Whole Foods Reduces Local Stores’ Autonomy

In an effort to save $300 million a year
Posted February 17, 2016

To trim costs, Whole Foods Market Inc. (Austin) is making some changes to the amount of autonomy individual stores and managers have in areas such as deciding which products to carry in certain categories.

Previously, those decisions were left to the individual stores, but to streamline ordering and raise clout with vendors, now the company will decide at the headquarters level what to stock in stores in categories such as packaged foods, detergents and other nonperishables.

It has also introduced new software to streamline the task of scheduling workers and placing orders for in-store products. All of these efforts are part of a plan to save $300 million a year by September 2017, as shares have tumbled and sales have remained stagnant at best, reports The Denver Post.