The Road To Restructuring
Sometimes the only way to meet internal and external demands is through fundamentally changing the business.
On June 10, 2015, natural and organic grocer Whole Foods Market introduced the official name for the newest member of its family. The name, 365 by Whole Foods Market, “celebrates our belief that fresh healthy foods can be readily available to more people in an affordable way every day…365 days a year,” Jeff Turnas, president of the new unit, wrote that day on Whole Story, the retailer’s blog. “It also tips our hat to our popular 365 Everyday Value brand, which our shoppers seek out for quality, transparency and great value—the same attributes to come with our smaller store format.”
CARE BEFORE TRANSFORMATION Change of some kind, of course, is always necessary in a retail environment. But retailers must take care before instituting truly transformative changes, experts stress.
“Change can be good, but radical change in a brand can be problematic,” cautions consultant Steven Platt. Case in point: J.C. Penney’s push to move away from sales and into an everyday low price format alienated the company’s core customers, Platt notes.
That’s why thoughtful planning before any restructuring is so important, Bishop says.