Whole Foods 2008 Annual Report Download - page 9

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 supermarket emphasizing natural and organic foods 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 significant and
positive impact on the natural and organic foods movement throughout the United States, helping lead the industry to
nationwide acceptance over the last 28 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 have one operating segment, supermarkets emphasizing
natural and organic foods.
We opened our first store in Austin, Texas in 1980 and completed our initial public offering in January 1992. As of
September 28, 2008, we operated 275 stores: 264 stores in 38 U.S. states and the District of Columbia; six stores in Canada;
and five stores in the United Kingdom. This includes 55 stores (net of closed and divested locations) acquired from Wild
Oats Markets, Inc. (“Wild Oats”) on August 28, 2007: 52 stores in 20 U.S. states and three stores in Canada.
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 $8.0 billion in fiscal year 2008, a compounded annual growth rate of approximately 30%. We are a Fortune
500 company, ranking number 369 based on our fiscal year 2007 sales of approximately $6.6 billion. Our 275 stores average
approximately 36,000 square feet in size, approximately $30 million in annual sales, and are approximately 8.5 years old on
average. 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 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, along with
our unparalleled customer service, is helping us reach that goal, differentiating our stores from other supermarkets and
enabling us to attract a broad base of loyal customers. Perishable product sales accounted for approximately 67% of our total
sales in fiscal year 2008. The following is a summary of annual percentage revenues by product category:
2008 2007 2006
Grocery 33.2% 32.0% 31.5%
Prepared foods 19.3% 19.8% 19.6%
Other perishables 47.5% 48.3% 48.8%
Total sales 100.0% 100.0% 100.0%
Figures may not sum due to rounding.
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