Whole Foods Market (WFM), the upscale grocery store sometimes derided as ‘Whole Paycheck’ for its prices, is planning to launch a new chain of lower-priced stores for people who can’t otherwise afford to buy its premium and organic food. He said the company would announce more details by early September. The grocer plans to start opening its first stores in the new format next year, with a quick expansion to follow. The grocer reported same-store sales rose 3.6% in the 12 weeks ended April 12, below Wall Street expectations for 5.3% growth, according to Consensus Metrix, and a fraction of the double-digit growth in recent years that had made Whole Foods a Wall Street darling. The company has been losing market share to aggressive rivals like specialty retailers Sprouts Farmers Market and Fresh Market, as well as giants like Kroger (KR).
– Good news, college students: Soon you, too, may be able to afford groceries at Whole Foods. The chain will soon start adding lower-priced stores meant to appeal to people in their 20s and 30s (and anyone else who doesn't want to pony up), co-CEO Walter Robb announced yesterday. Eventually, there could be as many lower-priced stores—no name has yet been announced—as there are Whole Foods stores, he said. What exactly will they offer? A "curated" selection of items and a simpler store design, Fortune reports. "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," Robb said in a statement. Co-CEO John Mackey added that the new stores will be "hip, cool, and technology-oriented," but will cost less to operate, CNNMoney reports. The first stores will open next year, and more details will be out by September of this year.