from USA Today
Whole Foods (WFM) is trying to change its reputation as a grocery with fresh food at high prices by opening a separate chain of lower-priced stores aimed at Millennials.
The new stores will cater to a younger generation of shoppers who are still interested in organic and natural foods but want a different shopping experience, executives said.
The company made the announcement Wednesday as part of its second-quarter earnings release. Whole Foods shares fell after the earnings announcement missed analyst expectations and continued to trend down Thursday, slumping nearly 10% to $43.07.
Whole Foods, known for its organic, natural food selection, clean stores and large displays of bright, fresh produce, has been losing traction recently as organic and fresh foods have become more popular at mainstream grocery chains.
Whole Foods is already negotiating leases for the new format, and the stores will start opening next year. But executives declined to give details about where and how many, saying more information would come by Labor Day.
“This marketplace continues to grow and explode, and I think we think by creating a second growth vehicle for our company, we can broaden the accessibility to fresh, healthy foods,”Co-CEO Walter Robb said on a call with news media.
Whole Foods has two locations in the Middle Tennessee area: one in Green Hills at 4021 Hillsboro Pike in the Hill Center and one in Williamson County at 1566 W McEwen Drive.
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