Whole Foods Market announced Monday that it is debuting a new small-format store concept aimed at providing urban neighborhoods with a convenient shopping option.
Whole Foods Market, founded in 1980, is a grocery chain that specializes in natural and organic foods. The company is known for its commitment to providing high-quality, minimally processed, and sustainably sourced products. In 2017, Amazon acquired Whole Foods, prompting some changes in pricing and promotions to integrate new technology and services into the Whole Foods model. Before Amazon purchased Whole Foods Market, they launched the 365 concept in 2015, which aimed to provide a more affordable, more streamlined shopping experience while still sticking to quality and freshness. The concept was designed to appeal to a broader customer base, but it didn’t last long. Many people expected it to expand once Amazon purchased Whole Foods, but the stores all shuttered in 2019. Now, Whole Foods is taking another crack at smaller store formats, and it’s an interesting move.
The New Concept Launches This Year
The first Whole Foods Market Daily Shop will launch in New York City, and the idea will be brought to other cities across the country at a later point. Whole Foods Market Daily Shops will range between 7,000 and 14,000 square feet, which is about a quarter to half the size of Whole Foods’ traditional stores, which are generally around 40,000 square feet. The new concept will offer grab-and-go meal and snack options, as well as grocery essentials, according to a press release. These new stores will not replace the original Whole Foods Market store format.
The smaller locations will offer produce, meat and seafood, bread, alcohol, supplements, local products, and Whole Foods’ 365 private brand products. The location opening this year will also offer Juice & Java coffee, tea, fresh pressed juices, sandwiches, soups, and desserts.
The first of these stores is slated to open on the Upper East Side of Manhattan at 1175 Third Avenue. Bloomberg reported that Whole Foods has signed five New York City leases for the concept.
Whole Foods Market Daily Shops will also be equipped with Amazon One, Amazon’s palm payment service.
Amazon Is Seeing Changes, Too
Amazon, on the other hand, is also seeing some success with new grocery options. The retailer is picking up momentum with its newest grocery business, outside of what Whole Foods is doing. In August 2023, the company announced significant changes to Amazon Fresh, including a new store format and expanded online access. The new rollouts for those changes are expected to be seen nationwide this year.
We are excited to see more affordable and healthier grocery options making their way to areas that may not have access to such foods, and it will be interesting to see how this new concept fares.