AUSTIN, TX - Whole Foods Market has announced the launch of a new store format that targets millennial shoppers. The retailer says its yet-unnamed store will offer characteristics that millennials value, such as transparency, convenience, and lower prices.

“Today, we are excited to announce the launch of a new, uniquely-branded store concept unlike anything that currently exists in the marketplace,” said Walter Robb, Co-Chief Executive Officer of Whole Foods Market. “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 shoppers, while appealing to anyone looking for high-quality fresh food at great prices.”

Whole Foods says it is currently building a team that will focus exclusively on the millennial concept and is already negotiating leases. According to a press release, the plan is to begin opening these stores next year, and given the more standardized design and product assortment, the company expects a fairly rapid expansion from there. 

“We believe the growth potential for this new and complementary brand to be as great as it is for our highly successful Whole Foods Market brand,” added Robb. “We look forward to sharing more details about this exciting new venture sometime before Labor Day.”

This news came along with Whole Foods’ Q2 2015 financial results, which reported a sales increase of 10% to a record $3.6 billion. 

“Our results reflect another quarter of record sales and healthy returns on invested capital,” said John Mackey, Co-Founder and Co-Chief Executive Officer of Whole Foods Market. “Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection, and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States. At the same time, we also see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace.” 

Other highlights from the report include:

• Comparable store sales increased 3.6%
• EBITDA were $355 million, or 9.7% of sales
• Diluted earnings per share were $0.44, a 14% increase over the prior year
• Q2 cash flow from operations was $322 million
• Quarterly dividends to shareholders were $47 million
• Total cash and cash equivalents, restricted cash, and investments were $1.1 billion
• Return on invested capital increased 68 basis points to 15%

Stay tuned as AndNowUKnow continues our reports on Whole Foods' new format and all your industry financial news.

Whole Foods Market