USA
Whole Foods is furthering its expansion goals by moving into some of the
toughest markets and neighborhoods in the US, according to Forbes.
During its latest stage of growth, it will be opening up over
1,000 "smaller and urban" stores in markets that were previously unimaginable for the retailer. In an effort to become
more accessible to the masses, it is going for smaller stores in markets such as Brooklyn and Boise, as well as bigger stores in places like Downtown Detroit and Englewood.
Though the Whole Foods brand is well known, it was
previously thought to be out of reach by many. These new stores are an attempt to overcome this perception and drive growth for the retailer.
However, one of the largest obstacles to overcome is the integration into neighborhoods that on the surface don't seem like a good fit for Whole Foods.
Remaining true to the brand while also being inclusive in these areas are important aspects of this expansion.
"This (move into lower income areas) is a bit of a stretch for us, but it’s the next stretch. And it’s one that makes sense…as long as we do it respectively and inclusively within a community," said Whole Foods Co-CEO Walter Robb.
In order to move into lower income areas, Whole foods focused on initiatives like offering
carefully selected lower-priced items than are stocked in other locations. Also included was more of
Whole Foods' house brand, 365 Everyday Value, as well as
fresh food that is priced individually rather than per pound. Regional
food stamp programs are also accepted.
In every community it enters, Whole Foods commits to truly becoming a part of that community. This has come in the form of nonprofit donations and adding jobs for people within those communities. With an
average hourly wage of $18.89 in 2013, the infusion of Whole Foods jobs could be a real boon for low-income areas.
Expanding into these neighborhoods ultimately means healthier food will be available to the local residents. While the benefits to these areas are obvious, the economics are also turning out favorably for Whole Foods. The Detroit, Brooklyn, Boise, and Lincoln locations are all
exceeding expectations.
So far, Whole Foods' latest expansion is an
interesting success story, proving that it can market to a much wider audience.
Whole Foods
