It’s Not Lonely at the Top Anymore

Whole Foods Market Inc. (WFM) is a powerful player in the grocery store industry.  It has a history of aggressive growth, good management, and a reputation for being socially responsible.  These characteristics have kept the company a leader, but new competition is making the company’s battle more difficult.

Retailers like Costco (COST), Target (TGT) Kroger (KR) have been focusing on bringing attention to their organic food items.  This is a big problem for Whole Foods because, companies like Costco have a reputation for bringing savings to their consumers, while Whole Foods is known for its organic products and if consumers realize that they can get organic food at lower prices they will see no need to spend more at Whole Foods and will go to places like Costco.

Piper Jaffray, an investment bank and asset management firm, has lowered its rating of Whole foods to neutral from overweight due to the increased competition in its market.

Written by: Toma Karamanolev

Source: http://blogs.marketwatch.com/thetell/2013/03/25/a-whole-foods-turf-battle-is-brewing/

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