Whole Foods in a Whole Lot of Trouble

Stakeholders of Whole Foods Market will undoubtedly be irritated by the company’s current state. The once innovative company which broke into the scene as an up-scale grocery store providing healthier and more expensive alternatives to competition has seen a continuing trend of unfortunate events. In the last 6 months, Whole Foods has seen their stock fall 40% partially due to the company’s sales and profits not hitting analysts forecasts. The falling stocks have come with a falling reputation leading to the nickname “Whole Paycheck”. They have seen a variety of problems such as mislabeled prepackaged food, resulting fines, lawsuits, and the infamous $6 “Asparagus Water”. The company has recently laid off 1.6% of its workforce in order to invest in technology and reduce prices. The demand for lower prices by customers is believed to have stemmed from the modern popularization of organic produce, creating greater competition. The latest Whole Foods issue was a group of customers in Houston protesting prison inmates producing certain food products. Whole Foods released a statement saying the items will be removed by April 2016. It’s clear why their stocks have been falling, and with continuous bad news for them: now is certainly not the time to be investing. I am doubtful the company will ever regain the reputation it once had and will continue to fall for some time to come. There is some hope is on the horizon with new initiatives such as rooftop farming and a more affordable store aimed at younger shoppers, but for the time being, an investment with Whole Foods is one I would definitely avoid.

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