Whole Foods Market Inc. lowered the top end of its annual same-store sales forecast as competitors move into the natural-foods business.
The chain posted fiscal third-quarter revenue that trailed analysts’ estimates and said same-store sales growth this period has slowed to 5.8 percent. Whole Foods now sees annual growth of as much as 7.3 percent, slightly below a previous forecast.
The grocer, which plans to increase its store base to 1,000 U.S. locations, has tried to boost sales by appealing to health-conscious Americans. It’s seeing more competition from natural and organic-food sellers as chains including Fairway Group Holdings Corp. (FWM:US) and Sprouts Farmers (SFM:US) Market expand.
“It really boiled down to the deceleration of sales in the fourth quarter,” Benjamin Brownlow, an Atlanta-based analyst with Raymond James Financial Inc., said during an interview. Whole Foods may be facing increased competition from other natural-foods supermarkets, he said.
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