Whole Foods Tries Out a Small-Format Concept Again Called the Daily Shop. Here’s Why It Will Work This Time

Whole Foods has launched a new small-format store concept called the Daily Shop. The popular grocery chain first tested this concept in 2019 in Chelsea, New York City. The chain also tried out a different store with a smaller footprint in 2016 but shut it down in 2019. Here’s why this new concept will work.

The Whole Foods Daily Shop Concept

With ambitions to expand the concept to other urban neighborhoods, the Amazon-owned supermarket company just unveiled its first Daily Shop mini-market on Manhattan’s Upper East Side, according to PYMNTS.

According to the report, the 9,100-square-foot store in New York City is about one-fourth the size of a typical Whole Foods and offers similar-priced goods.

The Daily Shop locations are part of a broader initiative by supermarkets to relocate their operations into smaller facilities in an attempt to attract “fill-in shoppers,” or customers who visit the store frequently but buy fewer things.

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“We’re serving a previously unmet need in the neighborhood,” Nicole Davia, a Whole Foods senior vice president, said in a statement to the Wall Street Journal.

According to the article, which cited data from Placer.ai, which tracks store visits, this kind of shopping is becoming more popular. The firm explained that shoppers spent less time each visit but made 11% more journeys to grocery stores in the 12 months ending in October than they did in 2019.

Plans Were Announced Earlier This Year

Whole Foods has a history of moving toward smaller outlets. The firm started 365 by Whole Foods Market, a 25,000-square-foot store that was smaller than normal Whole Foods locations but larger than the new Daily Shops, in 2016. The initiative was abandoned in 2019.

Earlier this year, plans for the Daily Shop outlets were originally revealed. The layout of these stores appears to be intended to compete with the cult favorite grocery store, Trader Joe’s, which is renowned for its small selection.

Amazon, the parent firm of Whole Foods, is attempting to revive its food industry with this innovative idea. It revealed major modifications to Amazon Fresh in August of last year, signaling a further foray into the supermarket industry.

With sizes ranging from 7,000 to 14,000 square feet as opposed to the usual 40,000 square feet, these new stores will be a 10th of the size of existing ones. They will offer a selection of grab-and-go meals, snacks, and vital consumables, including fruit, meat, seafood, bread, alcohol, vitamins, and private-label products. Bloomberg reported at the time that every product offered will meet Whole Foods’ quality requirements and exclude additives like high-fructose corn syrup.

Christina Minardi, executive vice president of growth and development at Whole Foods Market and Amazon, highlighted that the shift to home delivery has altered consumer expectations toward faster service.

“At our new store formats, we’re tailoring every square foot to the unique, fast-paced needs of urban lifestyles. We’re excited to introduce a new way for our customers to quickly pick up their Whole Foods Market favorites — from grab-and-go meals to that last-minute dinner ingredient — making the early morning or after work grocery trips more efficient and enjoyable,” Minardi said in a statement accompanying the press release announcement about the stores.