Upmarket US grocery chain Whole Foods has reported pre-tax operating losses of US$18.4 million (£9.4 million) in the year to August 3 at its six UK stores.

The retailer, which specialises in organic and healthy foods, said it expects to break even by 2011. It has one Whole Foods store in Kensington and five smaller Fresh & Wild stores.

Whole Foods chairman and chief executive John Mackey said the company lost money initially when it launched in Canada too, but stores in that country are “very profitable” now.

“We believe the long-term growth potential in the UK is much greater than in Canada,” added Mackey. “We are carefully evaluating all aspects of our operations in the UK, with the intent to improve our results over the short term and deliver strong returns over the long term.”

Whole Foods’ global profits dropped 31 per cent to US$33.9 million (£17.3 million) for the 12 weeks to July 6. It blamed the US downturn for slowing sales growth Stateside.