Whole Foods Executive Jim Sud Speaks on New 365 Spin Off
AUSTIN, TX - 365, Whole Foods Market’s new “off-price” grocery concept, is in the works and coming closer to completion.
The Houston Business Journal reports that the retailer’s Executive Vice President of Growth and Business Development Jim Sud has given us a glimpse of what to expect when the new idea comes to fruition.
“For most people, at least historically, grocery shopping ranked up there with taking out the garbage,” Sud said during an ICSC Florida Conference panel discussion, according to the report. “At Whole Foods, we’re trying to create an environment where people enjoy coming in to go shopping.”
Sud outlined coming expectations in three points:
- A millennial-geared format by using more technology and social media
- Enhanced focuses from some stores on lower income and underserved markets
- A smaller-sized layout.
In the short video below, Jeff Turnas, President of 365 by Whole Foods, described the chain as “cool” and “fresh.” He added, “We are not looking at a discount model, we are not looking at a ‘dumbed-down’ version of Whole Foods because we’re never going to sacrifice our Quality Standards.”
The stores, which Sud stated will be between 25,000 to 35,000 square feet at the most, will not allow for the quantity of Whole Foods’ usual offerings. Therefore, it looks like this will be much more of a “quality” approach, with the Houston Business Journal reporting that inventory will be focused on value.
Does this mean even more of a focus on fresh foods? Well, according to what Sud stated about bringing this value-focused, mini grocery chain to markets where they are needed, yes.
“There’s a perception that Whole Foods only caters to wealthy clientele, but we see customers who are very high end to those who come in and spend what looks to be their last dime,” the executive stated, according to the report. “Food deserts — where there’s not a supermarket within two miles — obesity rates [are higher]. We want to be able to provide those residents access to fresh, healthy foods.”
As we previously reported, the first five 365 stores are slated to open in 2016. The chain intends for this number to double through 2017.
