Whole Foods sets London debut

MMR, Sept 5, 2005

AUSTIN, Texas -- Whole Foods Market Inc. plans to open a flagship store on Kensington High Street in London in early 2007.

Whole Foods acquired Fresh & Wild, a chain of seven natural and organic food stores in the United Kingdom, in January 2004 and subsequently declared its intention of finding a site for a large-format Whole Foods unit in the London area. The flagship store will encompass about 75,000 square feet.

"We are excited to extend the Whole Foods Market mission and brand beyond the United States and Canadian borders and into Europe," says John Mackey, chairman and chief executive officer. "The U.K. is an obvious first choice due to the advanced acceptance of organic food and the lack of a language barrier. We believe this spacious urban location positions us to duplicate the tremendous success Whole Foods Market has experienced in metropolitan cities in the U.S., most notably New York City, by providing Londoners with a fresh and innovative choice in shopping for the most delicious and high-quality food."

Of its 170-plus stores, six are between 60,000 and 80,000 square feet. According to Jim Sud, executive vice president of growth and business development, the company favors the larger stores because they appeal to a broader customer base, take a longer time to reach maximum sales and are less vulnerable to competition.

"[The London store] will be our first step in expanding the Whole Foods Market brand in the U.K. and ultimately into other parts of Europe, where we believe the long-term growth potential is tremendous," he says.