WFMI » Topics » Growth Strategy

This excerpt taken from the WFMI 10-K filed Dec 8, 2005.

Growth Strategy

 

Whole Foods Market’s growth strategy is to expand primarily through new store openings. We have a disciplined, opportunistic real estate and acquisition strategy, opening or acquiring stores in existing trade areas as well as new markets. Our new stores typically range in size between 50,000 to 60,000 square feet and are located on premium real estate sites. We

 

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have also grown through acquisitions, with approximately 24% of our existing square footage coming from acquisitions. Because the natural foods retailing industry is highly fragmented and comprised of many smaller local and regional chains, we may continue to pursue acquisitions of smaller chains that provide access to desirable markets, locations and experienced team members. Such acquisitions, however, are expected to have less of an impact on our future store growth and financial results than they have had in the past primarily due to the growing base size of the Company.

 

We typically relocate a small number of our stores each fiscal year to larger locations with improved visibility and parking. For stores relocated in fiscal years 2000 through 2005, the overall average increase in size was approximately 107%. Our historical store growth is summarized below:

 

     2005

    2004

    2003

    2002

    2001

 

Stores at beginning of fiscal year

   163     145     135     126     117  

Stores opened

   15     12     12     11     12  

Acquired stores

   —       7     —       3     —    

Relocations and closures

   (3 )   (1 )   (2 )   (5 )   (3 )
    

 

 

 

 

Stores at end of fiscal year

   175     163     145     135     126  
    

 

 

 

 

Total square footage at end of fiscal year (in thousands)

   5,819     5,145     4,545     4,098     3,598  
    

 

 

 

 

 

As of November 9, 2005, we had signed leases for 65 stores averaging approximately 55,000 square feet in size, which is approximately 64% larger than the average size of our existing store base. Square footage under development at November 9, 2005 was approximately 3.7 million, equal to approximately 60% of our existing store base. We currently operate seven stores within the 60,000 to 80,000 square-foot range, with an additional 21 stores of that size in development. We are confident about the potential future returns of these larger stores, as we believe they appeal to a broader customer base, take longer to reach maximum capacity, and are less vulnerable to competition as they create a higher barrier to entry.

 

This excerpt taken from the WFMI 10-K filed May 18, 2005.

Growth Strategy

 

Whole Foods Market’s growth strategy is to expand through a combination of new store openings and acquisitions of existing stores. We have a disciplined, opportunistic real estate and acquisition strategy, opening or acquiring stores in existing trade areas as well as new markets. Our new stores typically range between 40,000 to 60,000 square feet and are located on premium real estate sites. We have also grown through acquisitions, with approximately 33% of our store base consisting of acquired stores. Because the natural foods retailing industry is highly fragmented and comprised of many smaller local and regional chains, we may continue to pursue acquisitions of smaller chains that provide access to desirable markets, locations and experienced team members. Such acquisitions, however, are expected to have less of an impact on our future store growth and financial results than they have had in the past primarily due to the growing base size of the Company.

 

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Index to Financial Statements

We typically relocate a small number of our stores each fiscal year to larger locations with improved visibility and parking. For stores relocated in fiscal years 1999 through 2004, the overall average increase in size was approximately 95%. Our historical store growth is summarized below:

 

     2004

    2003

    2002

    2001

    2000

 

Stores at beginning of fiscal year

   145     135     126     117     100  

Stores opened

   12     12     11     12     17  

Acquired stores

   7     —       3     —       3  

Relocations and closures

   (1 )   (2 )   (5 )   (3 )   (3 )
    

 

 

 

 

Stores at end of fiscal year

   163     145     135     126     117  
    

 

 

 

 

Total square footage at end of fiscal year (in thousands)

   5,145     4,545     4,098     3,598     3,180  
    

 

 

 

 

 

As of November 10, 2004, we had signed leases for 53 stores averaging approximately 49,000 square feet in size, which is approximately 55% larger than our existing store base average. Square footage under development at November 10, 2004 was approximately 2.6 million, equal to approximately 50% of our existing store base.

 

This excerpt taken from the WFMI 10-K filed Mar 7, 2005.

Growth Strategy

 

Whole Foods Market’s growth strategy is to expand through a combination of new store openings and acquisitions of existing stores. We have a disciplined, opportunistic real estate and acquisition strategy, opening or acquiring stores in existing trade areas as well as new markets. Our new stores typically range between 40,000 to 60,000 square feet and are located on premium real estate sites. We have also grown through acquisitions, with approximately 33% of our store base consisting of acquired stores. Because the natural foods retailing industry is highly fragmented and comprised of many smaller local and regional chains, we may continue to pursue acquisitions of smaller chains that provide access to desirable markets, locations and experienced team members. Such acquisitions, however, are expected to have less of an impact on our future store growth and financial results than they have had in the past primarily due to the growing base size of the Company.

 

6


Table of Contents
Index to Financial Statements

We typically relocate a small number of our stores each fiscal year to larger locations with improved visibility and parking. For stores relocated in fiscal years 1999 through 2004, the overall average increase in size was approximately 95%. Our historical store growth is summarized below:

 

     2004

    2003

    2002

    2001

    2000

 

Stores at beginning of fiscal year

   145     135     126     117     100  

Stores opened

   12     12     11     12     17  

Acquired stores

   7     —       3     —       3  

Relocations and closures

   (1 )   (2 )   (5 )   (3 )   (3 )
    

 

 

 

 

Stores at end of fiscal year

   163     145     135     126     117  
    

 

 

 

 

Total square footage at end of fiscal year (in thousands)

   5,145     4,545     4,098     3,598     3,180  
    

 

 

 

 

 

As of November 10, 2004, we had signed leases for 53 stores averaging approximately 49,000 square feet in size, which is approximately 55% larger than our existing store base average. Square footage under development at November 10, 2004 was approximately 2.6 million, equal to approximately 50% of our existing store base.

 

This excerpt taken from the WFMI 10-K filed Dec 10, 2004.

Growth Strategy

 

Whole Foods Market’s growth strategy is to expand through a combination of new store openings and acquisitions of existing stores. We have a disciplined, opportunistic real estate and acquisition strategy, opening or acquiring stores in existing trade areas as well as new markets. Our new stores typically range between 40,000 to 60,000 square feet and are located on premium real estate sites. We have also grown through acquisitions, with approximately 33% of our store base consisting of acquired stores. Because the natural foods retailing industry is highly fragmented and comprised of many smaller local and regional chains, we may continue to pursue acquisitions of smaller chains that provide access to desirable markets, locations and experienced team members. Such acquisitions, however, are expected to have less of an impact on our future store growth and financial results than they have had in the past primarily due to the growing base size of the Company.

 

5


Table of Contents

We typically relocate a small number of our stores each fiscal year to larger locations with improved visibility and parking. For stores relocated in fiscal years 1999 through 2004, the overall average increase in size was approximately 95%. Our historical store growth is summarized below:

 

     2004

    2003

    2002

    2001

    2000

 

Stores at beginning of fiscal year

   145     135     126     117     100  

Stores opened

   12     12     11     12     17  

Acquired stores

   7     —       3     —       3  

Relocations and closures

   (1 )   (2 )   (5 )   (3 )   (3 )
    

 

 

 

 

Stores at end of fiscal year

   163     145     135     126     117  
    

 

 

 

 

Total square footage at end of fiscal year (in thousands)

   5,145     4,545     4,098     3,598     3,180  
    

 

 

 

 

 

As of November 10, 2004, we had signed leases for 53 stores averaging approximately 49,000 square feet in size, which is approximately 55% larger than our existing store base average. Square footage under development at November 10, 2004 was approximately 2.6 million, equal to approximately 50% of our existing store base.

 

This excerpt taken from the WFMI 10-K filed Dec 23, 2003.

Growth Strategy

 

Whole Foods Market’s growth strategy is to expand through a combination of new store openings and acquisitions of existing stores. We have a disciplined, opportunistic real estate and acquisition strategy, opening or acquiring stores in existing trade areas as well as new markets. Our new stores typically range between 35,000 to 55,000 square feet and are located on premium real estate sites. We have also grown through acquisitions, with approximately 32% of our store base consisting of acquired stores. As the natural foods retailing industry is highly fragmented and comprised of many smaller local and regional chains, we may continue to pursue acquisitions of smaller chains that provide access to desirable locations and markets, as well as experienced team members. Such acquisitions, however, are expected to have less of an impact on our future store growth and financial results than they have had in the past primarily due to the growing base size of the Company. We typically relocate a small number of our stores each year to larger locations with improved visibility and parking. For stores relocated in fiscal years 1999 through 2003, the overall average increase in size was approximately 85%. Our historical store growth is summarized below:

 

     Fiscal Year

 
     2003

    2002

    2001

    2000

    1999

 

Stores at beginning of year

   135     126     117     100     87  

Stores opened

   12     11     12     17     9  

Acquired stores

   —       3     —       3     5  

Relocations and closures

   (2 )   (5 )   (3 )   (3 )   (1 )
    

 

 

 

 

Stores at end of year

   145     135     126     117     100  
    

 

 

 

 

Total square footage at end of year (in thousands)

   4,545     4,098     3,598     3,180     2,584  
    

 

 

 

 

 

As of November 30, 2003, we had signed leases for 35 stores averaging approximately 45,000 square feet in size, which is 43% larger than our existing store base. Square footage under development was a record 1.6 million, equal to approximately 35% of our existing store base.

 

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