Walmart has jumped into the battle ring of organic food with Wild Oats. Bringing some fierce knockout food punches to organic food markets such as Whole foods and Trader Joe’s. Walmart plans to invade farmers market territory by cementing a new-found partnership with Wild Oats. The dominating retail store announced Thursday that Wild Oats organic food products will blaze the shelves in some 2,000 locations.
Walmart dropping Wild Oats landmines throughout the organic community is tremendous and difficult to dodge. Wild Oats is a natural food market hatched in 1987 in Boulder, Colorado. The natural food company operator was the second largest organic food chain in the United States at one point in time. The chain was only able to sow its Wild Oats across 24 states, parts of Canada, and British Columbia up until 2007. At that time, Whole Foods purchased the chain for approximately $565 million despite discord with the Federal Trade Commission. Several months after approving the merger a U.S. Court of Appeals for the District of Columbia Circuit ordered Whole Foods to dissolve their share holdings.
Walmart scooping up the pieces to the frayed Whole Foods ordeal is an excellent addition to the organic products currently possessed. The weight Wild Oats held in the natural food world was stupendous before sales began slanting. With 56 percent of Walmart’s sales coming from groceries this may be the life jacket Wild Oats has been waiting for. Before this union, 1,600 organic items have assisted in contributing to Walmart’s $279 billion grocery revenue.
The increase in purchase of organic food products borders on the lines of outrageous, bananas, and ridiculous all in one. The Nutrition Business Journal affirmed that sales in the organic grocery industry have boosted $42 billion from 1998 to 2012. The organic food industry, raking in $8 billion in 1998 and $48 billion in 2012, may possibly hit trillions by colliding with another multi-billion dollar company. Walmart will continue to serve up those undercutting prices that heave-ho competitors to the side-lines and eventually out of the game.
Walmart is no stranger to low-balling rivals and reigning complete dominance over retailers and grocers. The dominating force of retail is equipped to offer its most recent venture 25 percent lower than its fellow competitors. Internal research conducted suggests that 91 percent of Walmart shoppers would purchase organic products if available and priced correctly. Slashing prices 25 percent below the competition and a consistent regimen of price matching is a very generous answer to this research.
Walmart is taking a gigantic leap into providing affordable organic foods. There are many who are willing to abide by a regime of healthy eating, but simply cannot afford it. Organic and natural food establishments are known for the limited availability and high prices. Many markets are only open for business on odd-ball days of the week, hence local farmers markets. There is no wait for that to-die-for natural taste only attained on weekends and every other Tuesday from that traveling farmers market. Walmart can not only supply lower prices, but there is no worry of waiting till the following week to make a purchase as it offers twenty-four seven services. Walmart will increase its strategy on the battle field of organic food as it merges and shelves Wild Oats products.
By Ebony Waller