Tired of its high-priced reputation and seeking a younger, millennial shopper Whole Foods has announced plans for a lower-priced chain that doesn’t yet have a name. However, according to Bloomberg, the company has filed a ton of trademark applications for names like Dailyshop, Clever Egg and Small Batch (ahem) to add to its existing house brand, 365 Everyday Value.
Competition from retailers like Wal-Mart that are stepping up their organic game are blamed for Whole Foods’ less-than-stellar financial returns. Same-store sales for the quarter were up just 3.6 percent. Of course, going into this low-priced area also means there will be competition from stores like Trader Joe’s, which captures a lot of younger shoppers.
Details are scarce until Labor Day, but the company has said that there might be as many locations of the TBD chain as there are existing Whole Foods.
“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 price,” said co-CEO Walter Robb.
Whole Foods just introduced its first commercials in recent months, the step towards reaching out to a more diverse customer. While the overall message — high-quality, good value, health and wellness — hits a lot of ideals that consumers are looking for, people still don’t want to break the bank buying organic grapes. (Seriously. You buy a bunch of organic grapes and it can be $12. Who hasn’t realized that at the register and wanted to run away?)
People genuinely do like Whole Foods, so we’re thinking this is going to be a successful venture. We wonder whether it’ll be so successful that it overshadows the higher-priced brand. Or, perhaps, Whole Foods will shed the “everyday value” messaging at its existing stores and resign itself to being the place for pricey grapes.