Founded in 1980, Whole Foods Market began as a small grocery store in Austin, Texas, with a 19-person staff. Now, it has over 500 stores across the U.S., Canada, and the UK.
Amazon acquired Whole Foods nearly eight years ago, and since then, the company has helped boost the grocery store chain’s growth, increasing sales by 40% since 2017 and upping its store count from around 460 stores to 543 worldwide.
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Although Amazon doesn’t separate the grocery store chain’s earnings, the company continues to grow at an astonishing rate.
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According to Amazon’s earnings report for the full year of 2024, net sales grew 11% year over year, with its North American segment up 10% and 9% internationally.
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Amazon and Whole Foods use the international expansion strategy to boost growth
Companies tend to expand internationally to grow brand awareness and reach other markets with greater potential to boost growth and increase revenues, which is why Amazon has been expanding internationally since 1998.
Whole Foods expanded internationally in 2002, opening its first Canadian location. Two years later, it expanded its market to the UK until halting new projects in 2014.
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Amazon’s (AMZN) international expansion strategy has worked for nearly thirty years. So, after gaining ownership of Whole Foods, the company decided to try this tactic again with the grocery store chain, but this time under its management.
Whole Foods announces the opening of its first UK store in the last decade
Whole Foods announced it expanded its store footprint internationally by opening its first location in the United Kingdom on Mar. 25, marking over 10 years since its last store opening in the country. This new store is located in London’s King Road district, right in the city’s heart, making it a prime location for this highly-awaited return.
Plans to open a new Whole Foods location in the UK were first unveiled in February, amounting to six stores total stores in the country.
“Continuing our expansion outside of the U.S. enables us to extend our reach to more customers while advancing our higher purpose to nourish people and the planet,” said Whole Foods Market CEO Jason Buechel.
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This newest UK location contains all the same features as the ones in the U.S., including a seafood and meat counter, fresh produce section, specialty departments, wellness and beauty isle, bakery, wine and beer area, prepared foods, and a full-service coffee bar. It also has a curated grocery section with local products from over 80 brands, differentiating these UK locations from the rest.
“We know customers in the U.K. are seeking high-quality natural and organic products. As we plan for the future, we are actively looking at this market and opportunities to bring Whole Foods Market to more customers there,” said Whole Foods Market & Amazon Executive Vice President Growth & Development Christina Minardi.
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