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Whole Foods Market Q1 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 10:59 AM ET February 22 2010


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And also -- You mentioned that you saw more items from commissary and one of New York stores, that’s a changing thing. There’s a certain amount of, a certain percentage of products that we provide from our commissaries and a certain percentage that comes from the stores and it really varies. Some times they shift it around but the percentage stays fairly constant. We have not been increasing the amount overall of goods in stores from our commissaries versus what’s produced in the store.

Walter Robb

I think the bigger story really is the gross margin is just the ability that the balance we are striking between the price investments, the pricing competitiveness and the gross margins that we’re realizing through the improved disciplines, inventory control which is a form of shrink control and those sorts of things. That balance is extraordinary right now and I think that is the bigger story right now, Scott, in this quarter.

Scott Mushkin - Jefferies & Co.

I just have one follow up. It is just, are you seeing any -- I notice that the amount of prepared foods and perishable foods have been going down for a couple years as a percentage of your sales. Are you seeing that trend reverse and then I will hand off the mic?

John P. Mackey

I don’t know why you say that. We don’t report that number.

Scott Mushkin - Jefferies & Co.]

It was in the K I think last…

John P. Mackey

We report in out percentages.

Walter Robb

Well, I’ll add something and then AC can add to this. Essentially in the last year and a half the numbers show that customers are eating more meals at home than they were eating out for the first time, that went below 50%. We have seen some drift toward the center store. We talked about that in the last couple of calls that’s true as people prepare their meals. Although I will tell you that we are seeing in this uptick, we are seeing such strength in produce in particular, that we will watch those numbers. I’m not sure we can say where that’s going to land. We are seeing extraordinary strength in produce right now.

A.C. Gallo

I think we can say that at the beginning of the recession, we definitely saw a shift toward center store. And what we have been seeing a rebound now in the perishable departments, a lot of strength in the perishable departments we have seen in the last quarter or so.

Scott Mushkin - Jefferies & Co.]

All right. Thanks very much. Thanks for taking my questions.

Operator

We will take our next question from Ed Kelly with Credit Suisse. Please go ahead.

Edward Kelly - Credit Suisse




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