Whole Foods Market
Whole Foods Market, Inc., a subsidiary of Amazon, is an American multinational supermarket chain headquartered in Austin, Texas, which sells products free from hydrogenated fats and artificial colors, flavors, and preservatives.[5] A USDA Certified Organic grocer in the United States, the chain is popularly known for its organic selections.[6] As of March 4, 2019, Whole Foods has more than 500 stores in North America and seven in the United Kingdom.[3][7]
"Whole Foods" redirects here. For the type of food, see Whole food. For the food cooperative, see Whole Foods Co-op.Company type
September 20, 1978
John Mackey, Renee Hardy-Lawson, Mark Skiles, Craig Weller
500+
- United States
- Canada
- United Kingdom
- Food
- pharmacy
- flowers
- alcohol
- general merchandise
365
91,000
Amazon (2017–present)
365 by Whole Foods Market
Amazon acquired the company for $13.7 billion on August 28, 2017.[8]
History[edit]
Early years[edit]
In 1978, John Mackey and Renee Lawson borrowed $45,000 from family and friends to open a small vegetarian natural foods store called SaferWay in Austin, Texas (the name being a spoof of Safeway). When the two were evicted for storing food products in their apartment, they decided to live at the store. Because it was zoned for commercial use, there was no shower stall, so they bathed using a water hose attached to their dishwasher.[9][10][11]
Two years later, Mackey and Lawson partnered with Craig Weller and Mark Skiles to merge SaferWay with the latter's Clarksville Natural Grocery, resulting in the opening of the original Whole Foods Market, which included meat products. At 10,500 square feet (980 m2) and with a staff of 19, the store was large in comparison to the standard health food store of the time.[12]
On May 25, 1981, the most damaging flood in 70 years devastated Austin. Whole Foods' inventory was ruined, and most of the equipment was damaged. The loss was approximately $400,000, and Whole Foods Market had no insurance. Customers, neighbors, and staff assisted in repairing and cleaning up the damage. Creditors, vendors, and investors assisted in the recovery, and the store reopened 28 days later.[12]
Rating systems[edit]
Whole Foods Market has developed several in-store rating systems for various departments to allow their customers full transparency in purchasing. The Seafood department has a Sustainability Rating System for wild-caught seafood[73] while farm-raised seafood has to meet aquaculture standards[74] both rated in accordance to third-party auditors. The Meat department has a rating system in partnership with the Global Animal Partnership based on animal welfare.[75] The produce department has a rating system based on farming practices which include measures of a farm's environment, GMO transparency, worker safety, and wage practices.[76] The grocery department has an Eco-scale rating system for its cleaning products which measures their environmental impact.[77] Each system is in place to allow customers to make the most educated choices within Whole Foods Market. There are efforts to create more rating systems in other departments.[78]
GMO product labeling[edit]
Whole Foods Market has announced plans to provide its customers GMO (genetically modified organism) product labeling by 2018.[79] Efforts of GMO transparency run the gamut of each department. For years, Non-GMO Project Verified items have been sought in Grocery.[79] While efforts continue in Produce, Whole Foods recommends buying organic or referring to their "Responsibly Grown produce rating system [which] requires growers to disclose the use of GMO seeds or plant material."[79] In Seafood, plans are being made to launch a Non-GMO Project Verification process for farm-raised fish.[79] Currently, there are no USDA Organic regulations for farmed seafood.[80]
Awards and recognition[edit]
Whole Foods Market was included in Fortune magazine's annual list of the "100 Best Companies to Work For"[169] yearly from the list's inception in 1998 to being placed number 44 in 2014.[170] The chain has also won a number of awards for social responsibility including a first-place ranking by Harris Interactive / The Wall Street Journal in 2006[171] and British trade magazine The Grocer named it the "World's Greatest Food Retailer" the same year.[172][173] It has received past spots on the "100 Best Corporate Citizens" list published by Corporate Responsibility Officer.[174] In 2014, Supermarket News ranked Whole Foods number 19 on its list of "Top 75 North American Retailers."[175]
Management system[edit]
Employee structure and culture[edit]
Whole Foods Market consists of twelve geographic regions, each with its own president, regional administrative team, store-level leadership, and store-level team members. A 4-tier hierarchy of employment exists within the Whole Foods Company: Store Employment, Facilities Employment, Regional Offices, and Global Headquarters.
Employee benefits and incentives[edit]
To help employees learn about products, the company has instituted a mentoring program and developed an online portal called "Whole Foods Market University" to aid in training. Internal parlance refers to "team leaders" instead of "managers," and stores sometimes offer prizes for competing teams.[189] A 2014 analysis of 2012 figures found that Whole Foods Market was "among the least generous companies" in terms of its 401(k) savings program.[190]
Whole Foods Market has an employee discount; while all employees are provided a standard base discount rate of 20% on all store purchases, higher rates, up to 30%, can be earned based on employee physical fitness health tests that are given yearly.[191] These fitness exams are taken at the option of the employee.
Company structure[edit]
Whole Foods Market is composed of seventeen companies, each specializing in a different product. In the 1990s, while new stores were being opened, other natural food chain stores were being acquired for horizontal integration. This led to the Federal Trade Commission challenging the eventual merger with Wild Oats on the basis that it violated antitrust laws, essentially eliminating competition and inflating prices in the health foods market.[192]
Subsidiary companies and suppliers[edit]
Whole Foods Market is based on a system of decentralized buying. Each vendor is approved at the regional level for corporate standards such as being non-GMO and fair trade.[193] Individual stores then decide which approved products to stock. They have a rolling ten-year distribution arrangement with UNFI.[194]
Company type
Subsidiary
Retail groceries
June 2015
c. December 2019
Converted to Whole Foods or closed
12 (December 2018)
Whole Foods Market
