Organic store that's a whole lot of trouble for the supermarkets - News - Evening Standard
       

Organic store that's a whole lot of trouble for the supermarkets

Mary McCartney at the Whole Foods Store in Kensington which stocks a range of Linda McCartney foods

Sales of organic products are predicted to soar by 50 per cent in a boom triggered by the arrival of an American eco-supermarket in the UK.

Shoppers queued on Wednesday for the opening of the first Whole Foods Market store.

The 80,000 sqft food palace in West London marks the start of what its bosses hope will be a retail revolution.

The firm has aggressive plans to open 40 similar stores in cities across Britain.

Bosses believe they are in a strong position to challenge the limited ranges, produced on an industrial scale, of the big supermarkets.

For example, their store offers 21 varieties of tomato compared to five or six in supermarkets.

The firm, which started as a farmer's cooperative in Texas in 1980, has become a retail juggernaut with 43,000 workers and annual sales of £2.8billion.

Its success has been built on the fact shoppers are prepared to pay high prices for natural, local food which they believe is healthier.

Its green credentials have been given a fashionable lustre in the U.S. by celebrity customers such as Charlize Theron, Gwyneth Paltrow and Angelina Jolie.

However, shoppers who want to buy into the green dream will find it carries a hefty price. Generally, Whole Foods Market is more expensive on staple items, than the major supermarkets.

The price premium on some of its specialist organic products, for example fresh produce, can be more than 15 per cent.

However, it is cheaper than Marks & Spencer and Waitrose on a significant number of fruit and vegetables and shrewd customers can find quality produce at attractive prices.

Such is the money to be made from organic food that the company's U.S. stores generate twice the profit per square foot of any other supermarket.

The arrival of the American interloper is already having a profound effect on the food being offered on high streets across the country, according to the Institute of Grocery Distribution.

Rivals have responded by devoting far more shelf space to organic and locally-sourced fresh produce.

It is believed the displays and layout offered by Whole Foods will set a trend to be followed by rivals.

The flagship store is dressed with colourful pyramids of fruit and vegetables, sprayed with a fine mist to create a dew-fresh look.

There is a muesli bar, where customers can mix different grains, dried fruit and other items to come up with their perfect breakfast cereal.

An in-store bakery offers 35 varieties of bread made fresh on the premises every day, while shoppers will be able to grind nuts to make their own peanut butter.

First through the door was retired social worker Jay Rice, 62, who caught the 5.20am coach from Bristol for the opening. "I think it is amazing that a store like this exists," she said.

"I am totally committed to organic and the environment. It has been my whole life for 30 years."

The chain's Boston-based vicepresident of purchasing David Doctorow said the firm was "confident but not cocky" about its prospects in the UK.

"We believe that the UK market can support up to 40 stores," he said.

"There is no definitive timetable for that.

"It could be five or ten years before we get to that number."

Senior business analyst at the IGD, Gavin Rothwell, believes Whole Foods will spur a change in shopping and eating patterns.

He said: "Whole Foods Market will tap into, and accelerate, the longrunning consumer trends of health, well-being and ethical consumerism.

"These are already helpingto drive sales growth in premium products to the tune of 10 per cent per year."

The IGD predicts that current UK spending on organic, Fair Trade and premium food lines will surge from just under £13billion this year to £19billion by 2011.

The figure for organic alone is expected to soar from £1.6billion to £2.4billion.

The shop was previously the Barkers department store in Kensington.

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