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Whole Foods may lose its place as the main seller of organic foods in the USA.
The Seattle Times has reported that research notes by BMO Capital Markets indicates that Costco should overtake Whole Foods as the main U.S. retailer of organic foods.
Costco might be surpassing Whole Foods this year as the top seller of organic food in the US, The Seattle Times reports based on a research note by BMO Capital Markets.
According to the report Costco said in a recent earnings forecast that it is budgeting to sell $US4 billion in organic food for 2015, the company said on a recent earnings call. This would be way higher than the $US3.6 billion forecast in organic food sales estimated for Whole Foods annual sales.
According to chief financial officer, Richard Galanti, Costco’s sales of organic food products growth have more than doubled in the last three years
“It’s where we shine in terms of quality and value and I think that’s nothing but a positive for us going forward ” he said.
Major grocers such as Costco, Kroger, and Wal-Mart have expanding their organic product ranges in recent years making the sector increasingly more competitive, forcing early leaders such as Whole Foods to lower prices.