Whole Foods reveals more 365 locations

While Whole Foods continues to work on the performance of its flagship stores, the company disclosed new locations and expressed confidence in its 365 format even though the first unit is scheduled to open until May.

New revelations about 365, Whole Foods lower priced, no frills, smaller footprint format, were made in conjunction with the release of financial results for the company’s first quarter ended Jan.16. Same stores sales declined 1.8% during the period and the company also disclosed that comps deteriorate further during the first three weeks of the second quarter, declining 2.8%.

Despite the top line challenges, the nation’s leading natural and organic grocer produced solid profits, offered fresh insights into plans for the new 365 format and indicated the concept could allow it to exceed earlier guidance which envisioned the company operating 1,200 stores throughout the U.S.

“We delivered record sales of $4.8 billion this quarter and are pleased with the progress we have made on our nine-point plan outlined in November,” said Walter Robb, co-CEO of Whole Foods Market. “We improved our cost structure, stepped up our value efforts, and are excited to announce today the national launch of digital coupons within our mobile app. We believe we will deliver strong returns to shareholders over the long term as we improve our price perception, better communicate our higher quality standards and differentiation, and continue to fundamentally evolve our business.”

Perhaps the greatest evolution of the company’s business will come in the form of the new 365 format set to debut in Los Angeles suburb of Silver Lake in May. That opening will be followed by two additional openings in 2016: Lake Oswego, Ore., in July and Bellevue, Wash., in August. The company also said it signed leases for five other 365 stores, averaging about 30,000-sq.-ft., located in Claremont, Concord and Los Alamitos, Calif., Gainesville, Fla., and the Chicago suburb of Evergreen Park, Ill.

“The company sees potential for 1,200 Whole Foods Market stores in the United States, with the new 365 format expanding the growth opportunity beyond 1,200 stores,” Whole Food said in a statement.

Whole Foods first quarter net income declined to $157 million from $167 million while share repurchase activity enabled the company to maintain earnings per share of 46 cents that were comparable to the prior year.