Whole Foods announces name of new chain of smaller stores with lower prices
American foods supermarket chain Whole Foods announced that the name its new sister chain of lower-priced grocery stores will be '365 by Whole Foods Market'.
The company said that it though to use one of its house brands, '365' as the name in the hopes of that it will attract younger customers. According to said Jon Springer, retail editor for Supermarket News, the new chain might also be inspired by the success of companies such as Trader Joe's and Sprouts.
He said, "They've identified millennial shoppers, younger shoppers who are very particular about what they eat but also tough about what they can spend on food".
Co-CEO Walter Robb said that while 365 products will anchor the stores, the chain will have other items, including national brands.
Ever since the company announced plans for the chain in May, recent trademark filings by Whole Foods Markets Inc. prompted a guessing game that the stores might bear. It guessed names like Clever Egg, DailyShop, Greenlife, Small Batch or Swiftgoods.
The new chain will open next year and will be led by Jeff Turnas, who has worked at the Austin, Texas-based chain for 20 years. Whole Foods said that the stores will sell natural and organic products at everyday low prices.
The Whole Foods chain includes 421 stores that had sales of $16 billion last year. It is facing more competition, not only from smaller stores but also from Wal-Mart.
Whole Foods also launched a new website for the effort, 365WFM.com, on Thursday.