Whole Foods Market has announced that starting 2016 a new Whole Food Market value-store chain will feature on the map.
The new value-oriented stores will be known as 365 by Whole Foods Market and will be representative for the company’s outreach in the more affordable prices market. It is not to be understood that quality standards will be slashed. Simply that building costs or space renting have been carefully weighed to not burden fresh produce prices, but help in reducing them.
The news that the 365 store-chain will be opened in 2016 comes as a follow-up to the announcement already made in May by Whole Food Market officials. Against the background of an increasing number of competitors that are cutting the market into pie slices in the fresh food sector, Whole Foods Market reported that same-store sales were constantly decreasing.
Acknowledged as the originator of the fresh, organic produce retailer concept, Whole Foods has observed how since 2012 a large number of its customers turned towards Wal-Mart’s in-house brand of organic products or Kroger’s Simple Truth organic line.
Action had to be taken. Therefore, Whole Foods Market is now launching a new challenge on the market, according CEO Walter Robb:
“This is a fundamental strategic decision of the company to say at this fork in the road, as we read the tea leaves and the marketplace, we’re going to go attack. For the last couple of years, we’ve been the hunted. This turns us back into the hunter.”
Daring visions and daring strategies. The 365 value-store chain is set to open its doors in 2016. The exact number of locations is not known at the moment.
What is known is that the new chain is aimed specifically at those customers for whom price is a sensitive matter and for whom Whole Foods flagship brand is rather expensive. A great win-win deal for Whole Foods which indicates that no quality standards will be slashed, as well as no race to the bottom will be pursued for simple market share increase.
The flagship brand stays in place and the new addition, 365 store-chain brings a competitive edge to the market as an efficient response to aggressive tactics from competitors.
The pricing strategy that 365 store chain is created around is made possible via cheaper building materials for the new locations, as well as reduced surfaces and rental price tags. Naturally, the number of products featuring in 365’s shelves will be considerably smaller, but will pledge the same quality offered by Whole Foods in the flagship stores.
Walter Robb maintained that this is the right time for the bold move as the market is asking for a reorientation towards high quality products at more affordable prices.
Image Source: wholefoodsmarket.com