Whole Foods 2009 Annual Report Download - page 23

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17
John Mackey, co-founder of the Company, has served as Chairman of the Board and Chief Executive Officer since 1980.
A.C. Gallo has served as Co-President of the Company since September 2004 and as Co-Chief Operating Officer since
December 2003. Mr. Gallo has held various positions with the Company and with Bread & Circus, Inc., which was acquired
by the Company in October 1992, including Vice President and President of the North Atlantic Region, and Executive Vice
President of Operations.
Walter Robb has served as Co-President of the Company since September 2004 and as Co-Chief Operating Officer since
December 2003. Since joining the Company in 1991, Mr. Robb has also served as Store Team Leader, President of the
Northern Pacific Region, and Executive Vice President of Operations.
Glenda Chamberlain has served as Executive Vice President and Chief Financial Officer of the Company since December
1988.
James P. Sud has served as Executive Vice President of Growth and Business Development since February 2001. Mr. Sud
joined the Company in May 1997 and served as Vice President and Chief Operating Officer until February 2001. Mr. Sud
served as a director of the Company from 1980 to 1997.
Item 1A. Risk Factors.
We wish to caution you that there are risks and uncertainties that could cause our actual results to be materially different
from those indicated by forward-looking statements that we make from time to time in filings with the SEC, news releases,
reports, proxy statements, registration statements and other written communications, as well as oral forward-looking
statements made from time to time by representatives of the Company. These risks and uncertainties include the risk factors
described below. The cautionary statements below discuss important factors that could cause our business, financial
condition, operating results and cash flows to be materially adversely affected. The Company does not undertake any
obligation to update forward-looking statements.
Economic Conditions that Impact Consumer Spending Could Materially Impact Our Business
The global economic crisis adversely impacted our business and financial results in fiscal year 2009 and the ongoing
economic uncertainty continues to negatively affect consumer confidence and discretionary spending. Our results of
operations may be materially impacted by changes in overall economic conditions that impact consumer confidence and
spending, including discretionary spending. There can be no assurance that various governmental activities to stabilize the
markets and stimulate the economy will restore consumer confidence or change spending habits. Future economic conditions
affecting disposable consumer income such as employment levels, business conditions, changes in housing market
conditions, the availability of credit, interest rates, tax rates, fuel and energy costs, the impact of natural disasters or acts of
terrorism, and other matters could reduce consumer spending or cause consumers to shift their spending to lower-priced
competitors.
Our Growth Depends on New Store Openings
Our continued growth depends to some degree on our ability to open new stores in existing and new areas and to operate
those stores successfully. Successful implementation of this strategy is dependent on finding suitable locations, and we face
intense competition from other retailers for such sites. There can be no assurance that we will continue to grow through new
store openings. We may not be able to timely open new stores or operate them successfully. Also, we may not be able to
successfully hire and train new team members or integrate those team members into the programs and policies of the
Company. We may not be able to adapt our distribution, management information and other operating systems to adequately
supply products to new stores at competitive prices so that we can operate the stores in a successful and profitable manner.
New Stores May Negatively Impact Our Results
There can be no assurance that our new store openings will be successful or result in greater sales and profitability for the
Company. New stores build their sales volumes and refine their merchandise selection over time and, as a result, generally
have lower gross margins and higher operating expenses as a percentage of sales than our more mature stores. There may be
a negative impact on our results from a lower contribution of new stores, along with the impact of related pre-opening and
relocation costs.
Increased Competition May Have an Adverse Effect on Profitability
Our competitors include but are not limited to local, regional, national and international supermarkets, natural food stores,
warehouse membership clubs, small specialty stores and restaurants. Their businesses compete with us for products,
customers and locations. In addition, some are expanding more aggressively in marketing a range of natural and organic