Whole Foods Eyes Smaller Format Stores for Urban Growth

Grocery store chain plans to expand network with 1,000 new stores.

May 05, 2014

AUSTIN, Texas – Whole Foods is focusing on a smaller store as the means for future growth, Forbes reports. The grocery store chain will expand its network of locations by opening more than 1,000 “smaller and urban” units in areas such as Brooklyn and Boise, Idaho.

Whole Foods considers such a move as fulfilling its mission to measure success “by customer satisfaction, team member happiness and excellence, return on capital investment, improvement in the state of the environment and local and larger community support,” as its own Declaration of Independence reports. The chain sees such expansion as making good on its promise to become more available to more people.

The real issue for Whole Foods is how it will integrate into the neighborhood while balancing the need to stay true to its mission and brand. “This [move into lower income areas] is a bit of a stretch for us, but it’s the next stretch. And it’s one that makes sense … as long as we do it respectfully and inclusively within a community,” said Walter Robb, co-CEO of Whole Foods.

The company will keep an eye on stocking lower-priced items, with a focus on its private-label 365 brand, and accepting food stamps. The company also will take the time to figure out what kind of grocery store will be good for the location before a single shovelful of dirt is lifted. In addition, Whole Foods will support the local community with its outreach programs.

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