Wild Oats
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.

In the “For this, we need Republicans?” file, place the decision this week by the Federal Trade Commission to seek a temporary restraining order and preliminary injunction in federal district court to block the proposed merger of Whole Foods Market, Inc. with Wild Oats Markets, Inc. The $670 million deal, the FTC said in a press release, “will mean higher prices, reduced quality, and fewer choices for consumers.” The commission warned that “After the merger, Whole Foods likely would be able to raise prices unilaterally, to the detriment of customers of premium natural and organic supermarkets.”
The press releases went on to assert that the Commission found that “premium natural and organic supermarkets, such as Whole Foods and Wild Oats, are differentiated from conventional retail supermarkets in several critical respects. These include the breadth and quality of their perishables — produce, meats, fish, bakery items, and prepared foods — and the wide array of natural and organic products and services and amenities they offer. In addition, premium natural and organic supermarkets seek a different customer than do traditional grocery stores. Whole Foods’ and Wild Oats’ customers are buying something more than just the food product — they are seeking a shopping ‘experience,’ where environment can matter as much as price.”
What a waste of federal resources. If the customers are shopping for an “experience” rather than price, why block the deal on the grounds that the result might be higher prices? And what’s with the idea that customers need to be protected by the government from a monopoly on a shopping “experience” rather than an actual product? The Clayton antitrust act under which the FTC is acting regulates “commerce,” not “experience.”
More broadly, with everyone from Wal-Mart to Fairway to Key Food to CTown stocking a stepped up selection of organic food these days, the idea that the Whole Food-Wild Oats combine would have monopoly pricing power is just unreasonable. Here in New York alone, a city with plenty of Whole Foods markets, shoppers seeking health food can patronize, in addition to the aforementioned supermarkets, Trader Joe’s in Union Square, the Park Slope Food Coop, Bell Bates Natural Foods in TriBeCa, four Garden of Eden gourmet markets, five Gourmet Garage locations, and about 40 greenmarkets including the Union Square flagship. No doubt that quick list misses many other outlets. Not to mention Stew Leonard’s in Yonkers and Norwalk, Conn.
Granted, not every city and town in America has the shopping opportunities New York does, but plenty of suburban supermarkets — say, Wegman’s, or Ralphs, or a Super Stop & Shop — provide an “experience” that consumers could well decide, without the help of the Federal Trade Commission, rivals Whole Foods. In those places where there are no rivals, the entry barriers aren’t particularly high. Whole Foods bought the Bread and Circus chain a few years back without any apparent harm to consumers. In short, the FTC should leave such regulatory overreach to Democratic administrations.