Whole Foods opened its first smaller-format 365 by Whole Foods Market on Wednesday in Los Angeles.
The new concept is designed to be low-price and high-tech, with in-store devices available to scan labels and
weigh produce, the Los Angeles Times reported.
Exposed wooden beams and air conditioning ducts give the store the feel of a warehouse, and it offers more non-organic produce, less variety, and no butchers.
"It's definitely more stripped down than I would have expected from a Whole Foods, but I can see that price point is important here," shopper Hilary Hattenbach told the Times.
The company plans to open two more 365 stores this year — in Bellevue, Washington, and Portland, Oregon — and
10 more next year, CNN reported.
Aimed at urban Millennials, the Los Angeles store includes a craft brew bar, a self-serve tea kiosk, and a vegan restaurant.
The company's sales have taken a hit from rivals such as Sprouts Farmers Market Inc., which offers
lower prices, according to Reuters.
"Our goal is to compete in the marketplace without lowering the Whole Foods standards," president Jeff Turnas told Reuters.
In a column for Forbes magazine, retail writer Neil Stern called the concept risky and said early opinions have been "largely negative."
"There is plenty more happening which makes it extremely difficult to evaluate this store, particularly amid the frenzy of the first day," Stern wrote. "Ultimately, it will come down to whether they can meet customer expectations and deliver the model profitably."
Twitter users had mixed reactions to the concept.
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