The world’s largest organics retailer, Whole Foods Market, has announced a sales increase globally amid UK financial troubles and rebranding measures.
The natural foods giant announced a one per cent sales increase for the first quarter ending January 18, with sales at $2.5 billion (£1.7bn), in line with 2008 sales excluding the sales of 13 of its Wild Oats stores.
Comparable store sales decreased four per cent compared to a 9.3 per cent increase in the previous year. Identical store sales, excluding eight relocated stores and three major expansions, decreased 4.9 per cent against a previous 7.1 per cent increase.
Whole Foods’ flagship UK store in Kensington, which is less than two years old, was to blame for half of the two per cent drop in return on invested capital in store.
John Mackey, ceo of Whole Foods, said: "The difficult strategic decisions we made last August to contain costs and cut capital spending are helping us manage successfully through this challenging economic environment.
“Despite flat sales in the first quarter, our EBITDA was approximately equal to last year; we produced strong cash flow from operations, and we generated $31.8 million (£21.7m) of positive free cash flow.
“We are demonstrating that we can operationally adjust to lower sales volumes and believe that this flexibility, combined with our improved balance sheet, will enable us to emerge stronger and better positioned over the long term."
In the UK, the retailer has started the process of rebranding its four Fresh & Wild stores into the Whole Foods Market stores.
The retailer intends to rebrand its London outlets in Soho, Stoke Newington and Camden and has already converted its Clapham store.
Reports have suggested that Whole Foods' flagship store in Kensington has struggled, with customers put off by its expensive prices and limited parking facilities since opening in June 2007.
This week, Mackey said: “Our overall operating cash flow in the UK on a currency-adjusted basis improved to negative $1.7m in the first quarter, from negative $3.3m in the first quarter last year, and we believe that dedicated and focused executive leadership will drive further improvements in our financial performance, resulting in strong returns over the long term.”
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