Whole Foods, the US-based supermarket chain specialising in organic and healthy produce, has reported a loss of €11.9m for the first year of its UK operation.
The retailer revealed that it will be reviewing its UK operations, which currently consists of six stores, as well as cutting back new openings domestically, according to The Guardian. Of the 30-40 stores originally earmarked for launch in the US this year, only 15 will now go ahead, Whole Foods said.
'We are disappointed with our results in the UK,' chief executive officer John Mackey told the UK daily. 'We are carefully evaluating all aspects of our operations in the UK.'
Analysts told the Evening Standard that the figures were both 'disappointing' and 'worrying', and warned that consumers were looking to cheaper retailers such as nearby branches of Tesco, Marks & Spencer and Waitrose.
Globally, the group's profits fell 31 per cent to €21.8m with shares falling 15 per cent, attributed to the slow economic climate with consumers moving away from highly-priced food towards discount retailers.
'Our goal is to reduce our operating losses to US$13m (€8.4m) in fiscal year 2009, US$7m (€4.5m) in 2010 and to approach break-even in 2011,' Mr Mackey said, adding that the losses were similar to when Whole Foods entered Canada. 'We believe the long-term growth potential in the UK is much greater than in Canada.'
No comments yet