Whole Foods Market Inc.

1231 WordsDec 9, 20145 Pages
INDUSTRY EVOLUTION Whole Foods Market Inc. is a service provider in the grocery industry, which report in the US economy under the North American Industry Classification System NAICS 42441, General-line groceries merchants wholesalers, by the time the company started operations in 1980 supermarkets had a history of 51 years. Supermarkets unlike other type of retail is considered truly American in origin, self service grocery stores are traced back to 1912 in Memphis Tennessee, and it was in 1930 when Michael Cullen opened the first store of the King Kullen supermarket chain, it was around that time after the big depression that the independent stores which at that time only offered dry groceries started to transition to the supermarket…show more content…
The economy store format presented a standardized store format with branded products, that were delivered in a vertical integrated supply chain of trucks, warehouses, and factories. A&P’s didn’t offer home delivery but offered credit to its customers which provided excellent results for the company. Another of the innovations is they used modern accounting practices, and management principles that translated in to efficiencies in both ends of the business, customers and buyers. All these innovations paid off and the company moved from having 650 stores in 1914, to 4,224 in 1919 (Lebhar, 1952). Along with A&P’s, Kroger, and Safeway were also early adopters of the new business model of chain format, all the benefits that resulted from this business model made chain stores dominant in the grocery industry. Between 1919 and 1932 there was an increase of market share by 26.6% for the top 5 chain firms in the U.S. The decade between the 1920’s and 1930’s was the period of the creative destruction as the new business model supplanted the old. It was during this period that the shake out of the industry started because maybe more than 100,000 small companies exited the industry, and the remaining ones tried to made alliances as cooperatives with
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