Whole Foods 2009 Annual Report Download - page 10

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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 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 29 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, 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 27, 2009, we operated 284 stores: 273 stores in 38 U.S. states and the District of Columbia; six stores in Canada;
and five stores in the United Kingdom.
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 2009, a compounded annual growth rate of approximately 28%. We are a Fortune
500 company, ranking number 324 on the 2009 list. Our 284 stores average approximately 37,000 square feet in size,
approximately $29 million in annual sales, and are approximately nine years old on average. Our stores are supported by 12
regional offices and our Austin headquarters, regional distribution centers, bakehouse facilities, commissary kitchens,
seafood-processing facilities, meat and produce procurement centers, 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 perishables and locally grown
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.
The following is a summary of annual percentage sales and net long-lived assets by geographic area:
2009 2008 2007
Sales:
United States 97.2% 96.5% 97.3%
Canada and United Kingdom 2.8% 3.5% 2.7%
Total sales 100.0% 100.0% 100.0%
Long-lived assets, net:
United States 96.5% 96.4% 95.1%
Canada and United Kingdom 3.5% 3.6% 4.9%
Total long-lived assets, net 100.0% 100.0% 100.0%
The Natural and Organic Products Industry
According to a leading trade publication for the industry, sales of natural products across all retail and direct-to-consumer
channels grew to approximately $68 billion in 2008, a 10% increase over the prior year.