Whole Foods’ 3Q Sales Up

Whole Foods Market Inc. (Austin, Texas) says sales rose 2 percent to $1.9 billion for the third quarter ended July 5, 2009. On a comparable store basis, sales dropped 2.5 percent versus a 2.6 increase during the same period last year; identical store sales, excluding nine relocations and two major expansions, decreased 3.8 percent.

“We are very pleased with our third quarter top-line and bottom-line results,” says John Mackey, chairman, ceo and co-founder of Whole Foods. “We saw our first sequential improvement in comparable store and identical store sales trends in six quarters driven by both average transaction count and basket size trends. We believe we are continuing to strike the right balance between sales and gross margin while exhibiting strong cost control.”

For the 40-week period ended July 5, 2009, sales increased 1 percent to $6.2 billion, as comparable store sales decreased 3.8 percent. During the third quarter, Whole Foods opened four stores, three of which were relocations. So far in the fourth quarter, the company has opened one store in Capitola, Calif., bringing its store total to 282 locations. Two additional stores are expected to open in the fourth quarter.

Ceo John Mackey told The Wall Street Journal that he plans to return the 29-year-old brand to its roots as a natural-foods retailer to reconnect with consumers who are interested in healthy eating but not spending a lot on pricey foods. “We sell a bunch of crap,” he told The Journal. “We’ve decided if Whole Foods doesn’t take a leadership role in educating people about a healthy diet, who the heck is going to do it.”

This fall, the grocery chain plans to launch “healthy eating” initiatives, including cooking demonstrations and recipes. Talks also include an employee program that rewards workers for losing weight, quitting smoking and lowering cholesterol and blood pressure. The company has also lowered prices and expanded its 365 private-label product line by five percent to more than 2000 items.