<p> Speaking at the UBS Global Consumer Conference this week, Whole Foods Market Co-CEO Walter E. Robb discussed the future evolution of the company, the changing retail industry, the growth of natural and organic foods, and the possible changes in the company's operational structure. Here’s a quick look at what he had to say…</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><B>Future Evolution and Strategy of Whole Foods</b></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Robb said that the company has worked out a roadmap to more than 1200 U.S. stores compared to its previous target of 1000 stores. With that goal in mind, Whole Foods has currently signed 107 additional leases and expects to reach more than 500 stores by 2017. There are currently more than 370 Whole Foods stores in operation.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> He anticipates accelerating square footage growth by 9 or 10% in the next couple of years. “That represents a mix of about 2/3 existing markets and 1/3 new markets,” he noted.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> To support this self-funded growth, Robb said, “We’re aggressively saying where can we upgrade the store or move the store where there’s an opportunity to do more business, and we’re also going back to step up the amount of capital we’re investing.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> “We’re building some of our best stores we’ve ever built,” he said. “The innovation quality at Whole Foods now is as good as I’ve ever seen it.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Currently, Whole Foods is conducting delivery experiments with Google in the Bay Area right now, which it plans to expand. He also said that the company is continuing work in the digital online space, which hasn’t been announced yet. “You’ll see the pieces of this strategy start to unfold over the next 12 months.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><B>The Changing Retail Industry</b></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> When asked how his perspective is different from other traditional grocers, Robb mentioned that he thinks that these traditional grocers are taking share away from each other.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> “We are not them, and they are not us. We’re happy to compete with anybody. We are different from them, and over time that will continue to become clear. As customers say they want more of these sorts of choices, we’re going to be there to serve them.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Discussing the consumer, Robb said that the last six months have been choppy, but expects the environment to slowly improve. “It’s just a slow incremental build from here. I think the customer is finding their way. I’d love to see steps taken to support greater economic growth overall, but we’re just going to have to keep working our way forward.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><B>Growth of Natural and Organic Foods</b></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> When asked how he sees Whole Foods fitting into the growth of the natural and organic food industry, Robb said that he believed that the natural products industry is becoming the food industry, calling it “an incredibly vital, growing industry.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">He added, “I think we’re the leaders in that. You’re seeing a tremendous period of transition – with more players in the marketplace and more products becoming available in more places – and you’re going to see some business models that are checked and stressed and tested during this period. I can promise you Whole Foods will be there at the end of the race.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding">The company is also working on a set of new standards focused around conventional produce, including providing consumers with a “view into the use of pesticides on conventional produce” and more effort on transparency on GMO labeling. Robb says he sees tremendous opportunity right now as the organic and natural food market grows larger and larger.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><B>Changes in Operational Structure</b></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Whole Foods may also be moving some of its operations back to its headquarters at Austin, Texas to optimize the company.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> “We’re gradually looking at moving more things to Austin that support the business because it doesn’t make sense to do the same things 12 times. That’s where we expect to pick up some efficiencies. It just makes sense to centralize some functions. And frankly the operators are happy to let some of those things go.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> He added, “What needs to be global is your brand, your standards, your values, your financial disciplines, and you have to hold that sort of framework while putting the operating flexibility where the action is – where the customer is – and that, we’ll continue to do.”</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p> Sounds like there’s lots of interesting things in store for Whole Foods in the future! Stay tuned to AndNowUKnow as we continue following Whole Foods’ future evolution.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.wholefoodsmarket.com/company-info/investor-relations" target="_new"> Whole Foods Market </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
