Boulder – In true Wild Oats Markets style, the grocer’s annual meeting Tuesday was a mix of corporate and laid-back, from profit charts to cloth bags filled with groceries for shareholders to take home.
Wild Oats’ 113 stores in the U.S. and British Columbia generated sales of $1.12 billion in 2005, a 7.2 percent increase over 2004, according to its annual report. The company now generates revenue of about $464 per square foot, said Bob Dimond, chief financial officer.
That’s well above the average of $350 to $400 at Kroger stores (including King Soopers), Dimond said, but well under the average of its main competitor, Whole Foods, which generates around $700.
“We’re one of the highest in the industry, and we believe our customer is a little different,” Dimond said.
That customer uniqueness will help Wild Oats continue to grow even as competitors such as Wal-Mart roll out organic-food product lines. The retail giant plans to start selling packaged organic goods this year.
“When we do our research, customers who shop us never shop at Wal-Mart,” said Sonja Tuitele, a Wild Oats spokeswoman. By introducing its customers to organic produce, she said, “Wal-Mart may ultimately serve as a gateway for more customers to choose stores like Wild Oats.”
Building on a successful 2005, Wild Oats plans to open 11 stores in 2006, Dimond said. New stores cost an average of $3.5 million and usually turn profitable in their first year, Tuitele said.
It’s an aggressive growth strategy clearly approved of by the company’s largest investor – Ron Burkle, whose Los Angeles investment firm the Yucaipa Cos. LLC increased its ownership of the natural-foods retailer to 14.9 percent in February. Wild Oats’ board of directors recently approved Burkle’s request to boost his stock holdings to 20 percent.
Wild Oats will announce first-quarter earnings Thursday.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
