NEW YORK—Whole Foods says it will name its new chain of smaller
stores with lower prices after its "365 Everyday Value" house
brand.
Co-CEO Walter Robb said that the chain will be named "365 by
Whole Foods Market," a nod to the brand already sold by the grocery
chain.
He said that while 365 products will anchor the stores, the
chain will also have other items, including national brands.
Since announcing plans for the chain in May, recent trademark
filings by Whole Foods Markets Inc. had prompted a guessing game
that the stores might bear names like Clever Egg, DailyShop,
Greenlife, Small Batch or Swiftgoods.
"Those were all decoys," Mr. Robb said in an interview, before
quickly adding that his claim could also be a decoy to divert
people about other plans.
The new chain, which is slated to begin opening next year, comes
as Whole Foods seeks to differentiate itself amid intensifying
competition. The company, which has more than 400 Whole Foods
stores, has seen its sales growth slow as organic and natural
products have become more widely available at mainstream
supermarket chains and big-box retailers.
The new chain may also be inspired by the success of companies
such as Trader Joe's and Sprouts, which also focus on value and
store-brand products, said Jon Springer, retail editor for the
trade publication Supermarket News.
"They've identified millennial shoppers, younger shoppers who
are very particular about what they eat, but also tough about what
they can spend on food," he said.
Executives in the supermarket and retail industry are also
trying to adapt to the changing ways people are shopping. Wal-Mart
Stores Inc., for instance, has been opening "Neighborhood Market"
stores that are smaller than its supercenters aimed at shoppers who
want to get in and out quickly.
A similar philosophy seems to be behind the plan by Whole Foods.
In its initial announcement, Whole Foods had said that the new
chain would be "geared toward millennials." But Robb said that
while 365 is inspired by younger generations, it is intended to
appeal to anyone who wants a quick, convenient way to shop.
Jeff Turnas, a Whole Foods veteran who was named president of
the 365 chain, said he envisions people stopping in at 365 stores
during the week when they want to get in and out of stores, with
the regular Whole Foods stores being destinations for bigger
shopping trips.
Mr. Turnas, who previously headed the U.K. business for Whole
Foods, also noted that a small Whole Foods location in London has
an open-kitchen feel in its prepared food section. Mr. Turnas said
something similar might pop up in the 365 stores as well.
Whole Foods, based in Austin, Texas, says it plans to open
between five and 10 of the 365 stores around the country next year,
and that it sees potential for the chain to eventually have as big
a footprint as its namesake chain.
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