If this move turns out to be the beginning of a trend, it could be trouble for Whole Foods Market, Inc. (NASDAQ: WFMI). Publix, the largest and fastest-growing employee-owned supermarket chain in the United States with 911 locations in the south, is opening its first GreenWise store devoted exclusively to selling organic and health foods. Publix began selling health foods under its GreenWise brand.The idea is that, by offering a wide array of private-label products, Publix will be able to compete with Whole Foods on price, which I would argue is where Whole Foods is most vulnerable.
The idea for GreenWise sounds a lot like my favorite grocery store, the privately-owned Trader Joe's chain. If Publix can come close to creating the Trader Joe's atmosphere, Whole Foods better look out.
If Publix has success, chains like Safeway, Kroger, and Albertson's could follow suit. But in the business of organic foods, ambiance is key and Publix will have to create an atmosphere very different from that of its conventional stores.
Entrepreneur's Journal: Putting together a solid sales contract
The week in preview: Earnings from Walmart, Macy's, and other retailers
Six top trades for the rest of 2009
Reader Comments (Page 1 of 1)
9-27-2007 @ 2:09AM
Mikey said...
Most people that have jumped on the organic bandwagon really have no concept of how organic farming really works....or farming at all for that matter. 1ST THE SOIL..when the chemical reaction takes place in the soil that turns manure into a usable form of nitrogen for the plant to use, the plant recognizes it as what? (the answer is not ORGANIC FERTILIZER) it reconizes it as nitrogen...the exact same kind of nitrogen that you get when the chemical reaction takes place in the soil to convert a synthetic fertilizer into nitrogen. The american people as so gullable. We farm about 1500 acres of which 500 is fruit and vegetables. So, yes I am a farmer...not a gardener. We have about 100 acres of our place in organic vegetables. The production is half what the other acres produce although we sling a lot of cow $hit on the whole farm. Thank God for the safe and sane use of pesticides that we have now. We are capable of feeding the world. If it was all organically grown, we would not stand a chance. So go to the store, save some bucks, buy the regular (non-organic) veggies and rinse them off. They will be safe to eat. If you buy the organic stuff wash the hell out of it because bug crap and worm crap is hard to wash off...Just like your car windshield after you have driven through the countryside.
9-27-2007 @ 2:09AM
LeeAnn said...
Having been a frequent visitor to Florida since 1964 and moving here in 1974, PUBLIX SUPERMARKET is truly the Rolls-Royces of them all. They pride themselves on having clean bright stores with customer service being their Number One Priority. As a loyal customer of PUBLIX, if they continue with their present philosophy with their new stores, they will certainly be a super mega threat to all others especially Whole Food Markets where their prices are super high. Of course since Mr. Jenkins (founder of PUBLIX) passed away, his son and now Grandsons sit at the helm and some of what Mr. Jenkins prided himself on has fallen on the wayside, but yet I must say that "Shopping at Publix is a Pleasure".
9-27-2007 @ 8:50AM
Meredith Geary said...
If and when Pubix goes with some organic stores do you ever think it will take the stock public? If the economy goes south people still have to eat and I will stick with the clean, customer friendly Publix anyday compared to others available. As for an organic : I am not sure I will shop there.