The Dallas Morning News reports that Whole Foods has identified six more markets - in Ohio, Indiana, Georgia, and California - where it plans to open its new "365 by Whole Foods" format that is designed to be lower priced, higher tech, and more accessible and attractive to millennials, as well as being more competitive with the likes of Trader Joe's.
The initial thirteen 365 stores now will be located in Los Angeles, Santa Monica, Portland (Oregon), Houston, Bellevue (Washington), Cedar Park (near Austin, Texas), Cincinnati, San Francisco, Evergreen Park (Illinois), Gainesville (Florida), and Concord, Claremont and Los Alamitos (all in California). All these units are scheduled to be opened before the end of 2017.
Whole Foods made the announcement as it released Q2 numbers that showed same-store sales that were down three percent - the third straight quarter of decline - on revenue that grew 1.3% to $3.70 billion and net income that dropped 10 percent to $142 million.
The initial thirteen 365 stores now will be located in Los Angeles, Santa Monica, Portland (Oregon), Houston, Bellevue (Washington), Cedar Park (near Austin, Texas), Cincinnati, San Francisco, Evergreen Park (Illinois), Gainesville (Florida), and Concord, Claremont and Los Alamitos (all in California). All these units are scheduled to be opened before the end of 2017.
Whole Foods made the announcement as it released Q2 numbers that showed same-store sales that were down three percent - the third straight quarter of decline - on revenue that grew 1.3% to $3.70 billion and net income that dropped 10 percent to $142 million.
- KC's View:
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I think it is important to stipulate right now that the 365 format is not going to change Whole Foods' business prospects overnight. It is going to take time and money to gain a foothold and establish traction with the consumer. The question in my mind is whether the concept can establish differentiated advantages for the company while still helping build the overall brand. It'll be a tough trick to pull off.
