Whole Foods 2007 Annual Report Download - page 9

3
This Report on Form 10-K contains forward-looking statements within the meaning of Section 21E of the Securities and
Exchange Act of 1934 concerning our current expectations, assumptions, estimates and projections about the future. These
forward-looking statements are based on currently available operating, financial and competitive information and are subject
to risks and uncertainties that could cause our actual results to differ materially from those indicated in the forward-looking
statements. See “Item 1A. Risk Factors” for a discussion of risks and uncertainties that may affect our business.
PART I
Item 1. Business.
General
Whole Foods Market is the world’s leading natural and organic foods supermarket and America’s first national “Certified
Organic” grocer. Our Company mission is to promote the vitality and well-being of all individuals by supplying the highest
quality, most wholesome foods available. Since the purity of our food and the health of our bodies are directly related to the
purity and health of our environment, our core mission is devoted to the promotion of organically grown foods, food safety
concerns, and the sustainability of our entire ecosystem. Through our growth, we have had a large and positive impact on the
natural and organic foods movement throughout the United States, helping lead the industry to nationwide acceptance over
the last 27 years.
Whole Foods Market, Inc. is a Texas corporation incorporated in 1980. The Company is based in Austin, Texas and conducts
business through various wholly owned subsidiaries. Unless otherwise specified, references to Whole Foods Market or the
Company in this Report include its consolidated subsidiaries. We operate in one reportable segment, natural and organic
foods supermarkets.
We opened our first store in Austin, Texas in 1980 and completed our initial public offering in January 1992. As of
September 30, 2007, we operated 276 stores organized into 11 geographic operating regions, each with its own leadership
team: 263 stores in 37 U.S. states and the District of Columbia; seven stores in Canada; and six stores in the United
Kingdom. This includes 74 stores (net of divested locations) acquired from Wild Oats Markets, Inc. (“Wild Oats”) on August
28, 2007: 70 stores in 22 U.S. states and four stores in Canada. Unless otherwise noted, all information in Part I of this Form
10-K is adjusted to include this acquisition.
Our sales have grown rapidly through new store openings, acquisitions and comparable store sales growth, from
approximately $92 million in fiscal year 1991, excluding the effect of pooling-of-interests transactions completed since 1991,
to approximately $6.6 billion in fiscal year 2007, a compounded annual growth rate of approximately 30%. We are a Fortune
500 company, ranking number 411 based on our fiscal year 2006 sales of approximately $5.6 billion. Our 276 stores average
approximately 34,000 square feet in size, approximately $32 million in annual sales, and are approximately 8.2 years old.
Excluding Wild Oats, our stores average 37,000 square feet in size, approximately $33 million in annual sales, and are
approximately 7.9 years old. Our stores are supported by 11 regional offices and our Austin headquarters, regional
distribution centers, bakehouse facilities, commissary kitchens, seafood-processing facilities, produce procurement centers, a
national meat purchasing office, a confectionary, and a specialty coffee, tea procurement and brewing operation.
We aspire to become an international brand synonymous with not just natural and organic foods, but also with being the best
food retailer in every community in which we are located. We believe our heavy emphasis on perishable products is helping
us reach that goal, differentiating our stores from conventional supermarkets and enabling us to attract a broader customer
base. Perishable product sales accounted for approximately 67% of our total retail sales at Whole Foods Market locations in
fiscal year 2007. We believe that all shoppers, not just natural and organic food shoppers, appreciate great produce, dairy,
meat, seafood, bakery and prepared foods, and it is our strength of execution in perishables along with our unparalleled
customer service that has attracted many of our most loyal customers.