Why Whole Foods is betting the farm on its new slimmer and cheaper store

Southe Califoia’s already crowded supermarket industry just got a little more crowded.

Whole Foods Market Inc. unveiled its first 365 by Whole Foods Market on Wednesday in Silveru2009Lake, and hundreds of shoppers showed up to check it out.

The 28,000-square-foot store at 2520u2009Glendale Blvd. is a slimmed down and lower-priced version of the company’s regular stores, which average around 38,000u2009square feet.

“These stores will have fewer products — about 7,000 — compared to our regular stores which can have as many as 40,000,” said Natanya Anderson, senior director of marketing for the company’s new 365u2009concept. “We’ll be opening two more locations this year. One in Lakeu2009Oswego outside Portland, and another in Bellevue, Wash. And we plan to open 10u2009more stores next year.”

Three of those locations will be in Claremont, Santau2009Monica and Losu2009Alamitos, company officials said.

• PHOTOS: First 365 by Whole Foods Market opens in Silver Lake

The Austin, Texas-based grocery chain launched the new brand amid a climate of increasing competition, as mainstream grocers and specialty shops continue to eat into sales.

Southe Califoia is already home to such mega players as Vons, Ralphs, Albertons, Trader Joe’s and Stater Bros., not to mention big-box stores like Walmart and Target that also sell grocery items.

More recent newcomers to the region include German discount grocer Aldi, which plans to open 45u2009locations through Southe Califoia, and Grocery Outlet Bargain Market, which is looking to open about 20.

Walter Robb, Whole Foods’ co-CEO, figures there’s room for everyone — including Whole Foods’ two store concepts.

“We believe there is customer demand for both formats, and as a second growth vehicle, 365 allows us to attack the value-quality proposition in a new way, while maintaining the integrity the Whole Foods Market brand represents in the marketplace,” he said in a recent eaings report. “Our Silveru2009Lake opening will be quickly followed by openings in Lakeu2009Oswego, Oregon and Bellevue, Washington. We are excited to lea from these first three stores and evolve from there.”

The company has haessed technology to make the 365u2009shopping experience easier for consumers.

• VIDEO: First 365 by Whole Foods Market opens in Silver Lake

The Silveru2009Lake store’s grab-and-go section features a variety of prepared food options. Shoppers can order hot dogs, bowls made with quinoa, rice and veggies and pizza — all from self-serve kiosks. And those who want to eat at the store can supplement that with a beer, expresso or loose-leaf tea blend at the Allegro Coffee craft brew bar.

With more than 65u2009indoor and outdoor seats, the store’s menu has traditional espresso drinks, brewed coffee and loose leaf tea blends as well as wine and local beers on tap.

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Those include Losu2009Angeles County-based 101u2009India Pale Cider, Ballast Point Sculpin, Grapefruit Sculpin and Imperial Stout from Sanu2009Diego.

“I love it!” said Susan Gros, 48, who drove all the way from Thousandu2009Oaks to check out the new store. “It’s a place where you can just eat and hang out.”

Jessica Wolfe, 31, of Losu2009Angeles loaded up her cart with a variety of fresh food offerings, including arugula, artichokes, nuts and grass-fed butter.

“It’s great to have this kind of organic selection at farmers market prices,” said Wolfe, who lives just a few blocks away. “This store is sort of a hybrid between Trader Joe’s and Whole Foods. I just like the health-conscious selections.”

With sales of about $15u2009billion in 2015, Whole Foods company currently has 446u2009stores in the U.S., Canada and the United Kingdom. The company sees potential for 1,200u2009Whole Foods Markets in the U.S., with the new 365u2009format expanding that growth opportunity even more. The company currently employs about 86,000u2009workers.