Whole Foods Considers Cheaper Options For ‘Millennial Shoppers’
Whole Foods is considering ways to provide cheaper options to “Millennial shoppers.” The popular grocery chain is renowned for offering a diverse selection of fresh and organic products. However, their prices are notoriously high.
In an attempt to appeal to a younger generation, Whole Foods executives are discussing the possibility of debuting a new chain — with cheaper prices.
As discussed on the company website, Whole Foods strives to “sell the highest quality natural and organic products available.” The grocery chain is also committed to supporting local growers and producers.
ABC News reports that Whole Foods remains a popular option among health conscious consumers. Unfortunately, the high prices may be deterring some shoppers.
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As consumers continue to demand healthier options, other grocery chains, including Wal-Mart, are offering fresh and organic products at reduced prices.
On Wednesday, Whole Foods announced a 10 percent loss in earnings during the second quarter. Although sales topped $3.65 billion, company officials want to increase their consumer base.
Founder and CEO John Mackey said the new stores will specifically appeal “to [the] millennial generation of about 90 million people.”
Although he did not reveal the name of Whole Foods’ cheaper chain, Mackey said the name will be announced before the end of the month. He also confirmed “the company is already signing property leases” and expects to open the new stores in 2016.
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When asked to describe the new chain, Mackey was guarded about revealing specific details. However, he said the concept was designed to appeal to the “Millennial generation.”
“So we think a streamlined hip, cool, technology-oriented store unlike any store anybody has ever seen before that has lower capital, lower cost, perhaps little labor cost and lower prices is going to be very, very attractive to that particular generation.”
Mackey said Whole Foods hopes to expand to 500 locations by 2017, with a long-term goal of 1,200 stores. The planned changes are projected to increase sales to $3.71 billion.
Whole Foods Market was founded in 1978 in Austin, Texas, by 25-year-old John Mackey and 21-year-old Renee Lawson (Hardy). Although the couple originally sold healthy foods out of their apartment, they eventually made enough money to open their first storefront.
There are currently 417 Whole Foods stores throughout Canada, the United Kingdom, and the United States. The company also offers online ordering and catering.
Whole Foods’ decision to consider cheaper options is a risk. However, it is expected to increase their customer base.
