Whole Foods Plans to Open Smaller, More Affordable Stores

‘Whole Paycheck’ grocer is hoping to attract younger shoppers with smaller format stores and lower prices.

May 11, 2015

MCLEAN, Va. – Whole Foods announced last week that it is planning to open new stores that will “cater to a younger generation of shoppers who are still interested in organic and natural foods but want a different shopping experience,” writes USA Today.

The company made the announcement as part of its second-quarter earnings release. The grocery chain, known for its organic, natural food selection and fresh produce, has been losing traction recently as organic and fresh foods are becoming more available and affordable at mainstream grocery chains.

Nicknamed "Whole Paycheck" for how expensive it can be to shop at Whole Foods, USA Today writes that the new store format will help broaden the grocer’s appeal and diversify its brand, while attracting younger shoppers who may not be able to afford the high prices of higher-end foods, according to Neil Saunders, CEO of retail consultancy Conlumino. “[Whole Foods] still has a problem on price," he told the newspaper, and "[Millennials] just don't have the disposable income to make that their destination of choice for grocery shopping."

Whole Foods Co-CEO Walter Robb said the stores will have "modern, streamlined design, innovative technology and a curated selection." And while they'll be focused on Millennials, the stores will appeal "to anyone looking for high-quality fresh food at great prices."

Whole Foods is already negotiating leases for the new format, and the stores will start opening next year. The grocer is following other large retailers, stocking fewer products with a heavy focus on fresh foods and snacks.

"This marketplace continues to grow and explode, and I think we think by creating a second growth vehicle for our company, we can broaden the accessibility to fresh, healthy foods," said Robb. 

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