Whole Foods idea lacked'research'€¦ · Whole Foods remains commit-ted to expanding in Canada,...
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TUESDAY, JANUARY 10,2017 EDMONTON JOURNAL A7 Whole Foods idea lacked'research' WHOLE FOODS FROM .iTI She never believed the province had enough local suppliers to sup- port Whole Foods. "Edmonton is a small city, and our organic stores have been suf- fering for years," she said. "I feel this is atarget casefor'Hey, maybe you should do your research.' " Whole Foods, a natural and or- ganic grocery chain based in Aus- tin, Texas, confirmed in an email Monday it isn't going ahead with the two Alberta locations, although the email didn't saywhy. The company announced in September 2015 it would open a 3,9O0-square-metre store at South Park Centre, 38O3 Calgary Trail South, in a former Canadian Tire location that it heavily remodelled. That store was set to start wel- coming shoppers last fall. Whole Foods remains commit- ted to expanding in Canada, with two stores in Toronto and North Vancouver slated to open this year, the email said. Kevin Grier, a retail analystbased in Guelph, Ont., said the poor Al- berta economylikelyplayed a role in Whole Foods' decision. "Anupscale store like that needs a critical mass of affiuent, confident shoppers and the fact they are can- celling or postponing stores tells me it's indicative of the market there." He added Canadians' love of grocery flyers and bargains - and the fact Statistics Canada reported average groceryprices fell in2Ol6 - would also discourage the Amer- ican company. But Deveaux doesn't think the econ6my was a big factor in keep- ing the company away, saying Al- berta remains a Canadian retail hot spot. Superstore and other big super- markets have increased their or- ganic offerings in Edmonton while smaller specialty outlets such as the downtown Earth's General Store are struggling, she said. "There really isn't anything you need from Whole Foods you can't get from the other three or four I suppliers," she said. I I I This building at 3803 Calgary Trail was the proposed site for Whole Foods, but the U.S. natural and organic grocery chain confirmed Monday that it isn't going ahead with this store and anotherin GulgtII.:l{I4{ woNG/FrLEs "You have this strange situation of another American retailer who thinks they can come in on name alone." She wouldn't be surprised if a different grocery chain takes over the emptyWhole Foods space, pos- sibly helping create a specialty food cluster in the area. TWo years agq Whole Foods CEO John Mackey said the chain would An up sc ale store tike that needs a critical moss of affluent, c onfident shopp er s and the facttheg are cancelling or p o stp oning stor e s tells me it's , indicatiue of the morket there. eventually grow to 4O Canadian lo- cations, without giving a sPecific timeline. It has 12 Canadian stores, along with 246 in the United States and nine in the United Kingdom. With file s from The Canadi an Pres s [email protected] twitter.com/GKenlEJ Whole Foods stores nixed in Edmonton and Calgary GORDON KENT The decisionbyWhole Foods Mar- ket to cancel Planned Edmonton and Calgary stores shows the U.S' company didn't do its homework, a University of Alberta retail ana- lyst says. "Theycame in and Ithink they quickly realized that PeoPle who sell at farmers'markets can't necessarily sell at commercial lo- cations,' Emily Deveaux, executive director ofthe U ofAs school of retailing, said MondaY. She said it can take two Years to ensure food and containers sold at big outlets meet shelf life and quality standards. It would be ex- pensive to imPort Products from lhe United States, especiallY with the low Canadian dollar, she said. SEE WHOLE FOODS ON A7
Transcript of Whole Foods idea lacked'research'€¦ · Whole Foods remains commit-ted to expanding in Canada,...
TUESDAY, JANUARY 10,2017 EDMONTON JOURNAL A7
Whole Foods idea lacked'research'WHOLE FOODS FROM .iTI
She never believed the provincehad enough local suppliers to sup-port Whole Foods.
"Edmonton is a small city, andour organic stores have been suf-fering for years," she said. "I feelthis is atarget casefor'Hey, maybeyou should do your research.' "
Whole Foods, a natural and or-ganic grocery chain based in Aus-tin, Texas, confirmed in an emailMonday it isn't going ahead withthe two Alberta locations, althoughthe email didn't saywhy.
The company announced inSeptember 2015 it would open a3,9O0-square-metre store at SouthPark Centre, 38O3 Calgary TrailSouth, in a former Canadian Tirelocation that it heavily remodelled.
That store was set to start wel-coming shoppers last fall.
Whole Foods remains commit-ted to expanding in Canada, withtwo stores in Toronto and NorthVancouver slated to open this year,the email said.
Kevin Grier, a retail analystbasedin Guelph, Ont., said the poor Al-berta economylikelyplayed a rolein Whole Foods' decision.
"Anupscale store like that needsa critical mass of affiuent, confidentshoppers and the fact they are can-celling or postponing stores tellsme it's indicative of the marketthere."
He added Canadians' love ofgrocery flyers and bargains - andthe fact Statistics Canada reportedaverage groceryprices fell in2Ol6
- would also discourage the Amer-ican company.
But Deveaux doesn't think theecon6my was a big factor in keep-ing the company away, saying Al-berta remains a Canadian retailhot spot.
Superstore and other big super-markets have increased their or-ganic offerings in Edmonton whilesmaller specialty outlets such as
the downtown Earth's GeneralStore are struggling, she said.
"There really isn't anything youneed from Whole Foods you can'tget from the other three or four
I suppliers," she said.
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This building at 3803 Calgary Trail was the proposed site for Whole Foods, but the U.S. natural and organic grocery
chain confirmed Monday that it isn't going ahead with this store and anotherin GulgtII.:l{I4{ woNG/FrLEs
"You have this strange situationof another American retailer whothinks they can come in on namealone."
She wouldn't be surprised if a
different grocery chain takes overthe emptyWhole Foods space, pos-sibly helping create a specialty foodcluster in the area.
TWo years agq Whole Foods CEOJohn Mackey said the chain would
An up sc ale store tike that needsa critical moss of affluent,c onfident shopp er s and thefacttheg are cancelling orp o stp oning stor e s tells me it's
, indicatiue of the morket there.
eventually grow to 4O Canadian lo-cations, without giving a sPecifictimeline.
It has 12 Canadian stores, alongwith 246 in the United States andnine in the United Kingdom.With file s from The Canadi an Pres s
[email protected]/GKenlEJ
Whole Foodsstores nixedin Edmontonand Calgary
GORDON KENT
The decisionbyWhole Foods Mar-ket to cancel Planned Edmontonand Calgary stores shows the U.S'
company didn't do its homework,a University of Alberta retail ana-lyst says. "Theycame in and Ithinkthey quickly realized that PeoPlewho sell at farmers'markets can'tnecessarily sell at commercial lo-cations,' Emily Deveaux, executivedirector ofthe U ofAs school ofretailing, said MondaY.
She said it can take two Years toensure food and containers soldat big outlets meet shelf life andquality standards. It would be ex-
pensive to imPort Products fromlhe United States, especiallY withthe low Canadian dollar, she said.
SEE WHOLE FOODS ON A7
