As traders have responded to a recent 15 percent decline in shares of Whole Foods Market, Inc. WFM on the heels of an FDA warning letter, some have been left scrambling for good info on the company.
Investors have been passing around a Bloomberg Businessweek article Wednesday: "Whole Foods Is Getting Killed by Aldi. Is a Millennial Grocery Chain the Fix?"
The article discussed a relatively new initiative by Whole Foods, the 365 concept. Portrayed as a quicker, more fun alternative to the already-rather-trendy Whole Foods, Bloomberg's Joel Stein pointed to the smaller, cheaper, more aesthetically pleasing offering in 365.
Contrasted against that image, Stein described Aldi as a "no frills" store highlighted by five concise aisles.
For those Whole Foods investors looking for informative content and an update since the FDA letter, one may have to look elsewhere. Aside from the few bullets above, the only piece of fundamental information to justify the "killing" of Whole Foods by Aldi described in the title seems to be Aldi's expansion effort. Stein noted Aldi has planned to expand its total U.S. store count by about 30 percent, from 1,500 stores to around 2,000 stores by the end of 2017.
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