Whole Foods in a Pandemic
Cato Podcast
Cato Institute
4.5 • 979 Ratings
🗓️ 28 July 2021
⏱️ 16 minutes
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| 0:00.0 | This is the Katori Daily Podcast for Wednesday, July 28th, 2021. |
| 0:07.0 | I'm Caleb Brown. |
| 0:08.0 | With labor markets and supply chains rattled by pandemic, how has Whole Foods weathered the changes? |
| 0:14.0 | Last week I spoke with John Mackey, Whole Foods CEO, about how the pandemic has changed |
| 0:17.4 | his business and what this strange event means for retail going forward. |
| 0:22.1 | How has Whole Foods weathered this pandemic? |
| 0:24.0 | The pandemic of course has been difficult for everyone. It's been difficult for |
| 0:29.8 | food retailers. I mean we've had to sterilize everything and social distance |
| 0:36.4 | and mask and that went on for a long time and but of course we were also as an essential business so we had a lot of our |
| 0:49.3 | business actually increased during the pandemic and we because Amazon put such an emphasis on home |
| 0:56.8 | delivery that we really saw that part of our business significantly grow. |
| 1:02.8 | And though we had to shut down our prepared foods. |
| 1:06.2 | We had our prepared foods drop initially over 75%, |
| 1:09.5 | but that was made up by very large increases in our in our grocery, produce, meat, and seafood |
| 1:15.4 | sales and I might add beer and wine sales too. Yeah and with the with Amazon |
| 1:22.4 | in the Whole Foods business, you had a transition already to delivery that was underway. |
| 1:30.0 | Yeah, from the first day that our deal closed, they put a real emphasis on scaling up delivery. |
| 1:37.6 | So that ended up being present in terms of we, I can't say we were ready for it when COVID happened because our sales |
| 1:46.6 | we had such an increase in sales to delivery that we we couldn't handle it initially |
| 1:51.5 | we didn't have enough we didn't have enough people working on delivery |
| 1:55.6 | we didn't have enough drivers we didn't have enough pickers we didn't have the systems |
| 2:01.1 | themselves could not handle the order loads that were coming in, but Amazon has a lot of resources. |
... |
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