Road to recovery…
Coming back to Fresh Market’s performance, the company plans to undertake a number of strategies to improve its performance. Firstly, the grocer plans to open a total of 21 to 22 new stores during 2013, and it will accelerate store openings in the next two quarters .
Moreover, The Fresh Market Inc (NASDAQ:TFM) plans to accelerate its promotions for the peak holiday season. The company has also been investing in new products in order to attract more customers.
Fresh Market has a number of moves in its bag, and demand for organic and natural foods is increasing, but the company is not performing at par with its peers. Both Whole Foods Market, Inc. (NASDAQ:WFM) and Sprouts Farmer’s Market have been performing better, with higher same store sales growth.
Moreover, Fresh Market has lowered its earnings outlook for the year to $1.50 to $1.55 per share from $1.51 to $1.58 per share in the wake of higher costs associated with its store expansion plans. I would suggest not putting your money in this company–if you want to invest in this industry, other players might provide better returns.
The article Is The Fresh Market Fresh Enough For An Investment? originally appeared on Fool.com and is written by Pratik Thacker.
Pratik Thacker has no position in any stocks mentioned. The Motley Fool recommends The Fresh Market and Whole Foods Market. The Motley Fool owns shares of Whole Foods Market.
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