It’s been a tough couple of weeks for the recently acquired grocer.
Imagine this: as an executive at Whole Foods Markets, you introduce a new strategy meant to improve product flow and optimize shelf space.
Vast changes are introduced with the new plan. You centralize purchasing and install new technology. Suppliers are asked to comply with new merchandising fees, and work with a third-party inventory management consultancy.
Then, in the midst of all these changes, stock-outs begin to happen nationwide. Imagination rolling? That’s the nightmarish scenario Whole Foods is currently in.
A vast new strategy aiming to streamline its supply chain appears to be backfiring, as new systems are causing stock-outs and prompting low employee morale. And all of this is happening amid a transition to an Amazon-owned property.
The chain is blaming its new order-to-store system, but some experts wonder whether it’s not the hallmark of an identity crisis.
At least Wall Street appears to be giving the giving the food retailer a pass, thanks to Amazon's promises of a brighter future ahead.