Whole Foods provided some details last month about their 365 small-store concept, describing it as a "quality-meets-value" interpretation of its traditional store "in an environment that's fun and convenient for shoppers."
A 30,000 square foot store, set to open in Los Angeles later this month, will feature a self-service tea bar, a vegan fast-casual restaurant and online ordering through Instacart.
No word on a tattoo parlor, which Whole Foods said could be in certain 365 stores earlier this year. The company currently has plans for at least 13 365 stores.
Showing posts with label 365 by Whole Foods. Show all posts
Showing posts with label 365 by Whole Foods. Show all posts
Thursday, May 5, 2016
Thursday, February 25, 2016
Whole Foods getting flak from analysts over new 365 format
Whole Foods Co-CEO Walter Robb was widely criticized by analysts earlier this month when he outlined strategies for the rollout of the company's smaller "365 by Whole Foods Market" format. According to Whole Foods' website, the new stores, slated to begin opening this year, will offer convenience and everyday low prices on natural and organic products.
"Whole Foods is tilting its growth towards an unproven, discount format that appears to be directly aimed at a strong competitor, Trader Joe's," said Wolfe Research Managing Director Scott Mushkin. "Trader Joe's has been in the business for roughly a half century, does the discount treasure-hunt format exceptionally well, and is private, meaning it doesn't have to answer to public equity investors each quarter."
Mushkin added that Whole Foods' decision to reduce store labor to fund price investments has already had a negative impact on store conditions, and was critical of the company's decision to maintain earnings by buying back stock.
Many analysts probably also don't like Whole Foods' new program called "Friends of 365," where approved suppliers and vendors can set up shop in the 365 stores. The new chain's website says shoppers may see businesses such as record shops and tattoo parlors inside 365 stores in order to appeal to younger customers.
During a conference call with investors, Whole Foods said they have 13 leases signed for the new format, with the first 365 stores set to open in California, Oregon and Washington.
"Whole Foods is tilting its growth towards an unproven, discount format that appears to be directly aimed at a strong competitor, Trader Joe's," said Wolfe Research Managing Director Scott Mushkin. "Trader Joe's has been in the business for roughly a half century, does the discount treasure-hunt format exceptionally well, and is private, meaning it doesn't have to answer to public equity investors each quarter."
Mushkin added that Whole Foods' decision to reduce store labor to fund price investments has already had a negative impact on store conditions, and was critical of the company's decision to maintain earnings by buying back stock.
Many analysts probably also don't like Whole Foods' new program called "Friends of 365," where approved suppliers and vendors can set up shop in the 365 stores. The new chain's website says shoppers may see businesses such as record shops and tattoo parlors inside 365 stores in order to appeal to younger customers.
During a conference call with investors, Whole Foods said they have 13 leases signed for the new format, with the first 365 stores set to open in California, Oregon and Washington.
Thursday, June 11, 2015
Whole Foods to open "365 by Whole Foods Market" stores
Whole Foods has been talking about its new, smaller format since May, and rumors have been swirling about what they will call the chain. It was reported today that Co-CEO Walter Robb told the Associated Press the name will be "365 by Whole Foods Market," which reflects the name of their house brand, "365 Everyday Value."
According to Robb, the house brand may dominate the shelves, but they will also carry other items, including national brands. He explained that the new format is inspired by younger generations and intended to appeal to those who want a quick, convenient way to shop.
Jeff Turnas, newly appointed president of the 365 chain, said he envisions customers visiting the 365 stores during the week when they want a quick shopping experience, and going to Whole Foods when they have time for bigger shopping trips.
Whole Foods plans to open five to 10 of the 365 stores around the country next year. Ultimately they believe the store count will match Whole Foods', which currently has more than 400 locations.
According to Robb, the house brand may dominate the shelves, but they will also carry other items, including national brands. He explained that the new format is inspired by younger generations and intended to appeal to those who want a quick, convenient way to shop.
Jeff Turnas, newly appointed president of the 365 chain, said he envisions customers visiting the 365 stores during the week when they want a quick shopping experience, and going to Whole Foods when they have time for bigger shopping trips.
Whole Foods plans to open five to 10 of the 365 stores around the country next year. Ultimately they believe the store count will match Whole Foods', which currently has more than 400 locations.
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