For “The Business Model” Slide:
· The Fresh Markets financial results show a tangible manifestation (outward or perceptible indication) of a retail strategy that has worked over the past several years to appeal to a shopper looking for a specialty experience and specialty products.
· Although The Fresh Market is often compared to Whole Foods, this comparison is only valid based upon the customer demographic shopping within the store. o Whole Foods is a more mature retailer that has achieved higher rates of saturation (the level beyond which demand for a product/service is not expected to increase) in its markets. o Both retailers are in a strong position.
For the “Strategy” Slide:
· The company has taken the following actions aimed at improving profitability & future growth prospects for the Company: o The company has announced that it will close 4 stores in FY 2014; 3 in Sacramento, CA and one in Houston, TX.
· Deployed new analytics & forecasting methods designed to improve site selection process & enhance accuracy of sales forecasting. o Company’s real estate plan will place greater emphasis on existing market expansion; while slowing the pace of openings in frontier markets in the near- to medium-term.
· The company has identified a # of opportunities to better manage costs & improve efficiencies. o These savings should eliminate redundant or overlapping general & administration expenses, reduce non-merchandise procurement spending & keep fiscal 2014 pre-opening expenses at the same level as fiscal 2013.
For the “Core Competencies” Slide:
· There are 8 key competencies that The Fresh Market utilizes. o Building and Maintaining Relationships § Developing trusting relationships inside & outside company o Directing & Developing People § Manages work flow processes & improves employee capability & engagement o Confronting & Managing Conflict § Promptly & effectively addresses performance concerns, interpersonal conflict b/w employees or w/ others, & customer concerns. o Being Organized § Implements processes or routines for accomplishing work, ensures employees have the resources & info needed to do jobs, & orders & prioritizes tasks at hand o Action Oriented § Takes action on & ownership for decisions, engages in business & urgently responds to critical issues, maximizes productivity & persists amidst unexpected challenges. o Self-Management § Takes initiative to solicit performance feedback from others & intentionally develops opportunity areas, conducts oneself in a professional manner at all times. o Decision Quality § Identifies core issues when analyzing concerns, draws accurate conclusions based on data, & anticipates potential concerns & consequences. o Technical Skill § TFM places strong focus on technical skills & abilities.
For the “ROIC & WACC” slide:
· The industry average ROIC is 10.75%.
· Whole Foods most recent ROIC is 12.57%. Therefore they are also adding value because their WACC is 8.75% which equals (12.57-8.75) 3.82%.
· TFM is actually adding value at a better pace than WFM because its value added is higher than WFM. o Both companies have a competitive advantage
· Kroger’s ROIC is 9.53% and their WACC is 8.38% which means that its value equals (9.53-8.38) 1.15%.
· The Fresh Market is placed in Quadrant 2 because while they do have a competitive advantage their strategy appears to not be working. Their strategy has worked in the past but recently they have seen a decline in ROIC indicating that their strategy may not be working.

Random points v There are 3 reasons shoppers go to The Fresh Market. (said by Craig Carlock, CEO) o Food quality with its focus on “health, fresh, local, regional” o Superior customer service o Neighbor grocery atmosphere v Whole foods Market appears to be more differentiated than The Fresh Market which is representative in the stores (WFM) higher prices. The Fresh Market has a more differentiated strategy than Kroger but slightly less than Whole Foods. While TFM charges premium prices their prices are cheaper than WFM but less than that of Kroger. Kroger has more of a “low cost” strategy than either of these two stores. TFM and WFM maintain a differentiated strategy.