Whole Foods just took a step toward becoming the ultimate destination for millennial shopping

Whole Foods is making another big move to become millennials’ favourite grocery chain.

The grocery giant has reportedly signed a five-year partnership with delivery startup Instacart, making the startup the exclusive delivery partner for Whole Foods’ perishables business, reports Recode.

Whole Foods is investing of an unknown amount of money in Instacart, multiple sources told Recode.

While the two companies have partnered on deliveries since 2014, this deal could signal a major step forward in growing Whole Foods’ delivery business — and attracting new millennial customers.

The company has faced growing competition recently, as big-box retailers and grocery chains such as Walmart, Target, Kroger, and Aldi have invested in more organic, gluten-free, and natural foods. To compete, Whole Foods has promised to lower prices and is attempting to attract millennial shoppers with the new 365 brand.

The new chain, called 365 by Whole Foods Market, will target younger, tech-savvy shoppers. The company claims that products will be less expensive, and locations with host trendy vendors like tattoo parlors and record shops.

The first 365 location is slated to open in May in Los Angeles.

Growing delivery would be another a major means of attracting more millennial shoppers. More and more grocery chains are testing grocery delivery — many through partnerships with Instacart. In fact, the grocery startup has already partnered with chains including Target and Costco.

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