UNITED STATES - Whole Foods Market is adopting a unique new growth strategy, optimizing a smaller-scale store to broaden its network of loyal shoppers. As the Wall Street Journal reports, the retailer is opening new Daily Shop stores in dense neighborhoods to attract consumers who don’t regularly visit one of its traditional chain stores.

“We’re serving a previously unmet need in the neighborhood,” said Nicole Davia, a Whole Foods Senior Vice President, to the source.

About a quarter the size of a regular Whole Foods location, the new Daily Shop store stands at 9,100 square feet. The first Daily Shop in Manhattan, New York, has reportedly exceeded sales projections every week since opening.

In addition to this location, Whole Foods operates four more Daily Shop stores in New York City, with plans to introduce the format to the Washington, D.C., market in 2025.

Some retailers have set their focus on developing these smaller-scale stores as they can save operators money by focusing on core products, the source noted. Smaller format stores like Whole Foods’ Daily Shop can also be cheaper and quicker to open, allowing grocers to expand in urban areas where real estate or construction costs are high.

ANUK will continue to monitor the growth of this unique store format, so stay tuned.