An interesting story in the Houston Chronicle says that Austin-based Whole Foods Market will be opening a spanking new store smack-dab in the middle of London this coming June. Does anybody out there doubt that Whole Foods CEO John Mackey has any plans for global expansion yet?
With the Continent a Chunnel ride away, it's likely Mr. Mackey has his eyes set on Western Europe as I write this. Mind you: the new London store promises to open with a big splash. We're talking an 80,000-square-foot plant here, which will make WF one of the largest supermarkets in London.
While the more reserved British don't necessarily buy into the "bigger is better retail philosophy," as the article states, there is no doubt that interest and sales in natural and organic food are growing on the other side of The Pond, as well. In fact, British supermarket chains have increasingly offered these products to consumers, just as American supermarkets have done. There is great potential for better and larger natural and organic assortments at retail, given the explosive growth of these categories, which has continued unabated over the past few years.
Given the interest in organic foods in England, which begins with Prince Charles himself, Whole Foods stands to benefit. HRH is an avid organic gardener and has publicly supported natural farming in his country as well as a ban on GMOs (refers to genetically modified foods). In fact, Whole Foods plans to carry the Prince's own "Duchy Originals" organics within the London store. Whole Foods' M.O. will also be to support the local organic growers and producers of packaged organic foods in England, giving them additional distribution for their products, importing additional products to flesh out categories in the process. Buying locally for local distribution is a wise idea.
Whole Foods is no stranger to the London market. In 2004, the grocer purchased Fresh & Wild, a small chain of seven organic produce stores. And the company has taken its time to study the English market, eyeing additional cities for future expansion in the country. Staff is already being hired, and a number of them have been flown to the U.S. to train in Whole Foods stores here. What better way to get to know the brand, and the level of customer service that is expected? Ultimately the new London store is expected to employ 550 people. The store's assortments will include produce, perishables, frozen food, groceries, vitamins, beauty products and homeopathic remedies–long a mainstay of British medicine.
As an upscale store, Whole Foods expects to butt heads with the likes of Harrod's and Fortnum & Mason, heralded for their gourmet food assortments with Londoners for generations. Not to mention supermarkets like Sainsbury's and Tesco. Whole Foods VP David Doctorow: "We want everybody to be wowed at the start. It will be unlike any food shopping experience the U.K. consumer has seen to date."
Questions:
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Do you think that the Whole Foods brand can be kept intact as it crosses the Atlantic?
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Do you think the British employees will get the internal branding they need to faithfully represent the brand so far from its American home base?
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Do you think the British consumers will readily embrace Whole Foods, or do you think it will take some time to take root in that marketplace?
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What are your other thoughts concerning Whole Foods' expansion plans? I'd like to hear the thoughts of Daily Fix readers.
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