Whole Foods Market has unveiled plans to open next year a new value-oriented format that maintains the grocer's leading standards, but with lower price points and a curated selection.
Touting the new format as a "uniquely-branded store concept unlike anything that currently exists in the marketplace, Co-CEO Walter Robb said 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.”
The company said it's currently negotiating leases and expects a fairly rapid expansion following the initial launch.
“We believe the growth potential for this new and complementary brand to be as great as it is for our highly successful Whole Foods Market brand,” added Robb. “We look forward to sharing more details about this exciting new venture sometime before Labor Day.”
In tandem with the unveiling of its new concept, Whole Foods also reported earnings for its second quarter and year-to-date ended April 12, 2015.
Total Q2 net sales for the grocer increased 10 percent to $3.6 billion, buoyed by a 3.6 percent increase in comparable-store sales. Earnings came in at $355 million, or 9.7 percent of sales, with diluted earnings per share at $0.44, an increase of 14 percent over last year.
The grocer posted year-to-date net sales of $8.3 billion, an increase of 10 percent, with comps increasing 4.2 percent. Earnings for the year so far hit $751 million, or 9 percent of sales, and $0.90 per share, a 12 percent increase compared to the year-ago.
“Our results reflect another quarter of record sales and healthy returns on invested capital,” said John Mackey, co-founder and co-CEO. “Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection, and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States."
Austin-based Whole Foods Market operates 417 stores nationwide.