DAVID LAZARUS CONSUMER CONFIDENTIAL - Is Whole Foods' approach healthy?

The two-story, 77,000-square-foot emporium is like a Disneyland for foodies. From the upstairs wine and tapas lounge to the downstairs massage room, this Whole Foods is all about indulgence, sprinkled liberally with a sense of self-satisfaction for patronizing such an ostensibly "green" business.

Wandering from the store's seafood bar to its "eco-chic" clothing section, I had to remind myself that I was in a supermarket and that, at heart, this was a place where people shop for groceries.

"Whole Foods is selling an experience," said David Livingston, a supermarket consultant based in Wisconsin. "They're selling a lifestyle. You go to Whole Foods and you know you're someplace special."

You also know you're going to drop a hefty chunk of change for all that organic produce and free-range meat -- a matter that Whole Foods disputes but that regular shoppers know to be all too true.

Don't get me wrong. I'm not here to dis Whole Foods or smirk at its eco-happy image. This is a company that clearly knows what its customers want and does an impressive job of providing it to them.

Last month, Whole Foods reported a nearly 25% increase in quarterly sales to $1.7 billion, although profit slipped to $33.9 million from $39.8 million a year earlier because of the company's acquisition of rival Wild Oats Markets Inc.

For the coming year, Whole Foods is predicting a sales increase of as much as 30%.

The new Pasadena store, which joins other recently opened "larger format" branches in El Segundo and Tustin, suggests grander plans for the Austin, Texas-based chain. It seems almost as if Whole Foods is looking to none other than Wal-Mart Stores Inc. and its armada of discount superstores for inspiration.

The big difference, though, is that Wal-Mart uses its volume-driven market clout to bring lower prices to customers. Whole Foods, catering to a more affluent demographic, is focused instead on making people more comfortable while they shop for pricey produce and additive-free fare.

For a chain predicated on the notion that healthy ingredients make for healthy meals, Whole Foods also seems determined to get people out of the kitchen and eating the company's costlier prepared foods.