Obama Win May Be Bad for Whole Foods

Barron's ^ | October 31, 2008

[reaganaut1]

A VICTORY FOR DEMOCRAT, BARACK OBAMA, and a Democratic-controlled congress could potentially benefit the supermarkets in our coverage universe, with Kroger (ticker: KR) standing to benefit the most. Impact on drugstores is less clear, although we see CVS Caremark (CVS) as a winner over Walgreen (WAG). Whole Foods Market (WFMI), on the other hand, could face additional wealth-destruction headwinds.

[reaganaut1]

It's funny/sad how the regions of the country that may hit the most by Obama's tax increases (California and the Northeast) are supporting him the most.

[marlon]

I better print this article and place it on the windshields of all the Mercedes, BMW’s and Lexus SUVs I see crowding the parking lot of our Whole Foods store. Most adorened with Obama bumber stickers!

[pnh102]

I wonder how effective unionization would be in the retail sector. While I know that many grocery stores are unionized (I try to avoid shopping at these as I feel that unions are the enemy), working in a grocery store itself would probably be considered an unskilled trade. Wal-Mart and other anti-union retailers have been able to make quick work out of any organization efforts, even in countries where “card check” policies are in place.

[johnny7]

an arugula gap...?

[Faith-Hope]

My husband just said O must have read Robin Hood everyday when he was young.

[mlocher]

This is one retailer I will not miss.

[rewrite]

I went into a Whole Foods store here in Nashville the other night.
I felt like was in a foreign country!!!!!
Went by the beef counter....saw the sign “our cows were humanely slaughtered”....
It was then I asked myself, “How does one humanely kill something?”
Read it a bedtime story?
LOL

[reaganaut1]

Key paragraph from story:

“Whole Foods could face the dual challenge of higher taxes on its core customers (highend households) and possible unionization efforts. While certainly not all Whole Foods’ customers have incomes above $200,000 for singles and $250,000 for couples, the concentration of these income groups in Whole Foods’ market strongholds of the Northeast and California, suggests that there could be some incremental pressure on sales in 2009.”

[KoRn]

I wonder what effect, if any, ‘Food Stamps’ and other “free food” government programs have on grocery stores.

[Las Vegas Ron]

My husband just said O must have read Robin Hood everyday when he was young.

Just like 0, he's even got that story backwards

[Paperdoll]

Obama win bad for all fools!

[pnh102]

It's funny/sad how the regions of the country that may hit the most by Obama's tax increases (California and the Northeast) are supporting him the most.

Heh. I tell that to all my lib friends who whine about taxes... "Wait a sec... I thought your man Biden said paying taxes is patriotic! What are you complaining about?"

[Lesforlife]

So true!

I love the Whole Foods variety and quality but detest their
politics.

Thrilled that I now have another choice in CO. Sprouts claims
they are 1/3 the price and so far no inkling they are huge
lefties.

Spend accordingly.

[gridlock]

I am going to engage in a little pop psychology here, so bear with me...

It seems to me that a large part of the appeal of Whole Foods, and the reason people put up with the additional inconvenience and expense, is so they can feel better than the general society. They are dis-satisfied with the political discourse and the President, so they feel the need to be smarter, more concerned, and more compassionate than the society they disdain.

So they shop at Whole Foods, which satisfies their psychological need. Everything in the store is telling them that they are better than those who don’t shop there. They are more aware of environmental hazards, which shows they are more intelligent. They believe in “Fair Trade”, which shows they are more compassionate. They are deeply concerned about “Global Warming”, which means they are dedicated to something more than themselves.

People want to feel good about themselves, and Whole Foods knows that they will pay big bucks for it. The problem, of course, is that each of these “concerns” is ‘ginned up pseudo-scientific bullshit, and all the money and effort does not improve anything about anything, except for Whole Foods’ bottom line.

Now, if all of these customers suddenly love the President, and feel good about the way the country is going, why are they going to have to shell out money to have these feel-good needs met by Whole Foods, when Barack Obama is handing out absolution for free?

[PGR88]

Am sure they will at least see a short-term jump in organic arugala sales....

[FrankR]

"My husband just said O must have read Robin Hood everyday when he was young. "

As shallow as Obama is, I think all he knows about Robin Hood is the one-liner, "Steal from the Rich, and Give to the Poor"

In reality, Robin Hood "stole" from the evil government to return exhorbitant and punitive taxes back to the people. It was probably before "tax refunds" - you know, where the government gives us back our OWN money.

I'm quite sure the Sheriff of Nottingham was a democrat.

[mad_as_he$$]

Easy to understand. Most have sudden wealth syndrome. It is a very strange thing that occurs mostly in Silicon Valley and causes a feeling similar to white guilt.

[mad_as_he$$]

Yes he wants to the Sheriff of Nottingham.

[rightwinggoth]

i think the last straw for me came when a co-worker spent something like $10.00 on a bag of “gourmet”, organic cat food from whole paycheck, because he was concerned about all the nasty bits that come from generic retail pet food.

two minor questions

HOW DO YOU MAKE RENDERED OFFAL “GOURMET” AND “ORGANIC”

and

WHY WOULD IT MATTER TO A CAT?!?!

just sayin’

[SelmaLee]

WHY WOULD IT MATTER TO A CAT?!?!

It doesn't matter to the cat at all - just to its owner. I can think of some of the stuff my cats have killed/eaten over the years - yuck!