http://www.antitrustreview.com/archives/1420 News and commentary about antitrust, economics, technology, policy Mon, 15 Feb 2010 15:26:52 -0600 http://wordpress.org/?v=2.8.4 hourly 1 http://www.antitrustreview.com/archives/1420/comment-page-1#comment-15371 MRA Mon, 04 Aug 2008 18:10:08 +0000 http://www.antitrustreview.com/archives/1420#comment-15371 <p>The problem is that the Court of Appeals, along with the FTC's economist, held that "core customers" constituted 68% (or the vast majority) of Whole Foods' customer base. Core customers were the majority of shoppers at the grocery retailer, and accounted for the vast majority of profits (by buying higher priced, greater margin perishable goods while marginal customers were more price conscious). The majority of customers at the stores then, would see greater prices and no competition which woudl result in an anticompetitive effect. This isn't 18 customers that would stick with Whole Foods, but 18 customers who wouldn't.</p> The problem is that the Court of Appeals, along with the FTC’s economist, held that “core customers” constituted 68% (or the vast majority) of Whole Foods’ customer base. Core customers were the majority of shoppers at the grocery retailer, and accounted for the vast majority of profits (by buying higher priced, greater margin perishable goods while marginal customers were more price conscious). The majority of customers at the stores then, would see greater prices and no competition which woudl result in an anticompetitive effect. This isn’t 18 customers that would stick with Whole Foods, but 18 customers who wouldn’t.

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