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Whole Foods sees food deserts as fertile growth opportunity

By | August 23, 2012, 6:23 AM PDT

The biggest seller of natural foods in America is planning to triple its store count by focusing on so-called deserts in under-served cities and smaller markets with populations about about 75,000.

The strategy is being pioneered in the company’s Detroit store, which is set to open in May, and it marks a big departure for Whole Foods, reports Bloomberg. “We’re accelerating growth,” Walter Robb, the chain’s co-chief executive, told the news service. “That’s going to take us places we have not been to before.”

The market selections are anything but random: the Detroit location, for example, is near Wayne State University and the College for Creative Studies. The company typically sites its stores where the residents are more highly educated than the average population. This is a twist on that strategy.

Apparently, Whole Foods has also been talking to the mayor of Newark and Chicago about possible locations that are underserved by grocery stores. It has already opened operations in smaller markets than usual, such as Glen Mills, Pa., and West Des Moines, Iowa.

These stores have a smaller format than the big ones in more populated areas, which means a smaller selection. But the focus is still on fresh, organice and healthy food choices.

If you think about it, Whole Foods is actually returning to its roots with this strategy. Its first store in Austin, Texas (pictured) had just 19 employees.

[via Bloomberg]

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Heather Clancy

About Heather Clancy

Heather Clancy is a contributing editor for SmartPlanet.

Heather Clancy

Heather Clancy

Contributing Editor

Heather Clancy has written for United Press International, ZDNet, Entrepreneur, Fortune Small Business, the International Herald Tribune and the New York Times. She holds a degree from McGill University. She is based in New Jersey.

Follow her on Twitter.

Heather Clancy

Heather Clancy

I am fascinated about how businesses of all sizes can transform their operations through technology -- not just to make themselves more efficient, but to rise above their competitors. That's the theme for my two ZDNet blogs, Small Business Matters and Next-Gen Partner. For SmartPlanet, I'm focused on profiling inspirational and controversial business leaders who have great leadership lessons to share. I also write regularly and passionately about corporate social responsibility and sustainability issues for GreenBiz.com.

Occasionally, I will pop up at an industry conference in some sort of speaking capacity. In cases where an engagement involves a sponsor that may be covered in this blog, that fact will be disclosed in coverage as appropriate.

My corporate writing work usually consists of crafting research white papers about some aspect of technology or moderating Webcasts. In the event that my commentary (in written, audio or video form) mentions a company for which I have provided consulting advice, I will disclose that fact. However, there is no connection between these projects and topics that I cover in my blogs.

She writes for SmartPlanet and is not an employee of CBS.

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Smaller Markets
I work around the corner from the new Whole Foods in West Des Moines, IA and the place is packed every day. Residents seem a little star-struck with the store so I guess their strategy is working. I just wish their "smaller market" strategy coincided with a "smaller price" strategy as well.
Posted by wally_altoona
24th Aug
+1 Vote
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What a Crock!
What the article doesn't say is how this company has paid hundreds of thousands of dollars to Monsanto to stop Proposition 37 in California. This proposition would force companies to label all foods that have been Genetically Modified. Apparently Whole Foods doesn't want you to know just how much "UN-NATURAL" foods they really sell. Natural food store my ***. You should black list this company and not even enter their store. Hit them where it hurts. Copy this and email it to all your friends.
Posted by forwhomthebellstoll
24th Aug
+1 Vote
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Socially Responsible
Sorry but I disagree. WF is a very socially responsible company with a tremendously loyal fan base. They are doing something right in the marketplace, otherwise they wouldn't be so successful. They do a good job of sourcing their products from companies that agree to their rather strict and high standards of quality. Bash the company all you want. It won't change the shopping habits of millions of shoppers that have made WF one of the more successful companies in an economy that is suffering for lack of national leadership.
Posted by dcr100@...
25th Aug
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