Amazon-owned Whole Foods is launching smaller-format stores across the U.S. to expand its reach in dense metropolitan areas.
The new format, called Whole Foods Market Daily Shop, will range between 7,000 to 14,000 square feet, about a quarter to half the footprint of an average 40,000-square-foot Whole Foods Market store, the grocer announced on Tuesday.
The stores will not replace the traditional Whole Foods Market store format. Rather, it is an opportunity for the grocer to better capitalize on "bustling hubs" and ultimately expand its urban real estate footprint.
To date, Whole Foods has more than 530 stores in North America and the U.K., with more than 75 stores in the pipeline.
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The stores will feature grab-and-go meals and snacks as well as a selection of fresh, seasonal produce, meat and seafood, prepared foods like sandwiches and pre-packed meals, breads, alcohol and supplements. It will also have local specialties and its 365 by Whole Foods Market brand, just like its larger format stores.
The first location, which will have a Juice & Java inside, will open in the Upper East Side neighborhood in Manhattan this year, with additional locations throughout the city to follow.
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After the stores launch in New York City, the format will open in other cities across the country. The company did not specify which cities yet.
"Expanding our footprint with Whole Foods Market Daily Shop is key to our growth, fostering deeper customer connections, and advancing our purpose to nourish people and the planet," said Christina Minardi, executive vice president of growth and development at Whole Foods Market and Amazon.
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It is not the first major brand to open up smaller locations.
More than 170 of Target's 1,956 stores across the U.S. are small-format stores.
Walmart has nearly 700 Neighborhood Markets, which are described as a smaller-footprint option for communities in need of a pharmacy, groceries and merchandise.
