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Whole Foods shelves 365 store concept

No more locations to be built, CEO John Mackey tells employees

Russell Redman

January 15, 2019

3 Min Read
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After less than two years, Whole Foods Market plans to discontinue the Whole Foods 365 store format.

Whole Foods CEO John Mackey (below) informed employees of the move in an internal memo. Plans call for the Austin, Texas-based company to continue operating the current 12 Whole Foods 365 locations but not to build any more of the stores.

John_Mackey_Whole_Foods2.pngThe first Whole Foods 365 store opened in May 2016 in Silver Lake, Calif. The concept was billed as having lower prices than the typical Whole Foods, as well as a more local flavor. In addition, the 365 stores are smaller (about 25,000 to 30,000 square feet) than conventional Whole Foods supermarkets, which average around 38,000 square feet and can range up to 50,000 square feet. The smaller format also carries about 7,000 SKUs, less than half of the 20,000-plus SKUs at full-size Whole Foods stores, and doesn’t include full-service departments such as deli or bakery.

The combination of cheaper prices and smaller footprint was seen as opening up more expansion possibilities for Whole Foods in terms of space and location. But in the employee memo, Mackey said the differentiation between the formats has dissipated as Whole Foods has evolved its brand.

“When we launched our Whole Foods Market 365 stores, the intention was to create a more value-focused and streamlined shopping experience that maintained the integrity of Whole Foods’ quality in a convenient format that’s less expensive to build and operate. We have been successful in achieving these goals,” he explained in the memo. “However, as we have been consistently lowering prices in our core Whole Foods Market stores over the past year, the price distinction between the two brands has become less relevant. As the company continues to focus on lowering prices over time, we believe that the price gap will further diminish. 

Related:Whole Foods 365 makes Atlanta debut

“As a result, we have decided that it’s in the best long-term interest of the company to concentrate our efforts on growing the core Whole Foods Market brand moving forward,” Mackey said.

Besides the Silver Lake location, the other 365 stores are in Concord, Long Beach, Los Angeles, Santa Monica and Upland, Calif.; Akron, Ohio; Cedar Park and Houston, Texas; Decatur and Atlanta, Ga.; Brooklyn, N.Y.; and Lake Oswego, Ore. The Decatur and Atlanta locations opened last month.

Jeff Turnas, president of the Whole Foods 365 unit since June 2015, is slated to shift to another role at Whole Foods, according to Mackey.

“Under Jeff Turnas’ leadership, the 365 store brand has developed innovations and efficiencies across purchasing and operations that have — and will continue to — make Whole Foods better. Auto replenishment, digital shelf tags, labor scheduling and ‘Friends’ partnerships with outside companies are just a handful of examples of best practices that have come from the 365 team,” Mackey wrote. “Jeff will spend the coming weeks ensuring all 365 operations are smoothly transitioned to the respective regions and continue his work leading special projects, including new store-format development, until he transitions into a new role within the company.”

Related:Take a tour of Whole Foods’ first East Coast 365

Whole Foods said the stores will be integrated into the retailer’s current regional structure, and the company is working to place all employees in new roles.

“While we won’t be growing the 365 store format, we will continue to innovate and experiment with new store concepts and designs that will allow us to offer customers unique and differentiated experiences that play to the strengths of the company,” Mackey said.

Overall, Whole Foods operates 475 stores in the U.S., plus 14 in Canada and seven in the United Kingdom.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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