Britain's first green superstore goes £36m into red as recession bites organic food market

 

By Daily Mail Reporter

Last updated at 1:40 PM on 03rd August 2009

 

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Britain’s first ever green superstore is languishing ever deeper in the red after losing nearly £36million as the recession takes a bite out of organic food sales.

The U.S. owners of Whole Foods Market had hoped to open 40 more emporiums across the UK after beginning trading in London in 2007.

But, two years on, they have failed to leave the capital after their flagship British shop in up-market Kensington lost an astonishing £35.9million last year.

 

Struggling: Whole Foods Market in London has failed to expand across Britain

 

They have already had to write-off close to £50million in their attempt to take on Waitrose and Marks & Spencer.

Although the giant three-storey store has proved popular with tourists and celebrities such as Jenson Button, KT Tunstall and Lulu, bosses now admit they made a string of crucial errors.

And no doubt last week’s publication of the Government’s Food Standards Agency report claiming organic food is no healthier than non-organic can’t be helping.

Commentators say Whole Foods badly underestimated how much British shoppers depend on their cars when they do a big weekly shop.

There is no on-site parking at Whole Foods and only an expensive NCP car park nearby.

“They’ve learned a lot and they are determined that with the next store they are going to get it right,” said a source. Other errors include a hopelessly underused fresh fish counter, which has now been massively reduced in size.

Initially the American owners tried to manage the store from across the Atlantic, but have now parachuted in the former North Atlantic region head Jeff Turnas to sort out the losses.

He has won long-term backing for the Kensington store from Whole Foods founder John Mackey and a commitment to open new branches in London.

The group currently run three smaller shops in the capital.

Read more: http://www.dailymail.co.uk/news/article-1203996/Britains-green-superstore-goes-36m-red-recession-bites-organic-food-market.html#ixzz0N7yzcVOq

Other errors include a hopelessly underused fresh fish counter, which has now been massively reduced in size.

Too big for this then, Rest its "sole" :laugh3:

 

R.I.P. Benson

I hope they get the problems fixed, and price things affordably - I do believe the organic foods are better - what's often overlooked in the methods of measuring vitamin content is the fact that organic foods contain significantly more of the metal ion centers in the vitamins found in the vegetable or fruit, and it is these ions that make the vitamins function; they also have more vitamins overall (especially if they're non-hybridized), and the fresher the produce, the better. Storage of fruits and vegetables knocks down their vitamin C content especially, so freshly picked and shipped fruits have the most C by far.

But the biggest thing with the organic movement is to reduce the overall impact as well, and give a fair shake to the farmers. Hence, the Fair-Trade label, the concept of locally produced foods (much less energy used to get it there, and to have it fresh), and the reduction in the amounts and types of pesticides used to produce the food. I'd rather have an organic apple, for instance, knowing that if it's done right, there's little risk to the grower, the groundwater, the neighboring community, and the people working to grow it and pick it get paid a descent wage. Considering that it's meant to be more local (unless it's something that doesn't grow in that climate), it helps reduce the carbon footprint of the food, and reduced shipping and handling should help offset the extra costs in raising produce the organic way.

What one has to consider as well is how the big ag firms have stacked the deck at the regulatory agencies (at least here in the US), and hence skew the facts to fit their agenda. Part of the reason we need campaign finance reform (from the grass roots) is to stop the placement of industry cronies into our various food-related agencies, especially at the head positions, so the agencies can do their jobs correctly once again. I would take a careful look at anything coming from them, and see who's pushing an agenda at these places.

The main problem of the organic movement is that the current cost of the goods being on average double the price of the non-organic stuff, and in times of moneygeddon, expensive food is one of the first things to go as people go down the brands.

True Dave - and a lot of that is mark-up. One of the local farms here is considering bottling their own milk, and selling direct to consumers. But that's only milk - and works well if there's a mix of other things. A few of the other farmers got together and have been selling their own beef and pork, and there are quite a few pick-you-owns here, even an organic one. I might try and freeze a lot of vegetables for winter, and market them in the tundra season - heck, if a pack of frozen veggies goes for $2.45 at the local store, and what I've got to sell is organic / sustainable, perhaps a good money maker!

Yes, the economy has begun to rebound, if only tacitly thus far - a lot of people still unemployed, and people with the cash clam up when the economy is cold as well. And it's "boutique" priced, this organic food - maybe the market's not strong enough yet for volume sales to lower the price of the foods, but it's true - it is high. Buy local & sell local is really #1, as you know how it's been grown/raised, it's 100% fresh, keeps the money in the local economy, and save tons of fuel! (I know - not possible with everything - and then we're all looking to find the best solution for trade as well - so much political BS to overcome - I like the 'fair trade' idea quite a lot, and hope it stays true to it's saying.)

this then[/url], Rest its "sole" :laugh3:

 

 

Yup - it's definitely irreplaiceable................................. :rolleyes:

LOL at the green campaigners!