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John Mackey

  • Power 50 Ranking: 24
  • Title: Chairman and CEO
  • Company: Whole Foods Market
  • Key Development: Settled FTC case; acquired a new private equity investor; opened 20 new stores in 2008, expanding into three new cities; expanded value push; and added four new board members.
  • What's Next: Debuting Non-GMO seal on private-label products and continue to raise the bar on quality standards.

John Mackey - Power 50 Profile


Last year was rough for many retailers, but with shoppers trading down, switching formats and looking to save money, it looked like the recession had the potential to pull Whole Foods Market to a low point in its high-flying history.

But John Mackey, chairman and chief executive officer of the Austin, Texas-based natural grocer, quickly led some big changes to the company’s business strategy.

All told, Whole Foods’ annual sales in 2008 increased 24% to $8 billion, and comparable-store sales increased 5%. During the year, 135 stores set all-time single-week sales records. Average weekly sales were $656,000 per store, a 4% increase year over year, translating to sales per square foot of $882, excluding the acquired Wild Oats stores.

However, the economy began to impact sales in the second half of 2008, and Whole Foods acted quickly, eliminating 306 positions, lowering new store openings for fiscal year 2009 to 15 from the planned 25-30, and terminating 13 leases. Capital expenditures were cut, cash dividend payouts were suspended and $425 million of stock was sold to affiliates of Leonard Green & Partners.

In addition, the retailer expanded its value push. In July, it launched the “Whole Deal” program, which includes a quarterly in-store guide with specially priced discounts, budget recipes and coupons. It also expanded its private label, control brands and branded products, and more than doubled its offerings in its Whole Trade brand.

“First came the dose of reality when the economy got weak and they were a little exposed, or at least their image was a little exposed to the high side. They’ve subsequently and pretty aggressively tried to not only change that within the store, but I think organizationally, they’ve also worked inside to become more efficient,” said Simeon Gutman, vice president, equity research, Canaccord Adams.

— Amy Sung