This Could Be The Key To A Turnaround At Whole Foods
June 3, 2016 | 1 min to read
Credit Suisse is feeling bullish about Whole Foods Market’s turnaround plan, thanks in part to the customers the grocery chain is targeting—and they’re not just millennials.
In the past few years, the organic supermarket’s growth has stalled amid a fiercely competitive landscape as traditional players such as Target TGT 0.31% reach into the organic space, while Trader Joe’s lures consumers away with lower prices. Those intrusions have worried investors about how, and if, Whole Foods can reclaim market share, sending its stock down more than 17% in the past 12 months.
But a team of Credit Suisse analysts led by Edward Kelly wrote in a Wednesday note that they expect Whole Foods to turn around before 2018, due to the company’s aggressive new strategy centered on affordability. Whole Foods has slashed prices, reduced costs, accelerated private brand penetration, and rolled out a value format in its new chain, 365.
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