03Nov16 Walter Robb to step down as co-CEO of Whole Foods

Robb's departure from Whole Foods comes at pivotal time for Austin-based grocer:

The looming departure of Walter Robb as co-CEO of Whole Foods Market Inc. will likely intensify pressure on John Mackey, who on Jan. 1 will become the lone chief executive of the company he founded more than three decades ago.

Robb is set to receive a $10 million lump payment from Whole Foods (Nasdaq: WFM) as part of a non-compete agreement plus a 30 percent lifetime discount at its stores, according to a regulatory filing. Whole Foods will also pay to relocate Robb's personal items from his Austin office to California and cover his health insurance premiums for three years. Robb will remain with the company as a board member and adviser.

During an earnings call with analysts Wednesday, Robb said he is stepping down because a more "streamlined structure" will benefit the company — go here to read the call transcript. According to a Bloomberg report, his departure will end six years of two CEOs atop Whole Foods — an arrangement that can be trying during tough financial times.

Whole Foods has faced increased competition from big-box chains such as Kroger Co. and Wal-Mart Stores Inc. as well as newer entries in the organic and natural foods sector, such as Trader Joe's. It has rolled out a loyalty program, cut prices and ventured into new pursuits such as a food truck to try to reverse its sales slide.

The company has also launched a new line of lower-priced stores called 365 by Whole Foods Market (365 by Whole Foods President Jeff Turnas is the next ABJ Face 2 Face guest). In the earnings call, executives said the company's planned 365 location in Cedar Park is expected to open in spring 2017.

Those moves appear to fall in line with the company's strategic plan to downsize its workforce and cut $300 million in expenses by 2017.

Whole Foods reported mixed fourth-quarter financial results on Wednesday, including the fifth-straight quarter of declining comparable-store sales. That meant comparable-store sales were down 2.5 percent for the company's 2016 fiscal year, the first annual decline since 2009, according to the Wall Street Journal.

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9 replies (most recent on top)

David Lannon needs to go next. His Lowest Common Denominator ideas have ruined the company.and the stores.

Now the shareholders are ticked off as hell over this. Bloomberg and TheStreet.com are reporting that at least one major shareholder has started a movement to totally clean house, fire the board, and fire all the execs because they're F$#@@!ing incompetent and are robbing the company blind! FIRE ALL OF THEM NOW!

it's almost off my resume. i'm at my second job since I left so it's at least towards the bottom of the page now. it's embarrassing having retail on there (and for 5 years), but it'll be gone in 2 years when i move on from where i'm at now for something better.

It's pretty embarrassing to tell people you work for Whole Foods. When I leave, I plan on taking it off my resume.

Every store is different, but I worked at Target for 6 years. I saw all of the changes that WF is doing. Target is just as bad. Worse if you consider that they start at less than $11. Everyone seems to think WF is better than Target and Target is better than WM, but they're all the same. At least it's less embarrassing to say you work at WF.

Go work for target. That's the move I made, there's real team member happiness there believe it or not

Disgusting. Im quitting asap. This was the last straw

That prick is getting fired wayyyy too late. And it's criminal to wait till the end of the year for him to exit. The fact that he gets $10 million should tell us and investors all they need to know. Until Mackey is gone and the Board is replaced, the rot continues. Absolutely shameful and disgusting.

I could throw up.

This fool played an enormous part in destroying Whole Foods, and he gets to walk away with 10 million dollars plus all the other perks tied to his golden parachute. All while so many people who toiled away to build the company into what it was, got and continue to get jack squat (if they still have a job). It's just absolutely jaw droppingly unbelievable. Though I know it's par for the course once you ascend the ladder to this level of corporate untouchability in big business. Conscious capitalism, right friends? Even when the company, the employees and the shareholders lose, you win!

Walter Robb, I hope your guilty conscience gnaws your guts apart as you sleep in your mansion by the sea in California. That's some filthy dirty money you're walking away with, and you deserve every bit of organic, non GMO karma that's coming your way. I'm ringing the shame bell for you, guy.

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03Nov16 Walter Robb to step down as co-CEO of Whole Foods

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