Why The Fresh Market Inc (TFM) Must Grow Faster

But more recently, investors seem to have realized that what’s good news for Whole Foods is also good news for The Fresh Market Inc (NASDAQ:TFM). When Whole Foods reported favorable earnings earlier this month, The Fresh Market also gained ground, as it indicated a general willingness among customers to spend more on premium-quality food. In particular, as The Fresh Market gears up to challenge Whole Foods in the key markets of California and Texas, the grocer stands to get a lot of new growth opportunities. If the company can focus more on winning business from The Kroger Co. (NYSE:KR), Safeway Inc. (NYSE:SWY) , and other traditional grocers rather than on trying to crush Whole Foods, then The Fresh Market Inc (NASDAQ:TFM) should be able to find its niche and keep its prospects moving in the right direction. Even as Safeway Inc. (NYSE:SWY) and The Kroger Co. (NYSE:KR) have tried to embrace organics and other healthy products, they can’t match The Fresh Market’s margins, and that’s a key advantage The Fresh Market should maintain for a while.

In The Fresh Market Inc (NASDAQ:TFM)’s report, look for the company to follow up on its guidance from last quarter. If the grocer can’t report improving conditions among its customer base, then it could have further problems keeping its share price up.

The article Why The Fresh Market Must Grow Faster originally appeared on Fool.com.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool recommends The Fresh Market and Whole Foods Market, Inc. (NASDAQ:WFM) and owns shares of Whole Foods Market, Inc. (NASDAQ:WFM).

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