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America Latest News Supermarkets

Fairway in deep trouble as shares selling for 70 cents



New York City specialty supermarket chain Fairway Group Holdings Corp now sees its shares selling at 70 cents per share, costing less than a pack of natural gum. Two years after going public, the organization is down 94 percent from its April 2013 first sale of stock value and is in peril of being delisted from the Nasdaq for trading below $1 for 30 continuous days.

Fairway, even with its profound injuries, is an extreme example of a pattern that is harming contenders, for example, Whole Foods Market Inc., Sprouts Farmer’s Market Inc (SFM.O) and Natural Grocers By Vitamin Cottage Inc (NGVC.N) also.

As mid income outlets like Costco Wholesale Corp (COST.O), Wal Mart Stores Inc (WMT.N) and Target Corp (TGT.N) extend their organic products, the organizations that spearheaded the pattern are by and large abandoned. The quantity of organic things now accessible in conventional markets is up 35 percent and 50 percent in the course of the most recent year, as per assessments from investment bank Piper Jaffray.

By and large, the U.S. food market ought to top $45 billion in 2015, a compound yearly grwoth rate of 14 percent from 2013, as indicated by TechSci Research. Grocery store chain Kroger Co– whose shares are up 31 percent this year – now says that organic food represent 10 percent of its $108 billion in yearly income, making it the second-biggest dealer of organic food behind Whole Foods. Whole Foods, in the mean time, is down 34 percent for the year to date, while Sprouts Farmer’s Market is down 25 percent. To contend with that pattern, Whole Foods, Fairway and other merchants will either need to cut costs – as Fairway has done – or spotlight on higher-margin prepared foods.



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