FIFTH STREET Health-conscious consumers may have to flip-flop a little further to get their wheatgrass and organic lasagna now that the two largest natural-food retailers have decided to join forces.
As part of the $700 million merger between Whole Foods Market, Inc. and Wild Oats Markets, some stores may be closed, especially in areas where there is a high concentration of both. In Santa Monica, there are two Wild Oats stores and one Whole Foods.
On the flip side, Whole Foods is expected to make significant investments in remodeling stores before eventually rebranding them, meaning Santa Monica’s locations could be bigger and better than ever.
“Before making any decisions, however, Whole Foods Market will review each store individually to see where it fits in the overall plan,” said Ashley Hawkins, a spokesperson for Whole Foods.“In some areas, remodeling and re-branding or relocating stores will happen quickly; in others, the change will happen over time and is expected to take up to two years.
“We are committed to making sure there are many convenient locations for our shoppers.”
Outside of Wild Oats on the corner of Fifth Street and Wilshire Boulevard, many shoppers expressed concern over the future of their beloved, “granola” grocery store. While many shop at both Wild Oats and Whole Foods, many hate to see the Wild Oats brand go, and hope that whatever happens with the merger, the locations in Santa Monica remain open.
“If they close this place down, that would be very inconvenient,” said Jo Tastula, a yoga instructor who travels from her home in Venice to buy groceries in Santa Monica.“I shop at Whole Foods too, but this is just closer to my studio.”
Jeff Goldberg, who also works near the Wild Oats on Wilshire Boulevard, said he is concerned about rising prices.
“I try to eat organic foods when I can and I like Wild Oats because they have good, quality food and supplements that I can’t find anywhere else,” Goldberg said. “Now that there is going to be some sort of a monopoly over the organic, natural foods market, I’m worried that prices may go up.”
Goldberg said if the cost of groceries rises too high, he might be tempted to look at more traditional markets, such as Ralphs or Vons.
Scott Stanz had a different take on the merger. He believes that by joining forces, organic markets will be stronger and more able to compete with big box stores like Wal-Mart.
“We need more variety,” Stanz said, holding a bag full of wheat-free cookies and goat’s yogurt. “These stores support life. So what if you have to pay a little more for the quality.”
If the merger is approved in April as expected, Stanz hopes Whole Foods keeps the juice bar at all Wild Oats locations.
“If they took that away, it would be a drag,” he said. “I think they should keep all of the stores. You can never have too many of them.”
Mike Dominguez, a loyal shopper at both outlets, said the Wild Oats location on Wilshire Boulevard should stay, while the location at 14th Street and Montana Avenue could go if necessary, since a Whole Foods is located nearby at 22nd Street and Wilshire Boulevard.
“Downtown shoppers need a place to go to buy groceries,” Dominguez said. “As you can see, this location (on Fifth Street) serves a lot of people who are on foot. A lot of locals walk to this location and I think that’s better than having more people driving in their cars.”
With sales of approximately $1.2 billion, Wild Oats is one of the leading natural and organic foods retailers in North America. The company, founded in 1987, currently operates 110 stores in 24 states and British Columbia.
Originally published in the Santa Monica Daily Press print edition on March 8, 2007. Read the original PDF.