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Whole Foods announced yesterday that it will open its second "365 by Whole Foods" store in Lake Oswego, Oregon, just south of Portland, on July 14.

The 32,000 square foot store, the company said, "will host two new Friends of 365 partners that both originate from Portland, Oregon: Next Level Burger, a plant-based take on the classic American burger joint and Canteen, a fresh and healthy café and juice bar. Both ‘friends’ will establish shops within the new 365 by Whole Foods Market location and will feature specially curated menus that will further enhance the store experience."

By creating a center island and bar in the store that will offer foodservice options, the company said that it hopes 365 "will become a Portland-area destination for healthy, fast casual eating as well as convenient grocery shopping.”

The first 365 store is scheduled to open in the Silver Lake neighborhood of Los Angeles late next month., with a third location scheduled to open in Bellevue, Washington, later this fall. Ten additional stores on slated to open next year.
KC's View:
My understanding is that Whole Foods picked the three locations where it is opening 365 stores in 2016 because of immediate real estate availability, and that next year's store still-to-be-announced locations were chosen more strategically to appeal to urban millennials.

If accurate, this would feed into the skepticism that some of us have about 365 - that it could be a hasty response to a persistent competitive problem. Whole Foods wants to create a store that appeals more to millennials and that feature slower prices, but there is a feeling out there - including some folks within the company - that in its desire to be more like Trader Joe's, Whole Foods is betraying the values and strengths that it traditionally has brought to the marketplace.

Now, to be fair, I'm always arguing here that it is important to find ways to disrupt your own business before competitors find a way to do it for you. And that's exactly what 365 could be, and it could work great. But we'll only know that once they start opening these things.