Whole Foods is opening a discount grocery store targeting millennials.
The store will be “unlike anything that currently exists in the marketplace,” Walter Robb, co-CEO of Whole Foods, said in a release.
But based off his description, it sounds pretty similar to Trader Joe’s, which sells a curated selection of private-label foods at cheap prices.
Describing the new store concept, Robb said, “Offering our industry-leading standards at value prices, this new format will feature a modern, streamlined design, innovative technology and a curated selection. It will deliver a convenient, transparent, and values-oriented experience geared toward millennial shippers, while appealing to anyone looking for high-quality fresh food at great prices.”
The company said it is building a team solely to develop the stores and negotiate leases. It plans to launch them next year and expects a “rapid expansion” thereafter.
“We look forward to sharing more details about this exciting new venture sometime before Labour Day,” Robb said.
Whole Foods’ stock plunged more than 11% Thursday after the company reported quarterly sales of $US3.6 billion, which represented a 10% increase over the previous year, but fell short of investors’ expectations for $US3.7 billion.
The grocery store has been slashing prices to keep up with growing competition in the organic food market.
Organic food sales in the U.S. more than tripled from $US11 billion in 2004 to an estimated $US35 billion in 2014.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.