NEW YORK (CNNMoney.com) - Wal-Mart, the world's largest retailer, pushes organics with a vengeance.
Who stands to benefit?Organically inclined consumers because Wal-Mart price busting mentality.
Who should be very afraid? competitors such as whole foods (research), wild oats (research) and other chains, are aggressive expansion in this area or have either built your business on the sale of "natural foods".
Wal-Mart (research)'s already the No. 1 seller of food, a category, it entered its first Supercenter opened save it in 1988.Today the company sells fruit and vegetables, milk, bread and other packaged foods in almost 2,000 Supercenter stores and about 100 smaller neighborhood market locations.
Organic foods like milk, and the retailer introduced only five years ago in the mix to.
Industry observers believe Wal-Mart hesitated, wholeheartedly in the lucrative 15 billion dollars-Organics market to diving, because it don't think more expensive natural foods were a good fit with the core low-income consumers.
Not mehr.Heute it's all about Organics and "going green" at Wal-Mart, not just in food but in clothing and even in electronics and other products for the budget, in particular, as the company strives, their profit margins, expand find new growth opportunities and appeal to less price-sensitive customers.
Wal-Mart spokeswoman Karen Burke said the retailer's already his organic selection in fresh produce, dairy and dry foods this year has doubled although it refused you to say, exactly how many bio-food units currently on the discounter's shelves are stored.
"Many customers told us, that some sort of bio product or others interested in sind.So we wanted to make it easy for you to buy it at a Wal-Mart", said Burke, added that Wal-Mart hopes the low price leader in organics.
Among other initiatives, the retailer launches a line of organic cotton baby clothing in may under its private label "George" and organic infant formula will also organic cotton t shirts einzuführen.Es than to sell part of this year's back-to-school offers.
Also eat Wal-Mart wants that "healthy" concept into the environment, to take home and electronics.
To this end Wal-Mart has promised to buy more fish from sustainable fisheries, it is selling more energy-saving light bulbs and asks all its laptop manufacturers to develop more eco machines, to limit the use of hazardous components in you.
From niche to mass market
Holly givens, spokeswoman for the Organic Trade Association (OTS), Wal-Mart sees increased interest in the organics market as a positive development for the industry and consumers.
"At any time a retailer looks to expand in Organics, it's good news for shoppers, because to get more access to these products", she said.
On the provider side thinks could Wal-Mart stamp of approval superior a tremendous incentive for non-organic farmers, promoting their sales to Wal-Mart offer expansion in organic food production as a way.
"Organics is only about 2 percent of all food and beverage sales in the U.S., but the market is growing 20 percent per Jahr.Das is much faster than the 2 to 4 percent growth for organic food sales," said given.
Wal-Mart foray into organics to the reduction in prices for consumers, said Craig Johnson, President of the retail consulting group customer growth partners.
"" Wal-Mart Gets a bad rap for many Dinge.Leute say Wal-Mart pushes its suppliers too much and doesn't hurt your business, because it will pass these savings on to consumers through lower prices, ", said Johnson."But as these intermediaries, Wal-Mart has also helped its suppliers to achieve more efficient and cost savings in their businesses."
Givens rejected an opinion about whether Wal-Mart policy pricing of is organic food farmers differently as to say that she believed it was important that organic farmers "are able to earn a living doing what you do."
Can the whole foods to Wal-Mart get?Natural food sellers of whole foods, wild oats, Trader Joe's and even conventional supermarkets that have a small mixture of organic products have to be very careful with the Wal-Mart due to the size and volume of business generated it, said Andrew Wolf, analyst at BB & T capital markets.
"If Wal-Mart decides on pursuing ever even if its is tangent relating to which involved whole foods or wild oats, it has with caution to be mentioned" Wolf said.
In fact, whole foods investors have taken note with the stock after below around 21 percent year to-Date.jedoch share the rival wild oats better, was 43 percent wins this year so far.
If Wal-Mart threat spooking investors was would then both companies stock headed south, have sagte.Laut wolf wolf who has a "hold" rating on the stock exchange, whole foods still logging double-digit annual sales but the retailer has ratcheted up its new store growth and is affecting the baseline and pressure on the stock.
"" No doubt Wal-Mart is a Anliegen.Dies a franchise is that has a reputation for providing great value middle and low-income customers, said Wolf."Right now I see also not much of a customer overlap between whole foods and Wal-Mart."Whole foods in the same markets like Wal-Mart to operate with a higher income shopper."
Johnson agreed with Wolf.
"" I dont Wal-Mart as a major threat to whole foods now sehen.Es is gaining a lot of market share in organic,"said Johnson.""The diversity of its customer base is to steal away immediately to Groß.So instead of customers of whole foods, I think Wal-Mart the natural food market successfully to low and moderate income buyer extend it could. the strategy to the upscale certainly fits with Wal-Mart move but in a limited way."
Sonja Tuitele, spokeswoman for wild oats, the company said Wal-Mart Organics initiatives definitely aware was not too worried.
"We can do this from two nähern.Es is very little overlap between our buyer different angles and whale MartWir are a specialty retailer and our customers about the price first focus", said Tuitele.
"" The other way, is that it is a good thing because Wal-Mart could help make more people food available better quality, which is also better for the environment, to look at it,"she said.""Maybe these people come to wild oats today because of the high prices but at least you'll start thinking, you decide what you put into your body sind.sobald, lead an organic lifestyle, then we come over to us for greater variety of products and training, that for the consumer to provide a healthier lifestyle."
Whole foods could be reached immediately for comment.
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