Whole Foods 2010 Annual Report Download - page 9

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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. Unless otherwise specified, references to “Whole Foods Market,” “Company,” or “We” in this Report
include the Company and its consolidated, wholly owned subsidiaries. The Company was formed in 1980 and is based in
Austin, Texas. We completed our initial public offering in January 1992, and our common stock trades on the NASDAQ
Global Select Market (“NASDAQ”) under the symbol “WFMI.” 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 30 years.
We have one operating segment, natural and organic foods supermarkets. As of September 26, 2010 we operated 299 stores
in the United States, Canada, and the United Kingdom. Our stores average 37,600 square feet in size and nine years in age,
and are supported by our Austin headquarters, regional offices, distribution centers, bakehouse facilities, commissary
kitchens, seafood-processing facilities, meat and produce procurement centers, and a specialty coffee, tea procurement and
brewing operation.
The following is a summary of our annual percentage sales and net long-lived assets by geographic area:
2010 2009 2008
Sales:
United States 97.0% 97.2% 96.5%
Canada and United Kingdom 3.0% 2.8% 3.5%
Total sales 100.0% 100.0% 100.0%
Long-lived assets, net:
United States 96.6% 96.5% 96.4%
Canada and United Kingdom 3.4% 3.5% 3.6%
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 $76 billion in 2009, a 5% increase over the prior year. We believe the growth in sales of
natural and organic foods is being driven by numerous factors, including:
• heightened awareness of the role that food and nutrition play in long-term health, which has led to healthier eating
patterns;
• a better-educated and wealthier populace whose median age is increasing each year;
• increasing consumer concern over the purity and safety of food due to the presence of pesticide residues, growth
hormones, artificial ingredients and other chemicals, and genetically engineered ingredients; and
• environmental concerns due to the degradation of water and soil quality.
Our Core Values
We believe that much of our success to date is because we remain a uniquely mission-driven Company. Our core values
succinctly express the purpose of our business, which is not only to make profits but to create value for all of our major
stakeholders, each of which is linked interdependently. By maintaining our core values, regardless of how large we become,
we are able to preserve what has always been special about our Company.