Whole Foods to Launch a Less Expensive, Millennial-Friendly Chain

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
2 min read

Think shopping at Whole Foods is the ultimate luxury? The company is courting you as a customer -- especially if you’re a millennial.

On Wednesday, the organic grocer announced the launch of a yet-unnamed new store concept at a less expensive price point than current Whole Foods Markets. According to the company, the new chain will feature a “modern, streamlined design” and make innovative use of tech.

“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,” Walter Robb, co-chief executive officer of Whole Foods Market, said in a statement.

Related: 3 Brand Experience Strategies to Attract Millennials

Whole Foods announced the news yesterday when it revealed its disappointing second-quarter results. Same-store sales rose 3.6 percent during the quarter, down from 4.5 percent in the first quarter and lower than the 5.3 percent analysts were expecting. Total sales increased 10 percent to $3.65 billion, but also missed expectations. 

Whole Foods shares were down about 10 percent as of 11 a.m. ET today.

The new stores are scheduled to begin opening next year, with Whole Foods currently building a team to focus on the new concept and negotiating leases. After the concept launches, the company expects it will rapidly expand. More details will be revealed sometime this summer, prior to Labor Day.

This isn’t Whole Foods’ first attempt to upend its reputation as organic but extraordinarily pricey. In February, the company announced it had successfully increased sales by cutting prices on offerings shoppers consider staples.

Related: 3 Reasons Why Millennials May Be the Greatest Entrepreneurs

 

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Let us help you take the NEXT step. Whether you have one-time projects, recurring work, or part-time contractors, we can assemble the experts you need to grow your company.

Latest on Entrepreneur