Find Your Valentine
Slog
News & ArtsTuesday, December 9, 2008
City Whole Foods Warns of Layoffs and Smaller Stores
Posted by Dominic Holden on Tue, Dec 9, 2008 at 4:11 PM
Blaming a tough economy, Whole Foods executives sent an ominous letter to all employees in its Pacific Northwest stores last month that warns of potential layoffs, announces a hiring freeze, and says new stores are on hold.
“Many teams are clearly overstaffed for their current sales and are at the point where labor needs to be reduced…” the memo says. It adds that as “sales soften,” the company has accumulated $59,000 in labor deficits. “Team sales and labor will be reviewed in January and tough decisions may be made if we are unable to achieve sales to labor balance by that time.” The memo says no layoffs will occur before January.
According to several sources, the largest local Whole Foods store at 56,000 square feet, located in Bellevue, has been lacking for sufficient business. Meanwhile, as Jonah reported, the company delayed plans for a store in Interbay and announced plans to downsize it.
In fact, the Texas-based chain plans to only build smaller stores from now on.
“We are looking at sites that are under 40,000 square feet as a format for our stores as we go forward,” says Vicki Foley, a Whole Foods regional spokeswoman. “That is not just our region—that’s for the whole county.” While 40,000 square feet is still large, it marks a departure from competing with the Safeway and QFC mega-markets.
But the size of the stores may be a secondary explanation for the slump in sales in poor times. Whole Foods is notoriously expensive, earning the nickname “Whole Paycheck.”
“Obviously, we don’t like the name Whole Paycheck,” says Foley, “because we comparative shop with other stores in the area, checking to make sure we are not more expensive than anybody else.”
Meanwhile, Trader Joe’s, which only operates smaller stores and sells generic nonperishable items at low prices, seems to be holding strong. An employee at the Capitol Hill store said there are no concerns about layoffs or a slump in business there. Nobody from the Trader Joe’s national office has returned calls to comment.
1
sure, not more expensive maybe compared to PCC or Metropolitan here in western washington, or Andronico's in NoCal, but certainly more expensive than a "regular" store.
2
What is a "labor deficit"?
How much money is their Knightsbridge store in London losing per second?
How much money is their Knightsbridge store in London losing per second?
4
The answer to my second question: 58 cents a second. They lost $18.4 million on that one store in their first year. Ouch.
6
I hope the Roosevelt one stays open and doesn't change. Since Larry's went out of business Whole Foods is the best place to find the best ingredients in one place. Sure I could go to various shops in Pike Place Market to get what I need, but I'd rather pay once.
7
Ho' Foods stocks items that can't really be comparison-shopped with other super markets or grocers. For instance, I have never seen any $49-per-pound steaks in the meat deli at Ralphs or Vons/Safeway.
@3 - do people seem to have a more intimate knowledge about the smells and tastes of ass these days or am I just behind the times?
@3 - do people seem to have a more intimate knowledge about the smells and tastes of ass these days or am I just behind the times?
9
Their business model seems like another one of those that was predicated on limitless growth in consumer spending, with no Plan B. Lots of those going down in flames. Oopsie.
10
My Husband works for Whole Foods, the have great company benefits, I would rather see them reduce hours than to Lay Off Employees. Times are tough, yes their cakes are dry but don't buy them if you don't like them simply said.
11
Ok, so "whole foods"...what started out as cheap healthy food for hippies became a charcuterie for upper income bobbed hair blond housewives. Now Daddy didn't get a bonus from the office at Two Union and that Top Food broccoli is lookin' just as good.
So, obviously the "health" aspect was all a ruse. Really you can get the best bargains (when in season) at Carpinto Bros market in Kent right on Central Ave off the 84st exit from 169. Right now they are selling Christmas trees instead of tomatoes, but over the summer I bought some mean beefsteak tomatoes...
Ok, so "whole foods"...what started out as cheap healthy food for hippies became a charcuterie for upper income bobbed hair blond housewives. Now Daddy didn't get a bonus from the office at Two Union and that Top Food broccoli is lookin' just as good.
So, obviously the "health" aspect was all a ruse. Really you can get the best bargains (when in season) at Carpinto Bros market in Kent right on Central Ave off the 84st exit from 169. Right now they are selling Christmas trees instead of tomatoes, but over the summer I bought some mean beefsteak tomatoes...
12
Don't feel too bad for Whole Foods - they've being rather ruthless with the competition. Here are a few excerpts from their internal emails, compiled by the Federal Trade Commission - these stem from Whole Foods attempt at a "merger" with Wild Oats:
“Wild Oats needs to be removed from the playing field...”
“…[m]y goal is simple – I want to crush them and am willing to spend a lot of money in the process.”
“...elimination of a competitor in the marketplace, competition for sites, competition for acquisitions, and operational economies of scale. We become the Microsoft of the natural foods industry.”
Also, New Seasons Market (based in Portland) has been dragged into the mess. Whole Foods has subpoenaed New Seasons for their financial records, details of their strategic plans, their marketing plans, and their studies regarding the opening new stores.
On the face of it, it seems entirely unreasonable of Whole Foods to play bully - they have little to gain, and New Market has much to lose.
http://newseasonsmarket.blogspot.com/200…
Local markets beware - if it can happen in Portland, it could happen here.
“Wild Oats needs to be removed from the playing field...”
“…[m]y goal is simple – I want to crush them and am willing to spend a lot of money in the process.”
“...elimination of a competitor in the marketplace, competition for sites, competition for acquisitions, and operational economies of scale. We become the Microsoft of the natural foods industry.”
Also, New Seasons Market (based in Portland) has been dragged into the mess. Whole Foods has subpoenaed New Seasons for their financial records, details of their strategic plans, their marketing plans, and their studies regarding the opening new stores.
On the face of it, it seems entirely unreasonable of Whole Foods to play bully - they have little to gain, and New Market has much to lose.
http://newseasonsmarket.blogspot.com/200…
Local markets beware - if it can happen in Portland, it could happen here.
13
Whoops - looks like the fine Ms. Barnett is already on top of the New Market saga. Apologies for the redundancy!
14
I'm with #11; it's a yuppie/trust fund baby store, and these days even the upwardly mobile are having to budget. Yeah, their products may have social conscience, but so do I, and I can't in good conscience pay those outrageous prices. And they comparison shop to make sure they're competitive? Yeah, they compare to QFC and other chains that have a high markup. In fact, I've stopped regularly shopping at supermarkets. They have redesigned themselves as mostly upscale eating centres (the newer QFC on 5th and Mercer has standing rib roast in their deli), and we have to pay for all the redecoration. No, thanks. No apple is worth $3. Sorry. Sorry about the layoffs, too.
15
@5 - I wish the ingredient list included some intestinal bacteria that would help me digest them.
16
I'm amused that they acknowledge the popular nickname, "Whole Paycheck."
Maybe if they'd yank out the acres of hot food islands and install a section of "conventional/non-organic foods" section a la Safeway's obligatory "organics" selections, they could cut some costs.
Maybe if they'd yank out the acres of hot food islands and install a section of "conventional/non-organic foods" section a la Safeway's obligatory "organics" selections, they could cut some costs.
17
@11: and if you don't want to drive to Carpenito Bros (which I love!) there's MacPherson's on 15th Ave S on Beacon Hill- better produce and cheaper.
I wish I had the balls that guy from Whole Foods has to be able to lie so baldly. I've priced items I regularly get at Trader Joe's that are available at Whole Foods (one specifically being the fizzy water in the blue plastic bottles) and while Trader Joe's has it for $.89, Whole Foods had it for $1.39. Whole Foods has its place-- they're always first to get Honeycrisps, their cheese selection is phenomenal-- but it's a hell of a lot easier and cheaper to go to Trader Joe's.
I wish I had the balls that guy from Whole Foods has to be able to lie so baldly. I've priced items I regularly get at Trader Joe's that are available at Whole Foods (one specifically being the fizzy water in the blue plastic bottles) and while Trader Joe's has it for $.89, Whole Foods had it for $1.39. Whole Foods has its place-- they're always first to get Honeycrisps, their cheese selection is phenomenal-- but it's a hell of a lot easier and cheaper to go to Trader Joe's.
18
They're still cheaper than the bodega down the street from me, where most of the poor folk have to shop.
19
I like shopping at places that are denounced as too yuppie or too hipster or too whatever by net.kooks in the comments. Whatever else the store has or doesn't have, at least it's got fewer kooks.
20
Despite its hefty prices, Whole Foods is non-union. (So is Trader Joes, but its prices are more reasonable.) Do any of those premium organic prices at Whole Foods trickle down to store staff as notably better wages and benefits? My guess is no.
21
When times are good for companies, they'll do whatever it takes to stay non-union by matching benefits with union shops. Now that times are getting bad, I'm sure a lot of Whole Foods workers are going to get laid off with little notice. Does anyone know how it would work if it was a union store?
This is one of the best examples of Whole Food's philosophy (From a 2006 Austin Chronicle article):
This is one of the best examples of Whole Food's philosophy (From a 2006 Austin Chronicle article):
But despite the company's declared commitments to animals, people, and the planet, Mackey [WF CEO] is vociferously anti-union, having notoriously compared tolerating labor unions to having herpes: "It doesn't kill you, but it's unpleasant and inconvenient and it stops a lot of people from becoming your lover."
25
What????!!!! No more WHOLE PAYCHECK!!!!???? Well I'll be fucked! I WANT MY WHOLE PAYCHECK STOLEN AT THE NEW INTERBAY STORE NOW!!!!!! Where is my fucking new WHOLE PAYCHECK store!!!?????? Where IS IT????!!!! They promised it!!!!! WHOLE PAYCHECK was supposed to go in there along with the new WORKFARCE HOUSING!!!!! Why do the signs on the empty WHOLE PAYCHECK in Interbay now say, "For Lease??????!!!!!!"
26
Thanks They Paved Hell and Put Up A Mall -- Much Nicer Now for your astute comments, but wouldn't that be "upper income bobbed hair blondE (with an "e") housewives???" Seriously, every WHOLE PAYCHECK in the US would be instantly driven out of business if a Winco rose up across the street in the same fashion that Tullys' entire business plan equals building a Tullys' across the street from every Starbucks. If Winco moved into the brand new (but curiously empty) WHOLE PAYCHECK building in Interbay, traffic on 15th Avenue would be completely FROZEN with shoppers trying to jam in there and buy food for roughly half what it costs at QFC, Safeway, Albertsons and all the so-called fill-in-the-blank "Markets." Whenever I find myself in south King County, I load up my ENTIRE CAR with cheap but perfectly yummy food from the Wincos in Kent and Federal Way. If I happen to be visiting Portland, I make a point of stopping at the Winco on the northern edge of Vancouver right next to I-5. ea. If Winco built just one store within the Seattle city limits it could put all the competition instantly out of business. Wherefore art thou Winco?????
27
eh, they might be Whole Paycheck if you get all your food there. But not all of their items are higher priced than elsewhere. For example, Tings (a great snack) are about $2.29 at the Roosevelt WF. Head over to the U Village QFC and you'll find Tings for $3.59 or so. If you want to talk about high food prices, just list out the "deals" at the UV QFC.
29
I've been buying groceries strictly at Costco and Trader Joes for years now. On the rare occasions that I run into something like QFC, I go into shock seeing prices on items which are practically double that of TJs. I feel so sorry for people with limited income who don't "get" it. Now the yuppie godesses tooling around the Whole Foods parking lot in their SUVs, umm, "sorry" I guess also describes them, but with an entirely different meaning...
30
I have mixed feelings about whole foods. one the one hand they seem to empoly some really great people at the seattle stores I've been in. On the other they seem to be totally devoted to ripping off the image of organic food coops without any of the substance or primciples. Their organic produce is hit or miss: like one item will be organic and the one next to it won't be and so on. I think they tend to have just enough organic produce to make you think it's all organic but its not. Same with other products on the shelves. It mostly strikes me that to them organic is just a marketing hype that they want to cash in on without having to actually provide it. This business with how they're messing with New Seasons is very disturbing and enough to put whole foods on my "do not shop" list. For your money I'd say shop at PCC - while they are a coop in name only, they do seem to have a consistent commitment to organic produce and local farms. Or better yet shop at what may be the only real organic coop in seattle city limits: Madison Market.
31
I for one hope those anti-union fuckers go belly up. I buy my produce at union stores, farmer's markets, and at MacPherson's, when I'm in the neighborhood. Next year I'll be growing as much of my own as I can.
32
Maybe if they lowered their goddamned prices, more people would shop there. They don't call it "Whole Paycheck" for nothin'
33
I would encourage all of you leaving comments to inquire about what Whole Foods has done for the Organic industry , animal compassion , fair trade , fair wages and living conditions for farm workers . Every time you buy something cheap some one is getting screwed along the way ... it might not be you but it will be the under paid team member , the poorly treated farmer or our enviroment with all the poor practices producers use these days ....Knowledge is power . Be informed before you type !
34
I agree with you #33.
Think before you consume mindlessly. You'll consume yourself away.
Must look at the bigger picture not live just for today.
Think before you consume mindlessly. You'll consume yourself away.
Must look at the bigger picture not live just for today.
35
regardless of whether or not you choose to shop there. These are people that potentially face loosing their jobs during what is considered an extremely scary economic times. We would be better suited investing our energies in fixing the economy and supporting our communities than spending hours chatting on the internet about how much this or that sucks. Whole foods supports communities; just inquire about their 5 % days or the fact that they donate food to local organizations daily. They provide higher wages than any other grocery store out there, as well as full medical benefits. I would encourage those of you that shoot your mouths off about one of the few good companies out there, just walk into one of the stores and talk to the people that work there, but you probably wouldn't because that would require you getting of your butt and actually doing something!!!!
36
#35 I totally agree when was the last time out side of a farmers market that you had a chance to sit and talk with the actual farmer I have been in a couple Whole Foods and met the people actually growing the product that is sold on thier shelves I asked one what is was like to deal with Whole Foods and kind of joked you can tell me be honest He smiled and said by far was the best company to work with out there, he said that they get a very fair dollar for their product and that Whole Foods and that he would be happy if Whole Foods was the only company he ever dealt with for the many years to come he said that they really look at the bigger picture than just how cheap they can get the product, but how can they have a decient price and partner with the grower to keep him in bussiness, some where that I can get behind and shop at like, you don't have to take my word for it, but here they are like #33 said be informed before you type.
37
Do that.
Walk into any Whole Foods and ask any TM if they can afford to shop where they work, whether or not they are happy with or merely clinging to their positions, how many people they have worked with have been recently laid off, and you will be met with a smile... They are legally bound to say nothing.
But if you know someone who works there, ply them outside of work and see what they REALLY know/think.
Give the inside conversation a shot!
Walk into any Whole Foods and ask any TM if they can afford to shop where they work, whether or not they are happy with or merely clinging to their positions, how many people they have worked with have been recently laid off, and you will be met with a smile... They are legally bound to say nothing.
But if you know someone who works there, ply them outside of work and see what they REALLY know/think.
Give the inside conversation a shot!
38
If Whole Foods goes down more people are without jobs. Come on folks, these are people lively hoods. Have a heart, if you don't like the prices don't shop there but please don't wish for for the company to go belly up. It is a heartless thing to say. Karma is a bitch!!!!
39
So long as the London store continues to price its goods above HARRODS Beef and fish at $50.00 a kilo against Harrods $26.00)then there is only one outcome !. The Store has $750,000 a week break even figure and probably does not sell more than a fraction of that. They lost $20MM last year and are on schedule to do the same this year.The pile it high sell it DEAR !! syndrom is the problem for them! They have 56 till points and only 10-15 are ever open.Huge Management cock up in buying a s6tore in Kensington when everyone else was moving to Westfields!
Advertisement
Most Commented on Slog
-
Liveblogging the Washington State House Debate and Vote
onIN FAVOR OF GAY MARRIAGE by Eli Sanders -
SL Letter of the Day: Life Sentence by Dan Savage
-
Required Listening: Howard Stern on Ellen, JC Penney, Bullied Gay Kids, Rosie, Santorum, Bachmann, et al by Dan Savage
-
Jeff Bezos' Racist, Pro-Life, Anti-Evolution, Rape-Apologist Search Engine by Goldy
-
SL Letter of the Day: Daddy Loves Who? by Dan Savage
-
Crowdsourcing Uncut Police Video from the Dec. 12 Occupy Protest at the Port of Seattle by Eli Sanders
-
State Legislator Testifies That His Opposition to Same-Sex Marriage Came to Him from a Commercial for Jack in the Box by Christopher Frizzelle
-
"Let me be the first one to say: My business will refuse to participate in a same-sex marriage ceremony," by Republican Representative Matt Shea of the Spokane Valley by Eli Sanders
-
"I don't know if I want to be here [if gay marriage passes]," by Republican State Senator Jay Rodne of North Bend by Eli Sanders
-
"The law at the time required a prosecution." by Dan Savage
RSS
Facebook
Twitter
Comments (39) RSS