Wal-Mart Stores, Inc. (WMT)’s Fresh-Produce Initiative: Who Loses?

Then there’s The Fresh Market Inc (NASDAQ:TFM), whose stock popped 8% last Wednesday after the company grew first-quarter revenue by almost 13% year over year on decent same-store sales growth of 3%. Additionally, The Fresh Market boosted earnings by 14.6% from the year-ago period and, though The Fresh Market’s balance sheet isn’t quite as pristine, with $11 million in cash and $15 million in debt, keep in mind it did decrease its debt levels by more than 63% last year thanks in part to healthy cash flow from operations.

Perhaps most important to this conversation, however, is the fact that Whole Foods and The Fresh Market have both long dedicated a disproportionate amount of their time and energy to consistently ensuring the highest-quality food is carried in their stores. In addition, both companies actively support their communities while providing a culture and atmosphere customers and employees alike actually want to be a part of.

In short, and in keeping with fellow Fool Isaac Pino’s thoughts on conscious capitalism last month, companies like these tend to perform well when they sincerely focus on improving people’s lives through their businesses. As a result, though Whole Foods and The Fresh Market admittedly trade at a relative premium to their larger peers, I’m betting these two specialty grocers will prove immune to Wal-Mart’s market-grabbing ways.

The article Wal-Mart’s Fresh-Produce Initiative: Who Loses? originally appeared on Fool.com and is written by Steve Symington.

Fool contributor Steve Symington owns shares of Whole Foods Market (NASDAQ:WFM). The Motley Fool recommends The Fresh Market and Whole Foods Market. The Motley Fool owns shares of Whole Foods Market.

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