No. of Recommendations: 3
Hi, David,

Very interesting comparison of the numbers and thank you for the cash flow comparison. Though I'm not a competent financial analyst and I can't really analyze the impressive or unimpressive cash flow numbers reported by the various groceries, WF's seem awesome. But as a Whole Foods stock holder, my concern is the growing out right competition that Whole Foods is presented with and how will their cash flow sustain when all the various competitors get ramped up in the 'natural' sector and continue to steal a considerable piece of WF's share of potential grocery spend?

I recently listened to two Kroger conference calls and they definitely are not finished with their build out of this lucrative part of their business and they seem hell-bent on not losing any of their present shoppers to the 'competition' as the 'natural' trend picks up national momentum. They also expect to win new customers over with glamorous new builds (and they hinted at acquisitions).

Their debt seems high to me; but OK, so what, in the context of pure competition for the grocery dollar? Kroger may go broke and have to reorganize, but my issue is that Kroger is spending to invade Whole Foods' market niche and what will that initiative do to Whole Foods growth strategy? I think the Kroger strategy (along with the other competitors' strategies) will put a lot of pressure on WF. Sometimes I think the competition may turn out to be one of those 'races to the bottom' for all of them. I'm holding on to my stock too, but I'm keeping a keen eye on Whole Foods next steps.

Thanks for your WFM analysis and all your other insightful notes and observations on your forum. And good luck with your new position at TMF!

J.
Long on WFM
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