Walter Robb on Whole Foods' Recession Lessons

"If you want to be healthy, you're going to have to cook"Photograph by Thomas Prior for Bloomberg Businessweek

Robb takes Leslie Patton and Bryan Gruley on a tour of his Austin (Tex.) storeBloomberg Terminal, with its three types of kale and devoted foodie clientele.

What did you learn from the recent recession about selling groceries?
It was a lot of humble pie, because our sales experienced a drop that I have never seen in 32 years of retail. Customers left us in droves. We also learned that there were some very loyal customers who loved Whole Foods, people who said, “I like what you stand for. I like coming here. I like this experience.” That was very affirming. I think the realization was that we’ve got some customers, and we need to make sure we know who they are. So instead of chasing every customer out there, we started doing customer discussion groups. We were growing for growth’s sake, which is not a good strategy. We were chasing the rainbow. We cut the growth in half overnight and said, “All right, slow down. Let’s make sure we’re doing this better and more thoroughly and more thoughtfully.” This company is a mission-based company. This company started to change the world by bringing healthier food to the world. It’s not about the money, it’s about the impact, and this company is back on track as a result of those experiences.