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Natural selection among grocers

New competitors move into the Southland, and the supermarkets adapt.

November 03, 2007|Jerry Hirsch, Times Staff Writer

Big stores in dense urban areas such as Manhattan and London have helped Whole Foods ring up a 7% increase in comparable-store sales this year, an important measure of financial health. The figure, which represents sales at a company's stores that have been open at least a year, is well above the 3% to 5% growth rate among conventional grocers, said Andrew Wolf, an analyst at BB&T Capital Markets in Richmond, Va. But the format has fared less well in the Midwest and won't be a competition killer in every market, he said.


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Whole Foods must also contend with its reputation for high prices; it's been nicknamed Whole Paycheck by some shoppers.

Rosanna Skupinsky, whose job is to place music in movies and television shows, works at an office near the Whole Foods on Foothill. She said she liked to eat lunch at the store "because of the healthy options." But when she goes grocery shopping, she heads to Trader Joe's, which she believes charges less.

Besancon disputed the idea that Whole Foods is overpriced.

"Look at our 365 brand. If you come here on a budget, you can leave with the best natural food in your basket," he said as he walked down the pasta aisle in the soon-to-be-opened Pasadena store.

"We have 12 feet of pasta sauce here. It starts at $1.99 and goes up from there."

Trader Joe's sells a similar-size jar of house-brand pasta sauce for $1.49. The Prego brand at Ralphs is $3.49. Over in produce, a 6-ounce basket of raspberries sold for $2.99 at Whole Foods this week, the same price per ounce as at Trader Joe's and $1 less than the identical-size package at Ralphs. A 1-pound box of saltine crackers was selling for $2.49 at Whole Foods and $2.99 at Ralphs; none were available at Trader Joe's.

Still, Besancon said, shoppers shouldn't be surprised to find some goods that are more expensive at Whole Foods. It reflects the added cost of producing "natural" and organic products, as well as the large selection of foods, he said.

Whole Foods devotees don't object.

"I know it costs more than other stores," said Milt Richardson, a retired lithographer from Altadena. "But the pork chops are fabulous."

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jerry.hirsch@latimes.com

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