Whole Foods is moving forward with plans for a store at Northtown Plaza in Amherst. WS Development was expected to close on the purchase of the aging plaza this week but the deed has not been filed with the County Clerk’s office as of this morning. An opening date for the 50,000 sq.ft. new Whole Foods store has not been set. On May 6, Whole Foods announced it will open a store in Brighton, a Rochester suburb. That store is expected to open in 2017.
Many had wished Whole Foods would locate in the city as it has done in other markets with its 418 current stores and 113 additional stores in development. But it was no surprise when it chose Amherst for its first regional location. While there may be a chance to land a Whole Foods in the city sometime down the road, there may be a greater chance to land a slimmed down version of the coveted store if it takes root.
Whole Foods is launching a sister chain of small-scale groceries that offer organic and natural foods at lower prices than its namesake stores. They would be one-third the size of its traditional stores, similar to the size of a Trader Joe’s, which will keep costs down. The Wall Street Journal has the story:
In announcing the new format, to be unveiled this summer, executives said it would be “hip,” “cool,” and “high-tech,” with stores that are smaller and less costly to operate than its traditional outlets, which average 38,000 square feet, the equivalent of about 13.5 tennis courts.
If it succeeds, Whole Foods could win over younger, cost-conscious consumers now put off by its array of pricey items, analysts said on Thursday.
Its new—and as yet unnamed—chain would have to draw in those customers, they said, but ensure that it doesn’t do so at the expense of its more than 400 namesake stores.
At least one expert isn’t convinced this is a winning strategy:
“We’ve never seen a food retailer operate an entirely new format successfully, especially one that is so different,” said Barclays analyst Meredith Adler.
Recent Whole Foods filings with the U.S. Patent and Trademark Office offer possible clues about the new chain’s name, said Charles Grom, analyst at brokerage Sterne Agee. Among the names Whole Foods has filed to trademark since last week: Dailyshop, Clever Egg, Small Batch, and Greenlife.
The smaller stores are expected roll out in the Northwest next year according to the Portland Business Journal. The company has not announced how many of the new format stores it plans to open.