The Fresh Market Store Closings to Benefit Whole Foods (TFM) (WFM)

Supermarket News reported that The Fresh Market (NYSE: TFM) plans to close 13 stores out of a base of roughly 180, Oppenheimer analyst Rupesh Parikh highlighted. Based on the analyst's proximity study comparing TFM and Whole Foods Market (NASDAQ: WFM) locations, eight of TFM's 13 store closings have a competing WFM within five miles and five have a competing WFM within three miles. The 13 stores will close effective May 18th and by state are as follows: eight in Texas, two in Iowa, two in Kansas, and one in Missouri.

Both companies have a heavy focus on the perishables category and WFM in recent years has broadened its offering to include more conventional options in select perishable categories. This should allow WFM to capture some share over time.

Supermarket News reported that The Fresh Market plans to close the nearest WFM location. Both WFM and TFM store formats have a large focus on perishables. total perishables also represented two-thirds of the company's FY15 (Sept. 2015) sales with prepared foods and bakery accounting for 19%.

The firm has an Outperform rating and $38 PT on WFM

For an analyst ratings summary and ratings history on Whole Foods Market click here. For more ratings news on Whole Foods Market click here.

Shares of Whole Foods Market closed at $30.28 yesterday.

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