For the current quarter through May 1, those sales were down 2.6 percent.
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The company is trying to differentiate itself from competitors with the new “365 by Whole Foods” format, a planned chain of smaller stores that seeks to appeal to younger and more cost-sensitive consumers.
Whole Foods also managed to keep prices down, especially in perishables – including fruits and vegetables.
In 2017, as many as 10 of the 365 stores could open, including a Cedar Park location near New Hope Drive and the 183-A Tollway.
The Whole Foods Market leases average 49,000 square feet and are located in Santa Monica, Calif.; Miami, Fla.; Vernon Hills, Ill.; Jersey City, N.J.; Commack, N.Y.; and Nashville, Tenn. The company remains a leader in sourcing antibiotic-free meats and local products, and is taking retailing to another level with bars, trendy restaurants and food kiosks in its newer stores.
The retailer is slated to open its first 365 store in the Los Angeles suburb of Silver Lake on May 25. Whole Foods is prepping for the launch of its hipster new grocery chain, 365 at Whole Foods Market, which the company says will have a minimalist layout, affordable prices and third-party vendors who set up shop inside the stores.
Whole Foods Market Inc. on Wednesday cut its full-year sales and profit guidance as fresh discounts failed to halt the decline in a key sales measure. In addition, it has renegotiated three leases in development, converting them from Whole Foods Market stores to 365 stores. But the company says there’s room for both chains, and that it still sees potential for 1,200 locations of its namesake stores in the U.S.
Whole Foods also now expects total sales to rise by 3 percent for the year, reflecting a 2 percent decline in sales at established locations.
Year-over-year comparisons are expected to ease this quarter as it laps the opening of a number of new stores in Chicago and Florida that initially cannibalized existing locations.
The company has been managing labor costs and other expenses, and aims to improve the shopping experience with technology to speed up checkout lines, investments in delivery partner Instacart and an all-new loyalty program.
Over all for the 12 weeks ended April 10, Whole Foods reported a profit of $142 million, compared with $158 million a year earlier, marking the third consecutive quarterly decline. The Austin, Texas-based chain’s comp sales dipped 3 percent alongside a total sales increase to a record $3.7 billion during the 12-week timeframe.
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That was more than the 41 cents Wall Street expected, and the company’s stock shot up 3.5 percent to $29.50 in after-hours trading.
