Whole Foods, Inc. will open a 365 by Whole Foods Market store in the Fort Greene neighborhood of Brooklyn, New York, according to Bloomberg.
The small, easy-to-build, millennial-focused grocery store is named after the company’s private label brand, and was created to help fight the retailer’s “whole paycheck” reputation and entice younger demographics.
This Brooklyn location will be the first 365 store in the Northeast. There are three stores in operation on the West Coast, and Whole Foods is currently developing 20 more locations.
Millennial shoppers are the leading trendsetters for grocery retailers. Many chains have begun to incorporate organic produce lines and niche amenities like in-store dietitians, cooking demonstrations and prepared food stations to draw them in.
This has also encroached on Whole Foods’ store space. More and more of the same items that make up the organic retailer’s array of free-from, locally sourced and clean label foods can be found in traditional supermarket spaces. Whole Foods' often hefty sticker prices have made it difficult for millennials to maintain brand loyalty. While many shoppers in this demographic are looking for grocery “experiences,” few can regularly pay for them.
These trends have hurt Whole Foods sales, which have dropped for five straight quarters. The 365 stores were created to engage millennial consumers with product categories they want at prices they can afford, expanding the retailer’s consumer pool and streamlining operations. 365 product prices are cheaper than parent Whole Foods’, and are comparable with Trader Joe’s prices.
The Brooklyn 365 store continues the retailer’s strategy to reach lower-income, urban neighborhoods where large store formats are less likely to succeed.