Is there room for another high-end grocer out there? Fresh Market's experience says yes.
As industry leader Whole Foods (WFMI) gets back into double-digit sales growth after the recession, Fresh Market is also enjoying a rebound with its smaller-box model. The 28-year-old chain has ramped up its store openings this year, as same-store sales rise around 5% over last year.
The company may benefit from an overall warming of the IPO market. While Chinese companies have gotten much of the hype, domestic retailers Vera Bradley (VRA) and Bravo Brio Restaurant Group (BBRG) have also debuted strongly.
What remains to be seen is how investors react to an offering that's 100% insider selling. The Berry family, which founded and has long owned the company, is not selling out, but it's using the IPO to severely prune its stakes.
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