US: Store opening costs weigh on Whole Foods
Whole Foods Market saw third-quarter profits dip on the back of costs linked to new store openings.
The US-based natural and organic retailer yesterday (31 July) posted a 5.5% fall in operating income to US$79.6m for the three months to 1 July. The dip in profits came despite a 13.2% leap in revenue to $1.5bn.
For the quarter, pre-opening and relocation costs were $15m, compared to $7.9m, in the third quarter last year.
"As expected, fiscal year 2007 has been an investment year as we have accelerated our new store openings while cycling over tough year-ago comparable store sales growth comparisons," said Whole Foods chairman and CEO John Mackey.
"We are very excited to see the acceleration in our new store openings materialize, as we expect these new stores to drive strong sales and comparable store sales growth in the not-so-distant future."
Lawyers for Whole Foods have spent the last two days in a US court in the latest stage of its legal battle to push through its proposed merger with rival retailer Wild Oats Markets.
The US Federal Trade Commission (FTC), which wants to block the US$565m merger in the belief the enlarged firm would erode competition in the natural and grocery sectors.
Companies: Whole Foods Market
Dutch wholesaler Sligro Food Group has admitted its "concern" over the prospects for its food retail business after a year in which its foodservice operations shone....
The torrential rain of last summer in the UK may mean the price of onions could shoot up by as much as 50% as supplies dwindle....
Swiss baker Hiestand has reported record sales growth for the full year, as the company benefited from both acquisitions and a strong organic performance....
Planet Organic, the UK organic food retailer, is to open two branches in north London's Muswell Hill and Islington neighbourhoods....
Stonyfield Farm, the largest organic yoghurt producer in the US, has relaunched its high calcium yoghurt 2-a-Day as an organic option with a new name - YoCalcium....
Mars is relaunching its organic brand Seeds of Change to "connect with a broader audience" in the UK....
Delhaize's strongest performance in the US for more than a decade drove a 5% rise in annual sales, the Belgium-based retailer said today (17 January)....
Consumers in their fifties and above are driving an emerging passion for ethical shopping in the US, a study has claimed....
- Interview: Sir Kensington's on sale to Unilever
- Analysis: Post discusses rationale for Weetabix
- Interview: "Disruptive" snack brand Hippeas
- Who will buy Danone's Stonyfield business?
- Column: Why snacking is the new meal
- Unilever buys US condiments maker Sir Kensington's
- Tyson shops Sara Lee bakery, Kettle and Van's
- Icelandic to sell Saucy Fish Co. owner Seachill
- Dairy dampens Danone in Q1
- Tyson to buy burger-to-entree firm AdvancePierre