Whole Foods Market’s 365 store expanding in California

Whole Foods Market is opening its first 365 store in Los Angeles on the 25th of May, ushering in a new lower-priced concept designed to attract new shoppers, according to Los Angeles Time. 365 by Whole Foods Market stores, slated to begin opening in 2016, it offers everyday low prices on natural and organic products. The 365 stores has an average surface of 30,000 square feet, compared with the 45,000 square feet of Whole Foods stores. The 365 stores will save costs by reducing the number of workers needed. There also will be a more limited variety of products, 7,000 items compared with 20,000 at Whole Foods.

The 365 concept comes as Whole Foods is facing increasing competition from multiple fronts. Traditional supermarkets such as Ralphs and Safeway are expanding their organic produce offerings while big-box companies such as Wal-Mart and Target are bulking up their food selections. In the Southland, the intense competition did in grocery upstarts such as Fresh & Easy and Haggen.

Whole Foods is feeling the pressure. The Austin, Texas, company has posted three straight quarters of sales declines at stores open at least a year. In its second quarter ended April 10, Whole Foods reported flat sales compared with a year earlier.

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