In May, Whole Foods (in my world, known as “Whole Paycheck”) revealed a new business undertaking. The Whole Foods Market Inc. introduced 365, a new grocery chain aimed at offering lower prices while providing a high-technology experience for customers.
When I first learned about the chain, I thought, “Oh, it’s like Whole Foods … but I can afford it!” However, 365 is trying to avoid the title as “the cheaper Whole Foods” and instead provide a new consumer grocery shopping experience.
Instead of wine specialists, iPads are placed in the beverages section to help you find your perfect pairing. Produce is priced per piece or per package rather than by the pound. Meat, cheese and fish are in to-go packages instead of ordering them from butchers, cheese and fishmongers. Stores exclusively use digital pricing, which enables them to change prices instantly. Fast-pay areas include kiosks that only accept Apple Pay and credit cards for a speedy checkout.
According to Reuters, 365’s target market includes cash-strapped “millennial moms” and people who buy from a range of other food sellers, such as Kroger, Walmart, Amazon and meal kit providers.
365 launched its first store in Los Angeles and will be an interesting venture to watch. According to a Fierce Retail study earlier this year, 74 percent of millennials and 80 percent of Generation Z still want brick-and-mortar stores but consider the product interaction to be critical to making a purchase.
As the online marketplace expands to encompass fresh food and produce, maybe this is what grocery stores need to do to ensure a steady supply of shoppers.