Austin, Texas-based Whole Foods will open a new spin-off chain that will stock more affordable products in hopes to attract a younger and cost-conscious clientele.
In a statement by Whole Foods, the natural-foods grocer promises the new chain will be “unlike anything that currently exists in the marketplace.”
“Whole Foods has been losing traction recently as organic and fresh foods have become more popular at mainstream grocery chains. The company also early on earned the nickname ‘Whole Paycheck’ for how expensive it can be to shop there. Whole Foods is already negotiating leases for the new format and the stores will start opening next year. But executives declined to give details about where and how many, saying more information would come by Labor Day.
Whole Foods new concept came about in an effort to stay competitive with chains, such as Target, Wal-Mart, Trader Joe’s and other food market chains that have expanded into organic and healthy foods market.
“Offering our industry leading standards at value prices, this new format will feature a modern, streamlined design, innovative technology and a curated selection,” said Walter Robb, Whole Foods co-CEO. “It will deliver a convenient, transparent, and values-oriented experience geared toward millennial shoppers, while appealing to anyone looking for high-quality fresh food at great prices.”
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