Inc. would acquire Wild Oats Markets Inc.'s outstanding common stock in a cash tender offer of $18.50 per share, or approximately $565 million based on fully diluted shares. Under the agreement, Whole Foods Market, Inc. would also assume Wild Oats Markets Inc.'s existing net debt totaling approximately $106 million as reported on September 30, 2006.
On June 27, 2007, the Federal Trade Commission
The Federal Trade Commission (FTC) is an independent agency of the United States government whose principal mission is the enforcement of civil (non-criminal) antitrust law and the promotion of consumer protection. The FTC shares jurisdiction ov ...
(FTC) issued an administrative complaint challenging Whole Foods Market, Inc.'s acquisition of Wild Oats Markets Inc. According to the complaint, the FTC believed that the proposed transaction would violate federal antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
laws by eliminating the substantial competition between two close competitors in the operation of premium natural and organic supermarkets nationwide. The FTC contended that if the transaction were to proceed Whole Foods Market would have the ability to raise prices and reduce quality and services. Both Whole Foods Market and Wild Oats stated their intention to vigorously oppose the FTC's complaint and a court hearing on the issue was scheduled for July 31 and August 1, 2007. CEO John Mackey started
blog
on the subject to explain his opposition to the FTC's stance. Further blogging by Mackey was revealed when the FTC released papers detailing highly opinionated comments under the pseudonym "Rahodeb" that he made to the Whole Foods Yahoo!
Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo Inc., which is 90% owned by investment funds managed by Apollo Global Man ...
investment message board. This became the subject of an investigation when the Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
(SEC) noted that Regulation Fair Disclosure law of 2000 may have been violated. The SEC cleared Mackey of the charges on April 25, 2008.
On July 29, 2008, the Court of Appeals for the District of Columbia overturned the district court's decision allowing the merger. The Court of Appeals ruled that "premium natural, and organic supermarkets" ("PNOS"), such as Whole Foods and Wild Oats, constitute a distinct submarket of all grocers. The court ruled that "mission driven" consumers (those with an emphasis on social and environmental responsibility) would be adversely affected by the merger because substantial evidence by the FTC showed that Whole Foods intended to raise prices after consummation of the merger. As part of its effort to combat the ruling, Whole Foods subpoenaed financial records, market studies and future strategic plans belonging to New Seasons Market
New Seasons Market is a chain of privately owned grocery stores operating in the Portland, Oregon metro area, southwestern Washington, and northern California. Some of the products offered are organic and produced locally in the Pacific Northw ...
, a regional competitor based in the Portland area. In 2009 Whole Foods agreed to sell the Wild Oats chain.
2017–present: Amazon subsidiary
In February 2017, Whole Foods Market said it would close nine of its stores and lowered its financial projections for the year, as the natural-foods company struggled with increased competition and slowing sales growth. In late April 2017, Whole Foods reported their sixth consecutive quarter of declining sales, and announced that the company would be closing nine stores: two each in Colorado and California, and one each in Georgia, Arizona, Utah, New Mexico, and Illinois. The loss of revenue was attributed to foot traffic being down and other supermarkets offering a similar experience for a lower cost.
On June 15, 2017, Amazon
Amazon most often refers to:
* Amazons, a tribe of female warriors in Greek mythology
* Amazon rainforest, a rainforest covering most of the Amazon basin
* Amazon River, in South America
* Amazon (company), an American multinational technology c ...
announced it would acquire Whole Foods Market, adding some 400 physical stores to Amazon's e-commerce assets. The purchase was valued at $13.7 billion, and caused Whole Foods's stock price to soar after the announcement was made.
In 2018, Whole Foods Market announced its possible intention to take over some vacant Sears
Sears, Roebuck and Co. ( ), commonly known as Sears, is an American chain of department stores founded in 1892 by Richard Warren Sears and Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and Julius Rosenwald, with what began a ...
and Kmart
Kmart Corporation ( , doing business as Kmart and stylized as kmart) is an American retail company that owns a chain of big box department stores. The company is headquartered in Hoffman Estates, Illinois, United States.
The company was inc ...
stores and refurbish them after Sears Holdings Corporation
Sears Holdings Corporation was an American holding company headquartered in Hoffman Estates, Illinois. It was the parent company of the chain stores Kmart and Sears and was founded after the former purchased the latter in 2005. It was the 20th-l ...
, which owned both chains, filed for bankruptcy
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor ...
in October.
In April 2022, Whole Foods in Austin, Texas
Austin is the capital city of the U.S. state of Texas, as well as the county seat, seat and largest city of Travis County, Texas, Travis County, with portions extending into Hays County, Texas, Hays and Williamson County, Texas, Williamson co ...
began allowing consumers to make purchases by scanning their palm. The system uses the Amazon One
Amazon One is a payment system offered by Amazon (company), Amazon. It is based on biometrics and works by reading users' palm print. It is used by retailers like Whole Foods Market, Amazon Go and Amazon Go Grocery, as well as third-party retailer ...
system connected to a customer's debit or credit card.
On September 1, 2022, John Mackey stepped down from his position as chief executive officer
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
(CEO) of the company, one he held since its inception in 1980. He was succeeded by Jason Buechel. Buechel previously served as executive vice president and chief information officer (CIO) between 2013 and 2019, followed by a tenure as chief operating officer
A chief operating officer or chief operations officer, also called a COO, is one of the highest-ranking executive positions in an organization, composing part of the "C-suite". The COO is usually the second-in-command at the firm, especially if t ...
(COO) from 2019 until his promotion in 2022.
Product quality
Whole Foods Market sells only products that meet its self-created quality standards for being "natural," which the store defines as: minimally processed foods that are free of hydrogenated fats as well as artificial flavors
A flavoring (or flavouring), also known as flavor (or flavour) or flavorant, is a food additive used to improve the taste or smell of food. It changes the perceptual impression of food as determined primarily by the chemoreceptors of the gust ...
, colors
Color (American English) or colour (British English) is the visual perceptual property deriving from the spectrum of light interacting with the photoreceptor cells of the eyes. Color categories and physical specifications of color are associa ...
, sweeteners
A sugar substitute is a food additive
Food additives are substances added to food to preserve flavor or enhance taste, appearance, or other sensory qualities. Some additives have been used for centuries as part of an effort to preserve food, ...
, preservatives
A preservative is a substance or a chemical that is added to products such as food products, beverages, pharmaceutical drugs, paints, biological samples, cosmetics, wood, and many other products to prevent decomposition by microbial growth or by ...
, and many others as listed on their online "Unacceptable Food Ingredients" list. Whole Foods Market has also announced that it does not intend to sell meat or milk from cloned
Cloning is the process of producing individual organisms with identical or virtually identical DNA, either by natural or artificial means. In nature, some organisms produce clones through asexual reproduction. In the field of biotechnology, c ...
animals or their offspring, even though the U.S. Food and Drug Administration
The United States Food and Drug Administration (FDA or US FDA) is a List of United States federal agencies, federal agency of the United States Department of Health and Human Services, Department of Health and Human Services. The FDA is respon ...
(FDA) has ruled them safe to eat.
The company also sells many USDA-certified organic foods and products that aim to be environmentally friendly and ecologically responsible. Stores do not carry foie gras
Foie gras (, ; ) is a specialty food product made of the liver of a duck or goose. According to French law, foie gras is defined as the liver of a duck or goose fattened by gavage (force feeding).
Foie gras is a popular and well-known delica ...
or eggs from hens confined to battery cages
Battery cages are a housing system used for various animal production methods, but primarily for egg-laying hens. The name arises from the arrangement of rows and columns of identical cages connected together, in a unit, as in an artillery batt ...
due to animal cruelty concerns, as a result of successful advocacy by animal welfare groups. The Whole Foods Market website details the company's criteria for selling food, dietary supplements, and personal care products.
Until June 2011, body care products sold at Whole Foods Market could be marketed as organic even if they contained ingredients not listed by the USDA as acceptable for use in organic food. "Products made using petroleum-derived and other synthetic or chemical ingredients, prohibited in organic foods, can be found among the organic shampoos and lotions made by Avalon, Nature's Gate, Jason Natural Cosmetics, Kiss My Face and other brands", said Urvashi Rangan, an environmental health scientist at Consumer Reports. This is because the federal guidelines that regulate organic food labeling do not apply to cosmetics. Starting in June 2011, personal care products sold at Whole Foods Market were required to follow the same USDA National Organic Program standards for organic food. This required products labeled "Organic" to contain 95 percent or more certified organic ingredients.
In a ''Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' article in August 2009, John Mackey acknowledged that his company had lost touch with its natural food roots and would attempt to reconnect with the idea that health was affected by the quality of food consumed. He said "We sell a bunch of junk". He stated that the company would focus more on health education in its stores. As of 2013, many stores have employed Healthy Eating Specialists which are team members who "answer customers’ healthy eating questions and can assist...in choosing the most nutrient-dense ingredients, suggest satisfying healthy recipes," and help "create a meal plan in keeping with your health goals."
Rating systems
In an effort to allow their customers full-transparency in purchasing, Whole Foods Market has developed a number of in-store rating systems for various departments. The Seafood department has a Sustainability Rating System for wild-caught seafood while farm-raised seafood has to meet aquaculture standards both rated in accordance to third-party auditors. The Meat department has a rating system in partnership with the Global Animal Partnership based on animal welfare. The produce department has a rating system based on farming practices which include measures of a farm's environmental, GMO transparency, worker safety and wage practices. The grocery department has an Eco-scale rating system for its cleaning products which measures their environmental impact. Each system is in place to allow customers to make the most educated choices within Whole Foods Market. There are efforts to create more rating systems in other departments.
GMO product labeling
Whole Foods Market has announced plans to provide its customers GMO (genetically modified organism
A genetically modified organism (GMO) is any organism whose genetic material has been altered using genetic engineering techniques. The exact definition of a genetically modified organism and what constitutes genetic engineering varies, with ...
) product labeling by 2018. Efforts of GMO transparency run the gamut of each department. For years, Non-GMO Project Verified items have been sought in Grocery. While efforts continue in Produce, Whole Foods recommends buying organic or referring to their "Responsibly Grown produce rating system hich
Ij ( fa, ايج, also Romanized as Īj; also known as Hich and Īch) is a village in Golabar Rural District, in the Central District of Ijrud County, Zanjan Province, Iran
Iran, officially the Islamic Republic of Iran, and also ...
requires growers to disclose use of GMO seeds or plant material." In Seafood, plans are being made to launch a Non-GMO Project Verification process for farm-raised fish. Currently, there are no USDA Organic regulations for farmed seafood.
Purchasing
Whole Foods Market purchases products for retail sale from local, regional, and international wholesale suppliers and vendors. The majority of purchasing occurs at the regional and national levels to negotiate volume discounts with major vendors and distributors. Regional and store buyers are focused on local products and any unique products necessary to ensure a neighborhood market feel in the stores. Whole Foods says that the company is committed to buying from local producers that meet its quality standards while also increasingly focusing more of their purchasing on producer- and manufacture-direct programs. Some regions have an employee known as a "forager", whose sole duty is to source local products for each store.
Whole Trade Guarantee
In April 2007, Whole Foods Market launched the Whole Trade Guarantee, a purchasing initiative emphasizing ethics and social responsibility concerning products imported from the developing world. The criteria include fair prices for crops, environmentally sound practices, better wages and labor conditions for workers and the stipulation that one percent of proceeds from Whole Trade certified products go to the Whole Planet Foundation to support micro-loan programs in developing countries. The company's goal, published in 2007, is to have at least half of its imported products from these countries fully certified by 2017.
Efforts
Whole Foods Market has a policy of donating at least five percent of its annual net profits to charitable causes. Some of this mandate is accomplished through store level donations held on certain "5% days" throughout the year. The rest of it comes from various targeted projects by the company.
Environmental involvement
In May 1999, Whole Foods Market joined the Marine Stewardship Council
The Marine Stewardship Council (MSC) is a non-profit organization which aims to set standards for sustainable fishing. Fisheries that wish to demonstrate they are well-managed and sustainable compared to the MSC's standards are assessed by a te ...
(MSC), a global independent, not-for-profit organization promoting sustainable fisheries
A conventional idea of a sustainable fishery is that it is one that is harvested at a sustainable rate, where the fish population does not decline over time because of fishing practices. Sustainability in fisheries combines theoretical disciplin ...
and responsible fishing practices worldwide to help preserve fish stocks for future generations. The company first began selling MSC-certified seafood in 2000, and a growing selection of MSC-certified fish continues to be available.
Whole Foods placed third on the U.S. Environmental Protection Agency's list of the "Top 25 Green Power Partners". The company also received the EPA Green Power Award in 2004 and 2005 and Partner of the Year award in 2006 and 2007. A January 8, 2007, Environmental Protection Agency
A biophysical environment is a biotic and abiotic surrounding of an organism or population, and consequently includes the factors that have an influence in their survival, development, and evolution. A biophysical environment can vary in scale f ...
(EPA) report listed Whole Foods Market as the second-highest purchaser of green power nationwide, citing its actions as helping drive the development of new renewable energy sources for the electricity generation. The EPA report showed Whole Foods Market using 463.1 million kilowatt hours annually. It was covered, 100 percent net-wise, by its total electricity from biomass, geothermal, small-hydro, solar, and wind sources.
Whole Foods signed an agreement with SolarCity
SolarCity Corporation was a publicly traded company headquartered in Fremont, California that sold and installed solar energy generation systems as well as other related products and services to residential, commercial, and industrial customers ...
to install solar panels on up to 100 stores.
Eliminating plastic
In January 2008, Whole Foods Market was the first U.S. supermarket to commit to eliminating disposable plastic grocery bags to help protect the environment and conserve resources, and many stores serve as a collection point for shoppers to recycle their plastic bags.
On Earth Day
Earth Day is an annual event on April 22 to demonstrate support for environmental protection. First held on April 22, 1970, it now includes a wide range of events coordinated globally by EarthDay.org (formerly Earth Day Network) including 1 b ...
, April 22, 2008, the chain eliminated the use of disposable plastic grocery bags company-wide at point-of-purchase in favor of reusable bags or paper bags made from recycled paper. The company also began offering "Better Bags", a large and colorful grocery bag made primarily from recycled bottles. The move from the traditional paper/plastic system to reusable bags has been packaged as an initiative the company calls "BYOB – Bring Your Own Bag". The campaign is aimed at reducing pollution by eliminating plastic bags and reducing waste by encouraging bag reuse with "bag refunds" of 5–10 cents, depending on the store.
It still, however, offers single-use plastic bags in its produce department, and does little to discourage persistent use by both customers and Amazon Prime Now shoppers alike.
Humane treatment of animals
In 2002, People for the Ethical Treatment of Animals
People for the Ethical Treatment of Animals (PETA; , stylized as PeTA) is an American animal rights nonprofit organization based in Norfolk, Virginia, and led by Ingrid Newkirk, its international president. PETA reports that PETA entities have ...
began petitioning Whole Foods to take steps to ensure the improvement of treatment of animals sold in the stores.
Whole Foods created the Animal Compassion Foundation in January 2005, on December 5, 2014, the organization registration was canceled nonprofit organization
A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...
, to help other producers evolve their practices to raise animals naturally and humanely. According to Whole Foods Natural Meat Quality Standards and Animal Compassionate Standards, pulling feathers from live ducks, bill trimming, bill heat treatment, toe punching, slitting the webs of the feet, and toe removal are all prohibited in the raising of ducks for Whole Foods Market. Any ducks treated in this manner, treated with antibiotics or antimicrobials, cloned
Cloning is the process of producing individual organisms with identical or virtually identical DNA, either by natural or artificial means. In nature, some organisms produce clones through asexual reproduction. In the field of biotechnology, c ...
, genetically modified
Genetic engineering, also called genetic modification or genetic manipulation, is the modification and manipulation of an organism's genes using technology. It is a set of Genetic engineering techniques, technologies used to change the gene ...
, or not allowed medical treatment when necessary are to be removed from Whole Foods Market stock.
Toxins
In January 2004, in California, the Environmental Working Group
The Environmental Working Group (EWG) is an American activist group that specializes in research and advocacy in the areas of agricultural subsidies, toxic chemicals, drinking water pollutants, and corporate accountability. EWG is a nonprofit ...
and the Center for Environmental Health presented a notice of intent to file an anti-toxin lawsuit against salmon producers. This was in large part due to Whole Foods' involvement, including highlighting the company's failure to warn consumers the fish contained potentially dangerous levels of cancer-causing chemicals known as PCBs.
In February 2006, shareholders
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal owner ...
of Whole Foods filed a resolution asking Whole Foods to report toxic chemicals found in its products. Substances such as Bisphenol A
Bisphenol A (BPA) is a chemical compound primarily used in the manufacturing of various plastics. It is a colourless solid which is soluble in most common organic solvents, but has very poor solubility in water. BPA is produced on an industrial s ...
(BPA), found in products such as baby bottles and children's cups, are controversial. Whole Foods no longer sells baby bottles and children's cups made with BPA.
# In the wake of concern over the safety of seafood imports from China, on July 10, 2007, ''The Washington Post
''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large nati ...
'' reported that Whole Foods imports a small amount of frozen shrimp from China, accounting for less than 2% of the company's total seafood sales. A Whole Foods spokesperson addressed the issue, saying "We're not concerned about the less than 2 percent. It's business as usual for us."
Criticism and controversies
Whole Foods Market is considered anti-labor by most worker organizations and has been criticized that its products may not be as progressive as they are touted to be. Author Michael Pollan
Michael Kevin Pollan (; born February 6, 1955) is an American author and journalist, who is currently Professor of the Practice Non-Fiction and the first Lewis K. Chan Arts Lecturer at Harvard University. Concurrently, he is the Knight Professo ...
has contended that the supermarket chain has done well in expanding the organic market but has done so at the cost of local food
Local food is food that is produced within a short distance of where it is consumed, often accompanied by a social structure and supply chain different from the large-scale supermarket system.
Local food (or "locavore") movements aim to con ...
s, regional producers, and distributors. Parts of the debate have taken place publicly through a series of letters between Pollan and Whole Foods Market CEO John Mackey.
Whole Foods announced in June 2006 that it would stop selling live lobster
Lobsters are a family (biology), family (Nephropidae, Synonym (taxonomy), synonym Homaridae) of marine crustaceans. They have long bodies with muscular tails and live in crevices or burrows on the sea floor. Three of their five pairs of legs ...
s and crabs, but in February 2007 made an exception for a Portland, Maine
Portland is the largest city in the U.S. state of Maine and the seat of Cumberland County. Portland's population was 68,408 in April 2020. The Greater Portland metropolitan area is home to over half a million people, the 104th-largest metropol ...
store for its ability to meet "humane standards". The lobsters are kept in private compartments instead of being piled on top of one another in a tank, and employees use a device that gives them a 120-volt shock so that they are not boiled alive in a pot of water. This decision was criticized by ex- lobsterman Trevor Corson
Trevor Corson is a writer, and author of the books ''The Secret Life of Lobsters'' and ''The Story of Sushi''.
Corson spent two years studying philosophy in China, three years in Japan living in temples and studying Buddhism, and two years worki ...
as damaging a New England tradition and as removing people's connection to where their food actually comes from. In 2022, Whole Foods said it would temporarily stop selling Maine lobsters due to sustainability issues and a possible risk to whales.
Ronnie Cummins, national director of the United States Organic Consumers Association
The Organic Consumers Association (OCA) is a non-profit advocacy group for the organic agriculture industry based in Minnesota. The organization's members include subscribers to their online newsletters, volunteers, supporters, and retail outlets ...
, opined that "Whole Foods Market now is a big-box retailer – and it's much more concerned about competing with the other big boxes than issues of ethics and sustainability." Similarly, researcher Stacy Mitchell of the New Rules Project argues that the corporation's aggressive marketing of local food is more hype than substance.
Whole Foods has frequently been the subject of resistance or boycotts in response to proposed store locations. The corporation has also been criticized for its aggressive policy of promoting its own in-house brands (''e.g.'' 365) at the expense of smaller or local independent brands.
On August 11, 2009, Whole Foods CEO John Mackey published an editorial in ''The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
'' criticizing the Patient Protection and Affordable Care Act
The Affordable Care Act (ACA), formally known as the Patient Protection and Affordable Care Act and colloquially known as Obamacare, is a landmark U.S. federal statute enacted by the 111th United States Congress and signed into law by Presi ...
; the editorial was controversial in the natural foods community.
The company has created other controversies at various times involving business practices, labor issues, product selection, and failure to support farmers and suppliers. In March 2013, Whole Foods promised to label GMO-containing products in North American stores by 2018. The company has drawn criticism for questionable science behind the claims of benefit of its products, including encouraging and selling drugs that are described to work under homeopathic
Homeopathy or homoeopathy is a pseudoscientific system of alternative medicine. It was conceived in 1796 by the German physician Samuel Hahnemann. Its practitioners, called homeopaths, believe that a substance that causes symptoms of a dise ...
principles.
In 2013, two workers in Albuquerque, New Mexico were suspended for speaking Spanish. The resulting investigation revealed that Whole Foods has a policy of speaking "English to customers and other Team Members while on the clock". The company soon revised its policy.
In 2014, the company agreed to pay an $800,000 settlement in response to allegations that its California stores were charging more per weight than what its labels indicated. Whole Foods continued this practice despite the settlement, with investigators alleging thousands of continued violations well into 2015. In 2015, the CEOs made a public admission of this happening in New York after a New York City Department of Consumer Affairs
The New York City Department of Consumer and Worker Protection (DCWP), formerly the Department of Consumer Affairs (DCA), is an agency of the Government of New York City.
History
The duties were performed by the Commissioner of Public Markets un ...
investigation.
Whole Foods has faced lawsuits in California over the presence of carcinogens. In March 2008, following a study by the Organic Consumers Association
The Organic Consumers Association (OCA) is a non-profit advocacy group for the organic agriculture industry based in Minnesota. The organization's members include subscribers to their online newsletters, volunteers, supporters, and retail outlets ...
, reports of high levels of 1,4-Dioxane found in body care products at Whole Foods, prompted the Attorney General of California
The attorney general of California is the state attorney general of the Government of California. The officer's duty is to ensure that "the laws of the state are uniformly and adequately enforced" (Constitution of California, Article V, Section ...
to file a lawsuit against the company for a violation of Proposition 65
Proposition 65 (formally titled The Safe Drinking Water and Toxic Enforcement Act of 1986, and also referred to as Prop 65) is a California law passed by direct voter initiative in 1986 by a 63%–37% vote. Its goals are to protect drinking water s ...
. Civil penalties of up to $2,500 a day were expected to be awarded. The action claimed that 365 along with brands sold by other cosmetic companies did not include a label warning about the chemical; spokesperson Libba Letton stated that the company did "not believe that these products represent a health risk or are in excess of California's Proposition 65 Safe Harbor level for 1,4-Dioxane" while consumer activist David Steinman
David Steinman is an environmentalist, journalist, consumer health advocate, publisher and author. He has published five books focusing largely on environmental, dietary, and consumer safety issues, including ''Diet for a Poisoned Planet'' in 19 ...
urged them "to stop treating the inclusion of cancer-causing chemicals in their products as 'business as usual'". Proposition 65 was invoked again in 2013 when the state sued Whole Foods and other retailers over the presence of lead in certain candies.
In May 2014, Whole Foods launched a pilot program to sell rabbit meat in 5 of its 12 market regions. Because domestic rabbits are the eighth most common pet in the United States as well as an animal rescued and sheltered alongside cats and dogs, this decision triggered a nationwide boycott of Whole Foods by the vegetarian activist House Rabbit Society and their supporters. In June 2014 Whole Foods awarded a financial grant to Oz Family Farms, a family-owned rabbit meat business.
In January 2015, a group of activists organized under the network Direct Action Everywhere
Direct Action Everywhere (DxE) is an international grassroots network of animal rights activists founded in 2013 in the San Francisco Bay Area. DxE uses disruptive protests and non-violent direct action tactics, such as open rescue of animals fr ...
(DxE) released a video of laying hens from a Northern California farm that supplies eggs to Whole Foods. In the video, which featured footage of crowded, dirty henhouses and injured birds, DxE contended that the hens' welfare was severely compromised, even though numerous boards had labeled the farm as " Certified Humane".
In 2015, animal rights groups People for the Ethical Treatment of Animals
People for the Ethical Treatment of Animals (PETA; , stylized as PeTA) is an American animal rights nonprofit organization based in Norfolk, Virginia, and led by Ingrid Newkirk, its international president. PETA reports that PETA entities have ...
and Direct Action Everywhere released investigations criticizing Whole Foods animal welfare standards and accusing Whole Foods suppliers of animal cruelty
Cruelty to animals, also called animal abuse, animal neglect or animal cruelty, is the infliction by omission (neglect) or by commission by humans of suffering or Injury, harm upon non-human animals. More narrowly, it can be the causing of harm ...
. After the release of its investigation, PETA reversed its previous support for Whole Foods' animal welfare rating system, writing that "Under the guise of compassion, Whole Foods is profiting from violence against animals." PETA co-founder Ingrid Newkirk
Ingrid Elizabeth Newkirk (née Ward; born June 11, 1949) is a British-American animal activist and the president of People for the Ethical Treatment of Animals (PETA), the world's largest animal rights organization. She is the author of several ...
criticized Whole Foods' animal welfare
Animal welfare is the well-being of non-human animals. Formal standards of animal welfare vary between contexts, but are debated mostly by animal welfare groups, legislators, and academics. Animal welfare science uses measures such as longevity ...
approach based on the DxE and PETA investigations, arguing that supposed welfare failures indicate a need for animal rights
Animal rights is the philosophy according to which many or all sentient animals have moral worth that is independent of their utility for humans, and that their most basic interests—such as avoiding suffering—should be afforded the sa ...
rather than welfare. Whole Foods has come under harsh criticism from abolitionist
Abolitionism, or the abolitionist movement, is the movement to end slavery. In Western Europe and the Americas, abolitionism was a historic movement that sought to end the Atlantic slave trade and liberate the enslaved people.
The British ...
vegans such as Gary L. Francione
Gary Lawrence Francione (born May 1954) is an American academic in the fields of law and philosophy. He is Board of Governors Professor of Law and Katzenbach Scholar of Law and Philosophy at Rutgers University in New Jersey. He is also a visitin ...
who view the company's policies as a betrayal of the animal rights
Animal rights is the philosophy according to which many or all sentient animals have moral worth that is independent of their utility for humans, and that their most basic interests—such as avoiding suffering—should be afforded the sa ...
position.
In January 2016, SJ Collins Enterprises, a developer who often works with Whole Foods, petitioned the Sarasota County
Sarasota County is a county located in Southwest Florida. At the 2020 US census, the population was 434,006. Its county seat is Sarasota and its largest city is North Port. Sarasota County is part of the North Port–Sarasota–Bradenton, FL m ...
board of county commissioners to allow the removal of a 5-acre protected wetlands
A wetland is a distinct ecosystem that is flooded or saturated by water, either permanently (for years or decades) or seasonally (for weeks or months). Flooding results in oxygen-free (anoxic) processes prevailing, especially in the soils. The ...
so that they could build a surface parking lot for a planned Whole Foods shopping center and Wawa gas station at the intersection of University Parkway and Honore Avenue. The county commission voted 4–1 to allow the re-zoning and accept 41 acres of replacement wetlands. The lone commissioner voting against the proposal, Charles Hines, stated that approval of the petition could create a domino effect
A domino effect or chain reaction is the cumulative effect generated when a particular event triggers a chain of similar events. This term is best known as a mechanical effect and is used as an analogy to a falling row of dominoes. It typically ...
leading to the destruction of other protected areas.
In June 2016, US food safety inspectors warned the company that violations discovered at Whole Foods' Everett, Massachusetts
Everett is a city in Middlesex County, Massachusetts, United States, directly north of Boston, bordering the neighborhood of Charlestown. The population was 49,075 at the time of the 2020 United States Census.
Everett was the last city in the Un ...
plant could result in food being "contaminated with filth or rendered injurious to health."
In April 2018, Whole Foods Market faced social media backlash over the opening of the third location of the independent restaurant chain, "Yellow Fever", in a Whole Foods 365 store in Long Beach, California for possible racist undertones.
In April 2020, ''Business Insider
''Insider'', previously named ''Business Insider'' (''BI''), is an American financial and business news website founded in 2007. Since 2015, a majority stake in ''Business Insider''s parent company Insider Inc. has been owned by the German publ ...
'' revealed extensive monitoring of stores to identify and target unionization
The organizing model, as the term refers to trade unions (and sometimes other social-movement organizations), is a broad conception of how those organizations should recruit, operate, and advance the interests of their members, though the specific ...
, using a metric based on racial diversity
A race is a categorization of humans based on shared physical or social qualities into groups generally viewed as distinct within a given society. The term came into common usage during the 1500s, when it was used to refer to groups of variou ...
, employee loyalty, turnover and more.
In June 2020, two Whole Foods employees said they were sent home for wearing masks that stated "I can't breathe" and "Black Lives Matter." A Whole Foods spokesperson stated that, " l Whole Foods Market Team Members have signed acknowledgments of our longstanding company dress code, which prohibits any visible slogans, messages, logos or advertising that are not company-related, on any article of clothing, including face masks."
In November 2020, Whole Foods banned Canadian employees from wearing a Remembrance Day poppy, the national symbol of remembrance worn by Canadians on Remembrance Day
Remembrance Day (also known as Poppy Day owing to the tradition of wearing a remembrance poppy) is a memorial day observed in Commonwealth member states since the end of the First World War to honour armed forces members who have died in t ...
. On November 6, 2020, the House of Commons of Canada
The House of Commons of Canada (french: Chambre des communes du Canada) is the lower house of the Parliament of Canada. Together with the Crown and the Senate of Canada, they comprise the bicameral legislature of Canada.
The House of Common ...
unanimously adopted a motion "to condemn Whole Foods and its owner Jeff Bezos for banning its employees from wearing poppies on their uniform". The same day, Whole Foods reversed its policy, saying "Given the learnings of today, we are welcoming Team Members to wear the poppy pin in honour of Remembrance Day."
Awards and recognition
Whole Foods Market was included in ''Fortune
Fortune may refer to:
General
* Fortuna or Fortune, the Roman goddess of luck
* Luck
* Wealth
* Fortune, a prediction made in fortune-telling
* Fortune, in a fortune cookie
Arts and entertainment Film and television
* ''The Fortune'' (1931 film) ...
'' magazine's annual list of the "100 Best Companies to Work For" yearly from the list's inception in 1998 to being placed number 44 in 2014. The chain has also won a number of awards for social responsibility including a first-place ranking by Harris Interactive / The Wall Street Journal in 2006 and British trade magazine ''The Grocer
''The Grocer'' is a British magazine devoted to grocery sales, published by William Reed Business Media. It has been published since 1862.
The Grocer 33
A feature of the magazine is 'The Grocer 33'. This is a survey of each of the 5 leading s ...
'' named it the "World's Greatest Food Retailer" the same year. It has received past spots on the "100 Best Corporate Citizens" list published by ''Corporate Responsibility Officer''. In 2014, ''Supermarket News'' ranked Whole Foods number 19 on its list of "Top 75 North American Retailers."
Labor relations and anti-union activism
Among its core values, the company lists "supporting team member happiness and excellence". The company maintains that its treatment of workers obviates the need for labor union
A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ( ...
s: At its U.S. stores, after 800 service hours, full-time workers are given an option to purchase health insurance
Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...
coverage starting at $20 per paycheck for themselves, and spouse and dependent coverage for an additional charge. Workers also have access to a company-funded personal wellness account, and the starting pay at most stores is highly competitive.
Whole Foods' health insurance plan is notable for its high deductibles – $2000 for general medical expenses, and $1000 for prescriptions. However, employees receive $300 to $1800 per year (depending on years of service) in personal wellness funds. Once an employee has met the deductibles, insurance covers 80% of general medical costs and prescriptions but not for any type of mental illness
A mental disorder, also referred to as a mental illness or psychiatric disorder, is a behavioral or mental pattern that causes significant distress or impairment of personal functioning. Such features may be persistent, relapsing and remitti ...
. CEO Mackey drew attention to the insurance program (offered through United Health Care in the US) for its employees in an op-ed in ''The Wall Street Journal
''The Wall Street Journal'' is an American business-focused, international daily newspaper based in New York City, with international editions also available in Chinese and Japanese. The ''Journal'', along with its Asian editions, is published ...
''. In the article he called his company's insurance plan a viable alternative to "Obamacare". Mackey summed up his antipathy toward universal coverage in his op-ed
An op-ed, short for "opposite the editorial page", is a written prose piece, typically published by a North-American newspaper or magazine, which expresses the opinion of an author usually not affiliated with the publication's editorial board. O ...
by stating:
A careful reading of both the Declaration of Independence and the Constitution will not reveal any intrinsic right to health care
The right to health is the economic, social, and cultural right to a universal minimum standard of health to which all individuals are entitled. The concept of a right to health has been enumerated in international agreements which include the U ...
, food or shelter. That's because there isn't any. This "right" has never existed in America.
A "Boycott Whole Foods" page on Facebook was created in response to John Mackey's position on health care.
Mackey, a libertarian
Libertarianism (from french: libertaire, "libertarian"; from la, libertas, "freedom") is a political philosophy that upholds liberty as a core value. Libertarians seek to maximize autonomy and political freedom, and minimize the state's e ...
, believes that unions facilitate an adversarial relationship between management and labor. An attempt at unionizing in Madison, Wisconsin
Madison is the county seat of Dane County and the capital city of the U.S. state of Wisconsin. As of the 2020 census the population was 269,840, making it the second-largest city in Wisconsin by population, after Milwaukee, and the 80th-lar ...
, in 2002 was met with resistance from store management and Whole Foods was accused by labor activists of union busting
Union busting is a range of activities undertaken to disrupt or prevent the formation of trade unions or their attempts to grow their membership in a workplace.
Union busting tactics can refer to both legal and illegal activities, and can range ...
. Employees at the Madison store voted in favor of unionization. Whole Foods then refused to bargain with their employees. After a year, the company moved to decertify the union. Further attempts at unionizing Whole Foods Market stores have been unsuccessful. Whole Foods launched a nationwide campaign, requiring workers to attend "Union Awareness Training," complete with Power Point presentations.
Whole Foods was criticized for its refusal to support a campaign by the United Farm Workers
The United Farm Workers of America, or more commonly just United Farm Workers (UFW), is a labor union for farmworkers in the United States. It originated from the merger of two workers' rights organizations, the Agricultural Workers Organizing ...
(UFW) on behalf of agricultural workers laboring on strawberry farms. During the late 1990s, the UFW persuaded several large supermarket chains to sign a pledge in support of improved wages and working conditions for strawberry pickers. Whole Foods chose instead to support the farm workers indirectly by holding a "National 5% Day" where five percent of that day's sales – $125,000 – was donated to organizations which provide social services to farmworkers.
On September 28, 2015, Whole Foods announced layoffs of 1,500 jobs, which is 1.6 percent of its workforce, in an effort to lower prices. The eliminated jobs would come from regional and store positions over the next two months.
Whole Foods hired the Labor Relations Consulting or "union busting
Union busting is a range of activities undertaken to disrupt or prevent the formation of trade unions or their attempts to grow their membership in a workplace.
Union busting tactics can refer to both legal and illegal activities, and can range ...
" company Kulture Consulting, LLC on May 23, 2016. This was in response to a union election at a Whole Foods distribution center in Florida. A member of the National Labor Relations Board
The National Labor Relations Board (NLRB) is an independent agency of the federal government of the United States with responsibilities for enforcing U.S. labor law in relation to collective bargaining and unfair labor practices. Under the Natio ...
(NLRB) wrote that Kulture's CEO and founder Peter List had "in his effort to 'persuade' workers...engaged in 'patently unlawful' activities" during a 2007 organizing campaign.
In September 2019, Whole Foods announced it will cut the health benefits of part-time workers, which will affect 2% of the workforce, or 1,900 employees.
Management system
Employee structure and culture
Whole Foods Market consists of twelve geographic regions, each with its own president, regional administrative team, store-level leadership, and store-level team members. A 4-tier hierarchy of employment exists within the Whole Foods Company: Store Employment, Facilities Employment, Regional Offices, and Global Headquarters.
Employee benefits and incentives
To help employees learn about products, the company has instituted a mentoring program and developed an online portal
A web portal is a specially designed website that brings information from diverse sources, like emails, online forums and search engines, together in a uniform way. Usually, each information source gets its dedicated area on the page for displayin ...
called "Whole Foods Market University" to aid in training. Internal parlance refers to "team leaders" as opposed to "managers" and stores sometimes offer prizes for competing teams. A 2014 analysis of 2012 figures found that Whole Foods Market was "among the least generous companies" in terms of its 401(k) savings program.
Whole Foods Market has an employee discount
Discounts and allowances are reductions to a basic price of goods or services.
They can occur anywhere in the distribution channel, modifying either the manufacturer's list price (determined by the manufacturer and often printed on the package) ...
; while all employees are provided a standard base discount rate of 20% on all store purchases, higher rates, up to 30%, can be earned based upon employee physical fitness health tests that are given yearly. These fitness exams are taken at the option of the employee.
Company structure
In total, Whole Foods Market is composed of seventeen companies, each specializing in a different product. In the 1990s, while new stores were being opened, other natural food chain stores were being acquired for horizontal integration. This led to the Federal Trade Commission challenging the eventual merger with Wild Oats on the basis that it violated antitrust laws, essentially eliminating competition and inflating prices in the health foods market.
Subsidiary companies and suppliers
Whole Foods Market is based on a system of decentralized buying. Each vendor is approved at the regional level for corporate standards such as being non-GMO and fair trade
Fair trade is an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines the payment of higher prices to exporters with improved social and enviro ...
. Individual stores then decide which approved products to stock. They have a rolling ten-year distribution arrangement with UNFI
United Natural Foods, Inc. (UNFI) is a Providence, Rhode Island–based natural and organic food company. The largest publicly traded wholesale distributor of health and specialty food in the United States and Canada, it is Whole Foods Market
...
.
365 by Whole Foods Market
In June 2015, the company announced a millennial-focused, and more affordable version of its regular stores, called "365 By Whole Foods Market". In addition to using digital price tags, in-store communication will largely be done through a smartphone app. In addition, the stores will have the goal of zero waste
Zero waste is a set of principles focused on waste prevention that encourages redesigning resource life cycles so that all products are reused. The goal of this movement is to avoid sending trash to landfills, incinerators, or the ocean. Curren ...
, donating all leftover food and using LED lights, as well as carbon dioxide-powered refrigeration cases. Jeff Turnas is president of the division.
To cut costs, customers unload bulkier products directly off a pallet. Some items, like produce, are priced per item instead of by weight. For items that are sold by weight, the customers weigh, barcode, and tag those items before they reach the check-out counter. Unlike the regular stores, the 365 stores offer a rewards program.
The first 365 By Whole Foods Market store opened in May 2016 in the Silver Lake
Silver is a chemical element with the Symbol (chemistry), symbol Ag (from the Latin ', derived from the Proto-Indo-European wikt:Reconstruction:Proto-Indo-European/h₂erǵ-, ''h₂erǵ'': "shiny" or "white") and atomic number 47. A soft, whi ...
neighborhood of Los Angeles. A second location opened two months later in Lake Oswego, Oregon
Lake Oswego () is a city in the U.S. state of Oregon, primarily in Clackamas County, with small portions extending into neighboring Multnomah and Washington counties. Located about south of Portland and surrounding the Oswego Lake, the town w ...
, followed by a third store two months after that in Bellevue, Washington
Bellevue ( ) is a city in the Eastside region of King County, Washington, United States, located across Lake Washington from Seattle. It is the third-largest city in the Seattle metropolitan area and has variously been characterized as a s ...
. In April 2017, a fourth location opened in Cedar Park, Texas
Cedar Park is a city and a major suburb of Austin in the state of Texas, approximately to the north-west of the center of Austin. According to the 2020 U.S. Census, the city's population was 77,595.
History
Before the arrival of European sett ...
. In August 2017, a fifth location was opened in Santa Monica, California
Santa Monica (; Spanish language, Spanish: ''Santa Mónica'') is a city in Los Angeles County, California, Los Angeles County, situated along Santa Monica Bay on California's South Coast (California), South Coast. Santa Monica's 2020 United Sta ...
. In September 2017, a sixth location was opened in Akron, Ohio
Akron () is the fifth-largest city in the U.S. state of Ohio and is the county seat of Summit County, Ohio, Summit County. It is located on the western edge of the Glaciated Allegheny Plateau, about south of downtown Cleveland. As of the 2020 C ...
. In January 2018, a seventh location was opened in Fort Greene
Fort Greene is a neighborhood in the northwestern part of the New York City borough of Brooklyn. The neighborhood is bounded by Flushing Avenue and the Brooklyn Navy Yard to the north, Flatbush Avenue Extension and Downtown Brooklyn to the wes ...
neighborhood of Brooklyn
Brooklyn () is a borough of New York City, coextensive with Kings County, in the U.S. state of New York. Kings County is the most populous county in the State of New York, and the second-most densely populated county in the United States, be ...
, New York. The eighth location for the chain was opened in April 2018 in Long Beach, California
Long Beach is a city in Los Angeles County, California. It is the 42nd-most populous city in the United States, with a population of 466,742 as of 2020. A charter city, Long Beach is the seventh-most populous city in California.
Incorporate ...
, followed by the opening of the ninth location a month later in Upland, California
Upland is a city in San Bernardino County, California, United States on the border with neighboring Los Angeles County. The municipality is located at an elevation of 1,242 feet (379 m). As of the 2020 census, the city had a population of 79,040 ...
. A tenth store was opened in the Independence Heights district of Houston, Texas
Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
, in August 2018. In December 2018, the eleventh and twelfth stores were opened at almost the same time in the Buckhead
Buckhead is the uptown commercial and residential district of the city of Atlanta, Georgia, comprising approximately the northernmost fifth of the city. Buckhead is the third largest business district within the Atlanta city limits, behind Downt ...
district of Atlanta
Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
and in Decatur, Georgia
Decatur is a city in, and the county seat of, DeKalb County, Georgia, which is part of the Atlanta metropolitan area. With a population of 24,928 in the 2020 census, the municipality is sometimes assumed to be larger since multiple ZIP Codes in ...
.
There were other future locations that would include five 365 stores in Illinois, Indiana, Ohio, Georgia, and Florida.
Although there were as many as twenty two 365 stores under various stages of construction by early July 2017, progress at most of these construction sites came to a halt upon the news of the possible acquisition of the parent company by Amazon and there was no information at the time if and when the construction at any of the building sites would resume. As a result of the firm's merger with Amazon, Whole Foods canceled the continuation of work at the construction sites for at least two 365 stores. In January 2018, the Fresh Thyme Farmers Market chain announced that they were taking over the abandoned 365 store construction site at College Mall
College Mall is a regional shopping mall located in Bloomington, Indiana. This is home to Indiana University's flagship campus. The mall's anchor stores are Dick's Sporting Goods and Target. The mall also features a Fresh Thyme Farmers Market ...
in Bloomington, Indiana
Bloomington is a city in and the county seat of Monroe County, Indiana, Monroe County in the central region of the U.S. state of Indiana. It is the List of municipalities in Indiana, seventh-largest city in Indiana and the fourth-largest outside ...
to open a second Bloomington-area store. In the same month, the City of Los Alamitos, California
Los Alamitos () is a city in Orange County, California. The city was incorporated in March 1960. The population was 11,780 at the 2020 census, up from 11,449 at the 2010 census. The adjacent unincorporated community of Rossmoor uses the same 9 ...
, announced the abandonment of a shopping development that would have been anchored by a 365 store.
In reviewing the new retail format, a reporter for The Motley Fool
The Motley Fool is a private financial and investing advice company based in Alexandria, Virginia. It was founded in July 1993 by co-chairmen and brothers David Gardner and Tom Gardner, and Erik Rydholm, who has since left the company. The compa ...
wrote that the new stores were "closer to a combination of a fruit stand, convenience store, and a restaurant than a traditional grocery store" while a MarketWatch
MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with ''The Wall Street Journal'' and ''Barron's'', it is a subsidiary of Dow Jones & Company, a property of News Corp.
Histor ...
reporter called them "hipster havens" due to their use of high tech as a cost-cutting and efficiency measure. Most reviews were very positive, although some customers said that they missed talking to actual people when placing food orders via tablets.
In January 2019, it was announced that the 365 by Whole Foods Market concept would be discontinued, but the existing locations would remain open for the moment. The following month, it was announced that all existing 365 stores would be converted into regular Whole Foods stores by the end of the year.
See also
* "It's Getting Real in the Whole Foods Parking Lot
"Whole Foods Parking Lot" is a 2011 rap song by Fog and Smog. The song humorously describes various interactions occurring in and around a Whole Foods Market. The music video for the song went viral.
Background
The video was produced by David Wit ...
" (song)
* Specialty foods
A specialty food is a food that is typically considered as a "unique and high-value food item made in small quantities from high-quality ingredients". Consumers typically pay higher prices for specialty foods, and may perceive them as having variou ...
* Sustainable business
A sustainable business, or a green business, is an enterprise that has minimal negative impact or potentially a positive effect on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom ...
References
Further reading
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{{Authority control
1980 establishments in Texas
1998 initial public offerings
2017 mergers and acquisitions
Amazon (company) acquisitions
Companies based in Austin, Texas
Companies formerly listed on the Nasdaq
Health food stores
Organic food retail organizations
Retail companies established in 1980
Shorty Award winners
Supermarkets of Canada
Supermarkets of the United Kingdom
Supermarkets of the United States