Whole Foods To Open New Stores With Value Prices

Shopper in front of Whole Foods market logo. (Photo courtesy Whole Foods)

If you ever shop at Whole Foods, you know that the chain is known for offering top-of-the-line products, from farm fresh produce to organic meats, dairy and other staples. Until now, those items have also come with a hefty price tag. But all of that is about to change.

In a competitive market where fresh, healthy foods are becoming increasingly available, Austin-based Whole Foods announced yesterday that it plans to introduce a brand new store concept later this year.

The new stores will be “unlike anything that currently exists in the marketplace,” Co-Chief Executive Officer Walter Robb said in a statement.

The new format will feature value prices as well as a modern, streamlined design, innovative technology, and a curated selection that targets millennial shoppers.

Currently, the company is negotiating leases as they build a team to focus on this new endeavor. The new stores will begin to open sometime next year if all goes according to plan, after which the company expects to rapidly expand even further.

“We believe the growth potential for this new and complementary brand to be as great as it is for our highly successful Whole Foods Market brand,” Robb said. The company will release more information about the new venture sometime this summer.

This announcement comes at the end of the 12-week second quarter that ended on April 12, 2015 and which produced a 10 percent increase in total sales for the company to a record $3.6 billion.

“Our results reflect another quarter of record sales and healthy returns on invested capital,” co-founder and Co-Chief Executive Officer John Mackey said.

“Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods,” Mackey added, stating that he believes the chain can triple the number of stores in the U.S. “We… see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace.”