Yes, those tiny bare-bones 365 stores are supposed to save the company and restore the mojo. However, they are not going to break out the performance of this unofficial subsidiary. So there will be no way to evaluate the truth of that assertion! If this is really the big turnaround plan, then tell us the truth. Tell the shareholders what you're actually spending to create, build, staff and market these new stores. Put the store leases on the balance sheet instead of hiding them off-balance sheet like you do now, pretending that you can change locations like changing the brand of glass cleaner you use. Show us the value of the equity invested along with all of the assets and liabilities. Let's see the gross and operating profit margins and the sales trends. YOU REFUSE TO DO THAT! Instead, you'll declare that it's all going "better than expected" and that millenials are excited and engaged, the mojo is back, and everyone is having orgasms over 365 corn flakes and 365 almond milk, digital coupons and weighing their own produce. No evidence, no proof, nothing but the same hype and nonsense. Kind of like when same store sales dropped 3 percent instead of the projected 2 percent, but earnings per share went up because you guys borrowed a billion dollars to reduce the number of shares. What are you going to do now? Borrow another $billion so you can "surprise" us again? Yes, welcome to Conscious Capitalism, where our core values consist of how to make your ratios grow by simply shrinking the denominator. Not everyone is as stupid as you think we are.
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@I209LMc-7fmx: LOL!! Excellent response. We all know that the actual numbers are a mystery inside a riddle wrapped in an enigma. There is no breakout accounting available for investors under Generally Accepted Accounting Principles because that would require honesty and transparency instead of catch phrases like "mojo", "killing it", "going forward" and "shared fate." If 365 is the future then where is the proof? Obviously there's really nothing to brag about in terms of ACTUAL profitability because if that were the case, then we would see 365 set up as a subsidiary with its own balance sheet and income statement. I expect the next earnings call will feature an array of comments about "customer engagement", "basket size" (with no specifics about what's being EARNED on those baskets at the 365 stores), "excitement" and "buzz."
Re: Post ID: @I209LMc-6rfk --Interesting choice of words "killing it", "watch out", "trickle". "Killing it" obviously refers to the unsanitary, potentially deadly conditions the FDA recently busted WFM for. "Watch out" has many applications. In addition to being a warning for customers to "watch out" for listeria and other dangerous bacteria, it could also refer to the dishonest weights/scales (or any other ways WFM devises to rip off customers). Team members should also "watch out" because the head honchos plans for "killing it" refers to what they will do with your job. "Watch out" is also a good warning for any investors. Sales that "trickle" aren't anything to brag about! Let's see what else could "trickle" apply to? Oh yeah, the condensation "trickles" onto the salads and pasta at the food prep facility!
The "actual numbers" are in smote under the TS region option. They are killing it. No doubt. Basket size is comparable to the big box stores. Ovetall Sales also. Watch out. It's working. Itll all trickle down hill sooner rather than later.
Wow, right on schedule, execs are on here defending 365 as the future and questioning the need for transparency and actual proof. AGAIN, if one is going to brag that this is soooo profitable then why not demonstrate that by setting it up as a subsidiary and breaking out the results. As part of this effort, stop the despicable practice of hiding essential assets like stores off the balance sheet. Figures don't lie, but liars to figure. These assets need to be there where everyone can see them along with the associated obligations and/or equity investments needed to support these assets. These assets needed to be written off (amortized) properly because all you guys are doing is artificially increasing your return on assets and artificially reducing debt/equity because if you can make assets disappear then you make the liabilities disappear and the equity looks higher than it is. You can not change locations like changing the brand of paper towels in the rest room. These are long-term capital expenditures and should be ON THE BALANCE SHEET. And 365's results need to be broken out separately. Otherwise stop they hype about mojo and engagement and how very "successful" or "better than expected" they are.
I didn't realize how many people from management come here, even to post comments. Which is fine, except when the comments deflect reality. Leadership burnout is a problem, but let's be clear. It is not the biggest problem. Anyone who would declare that is completely out of touch with what's going on and frustrating thousands of team members across the board, and that is global leadership arrogance, straight up, across the board. It has bred and continues to breed jadedness among older TMs, frustration with TM seeking to move up or fix problems, or confusion with new TMs. Until this issue is addressed and fixed, the company will continue to stagnate, continue to lose sales, and continue to lay people off and eventually start closing stores. I'm sorry -4nvf, but look around, on this site and at your home store. Things aren't getting better. The legacy stores can't shrink in size or stop carrying enough products to fill their stores. Something drastic will have to happen and unfortunately it's not going to start at the top, this company's 'leaders' are simply to arrogant and childish for that.
The 365 concept means that many currently employed in the legacy WFM stores will be losing their jobs. To those team members it is irrelevant whether 365 is a "big success" or not because this very business model has put them out of work.
Also, where is the transparency? If indeed 365 is so wildly successful, where are the actual numbers? Without actual numbers (and of course even those can be deceiving, but at least it's a start), it's all just hype.
I can verify the Crave team is the sh-- and they know what they are doing. For those unhappy with whole foods structure you should look to 365 as a relief and not a hindrance, going forward wfm will start to implement many functions that are successful here. think of 365 as an incubator and proof of concept, yes things should be better at traditional stores but they will get there, the only crux is if leadership can holdout. The biggest hidden problem is leadership burnout lately, I hope whole foods is on a plan asap to address or I feel that they will be surprised like last time at the amount of those taking severance in September or just stepping down
A lot of vitriol here, I would like to add some insight with no opinion either way. Crave 365 is actually a big success so far in several different ways behind the scenes. #1 Financials - the Silver Lake store is making money plain and simple, more than they projected, no I will not give out or discuss actual numbers. #2 Efficiency - Not only for the sake of WFM corporate finding a new outline that works for the bottom line but sanity for the team members as well. Although busy there is less BS to wade through which is causing in my opinion leadership burnout within traditional stores.
I'm open to having a thoughtful discourse on here but if it reflects the semi nonsense of the original post I won't reply.
Of course they are "trying to make it work." But that doesn't excuse the lack of transparency. What is it COSTING to make it work? Is it profitable? It's not about anyone's bitterness, it's about supposed "leaders" backing up their talk with specific financial facts. When "mojo" and engagement are items on the balance sheet, then those things will be relevant. Till then, put out the numbers or shut your bloody pie hole. The Crave team needs to realize that investors crave actual numbers not hype.
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Of course they are "trying to make it work." But that doesn't excuse the lack of transparency. What is it COSTING to make it work? Is it profitable? It's not about anyone's bitterness, it's a out supposed "leaders" backing up their talk with specific financial facts. When "mono" and engagement are items on the balance sheet, then those things will be relevant. Till then, put out the numbers or shut your bloody pie hole.
They are desperate for staff in their second 365 location. Terrible locale in the wealthiest zip code in the state during the middle of an affordable housing crisis. No one quite understands the team structure and everyone is skeptical less than 30 days til opening.
With the dodgy technology put together to make the individual tomatoes ring up in the 365 store should be interesting to see how it develops as more stores open.
Good times for support!
Well said. The 365 Stores are too little, too late. They will not be able to hold up the Titanic.
It's a concept store with currently one up and running and it has barely been open a month now. I think the CRAVE team is a little busy trying to make this work rather than make a bunch of bitter nay-sayers on the internet happy.
Patience, my friend. Our fearless leaders will release the numbers once there are sufficient data to manipulate, erm... analyze.
Great analysis..a lot of shady book keeping and b.s. press releases..
Thanks. The WFM executive team's press releases make for remarkably entertaining bathroom reading! These twits wouldn't know how to conduct a proper business if instructions crawled out of their (insert orifice here).
Great post! Adding to this a very 'doggy' executive management that is on their own agenda with disregard for their investors and most importantly their employees who actually steer this company. Yes, I agree that they will very soon dip into the resources again and borrow another billion. Before you know it this company will be drowning in debt with a SOS flag flying above the sinking ship. Nicely analyzed!