Whole Foods Market Inc. plans to launch a new affordable organic store concept to appeal to millennial shoppers as well as those looking for high-quality fresh food. The announcement was made when the company reported its Q2 results, which included a total sales increase of 10 percent to a record $3.6 billion. The company said it hopes to capitalize on its success and triple the number of Whole Foods stores in the United States.

"Today, we are excited to announce the launch of a new, uniquely branded store concept unlike anything that currently exists in the marketplace,” said Walter Robb, co-chief executive officer of Whole Foods Market. "Offering our industry-leading standards at value prices, this new format will feature a modern, streamlined design, innovative technology and a curated selection.  It will deliver a convenient, transparent and values-oriented experience geared toward millennial shoppers, while appealing to anyone looking for high-quality fresh food at great prices."

The company is building a team to focus exclusively on this new concept and is currently negotiating leases. The plan is to begin opening stores next year, and given the more standardized design and product assortment, the company expects a fairly rapid expansion from there.  "We believe the growth potential for this new and complementary brand to be as great as it is for our highly successful Whole Foods Market brand," added Robb. "We look forward to sharing more details about this exciting new venture sometime before Labor Day."

"Our results reflect another quarter of record sales and healthy returns on invested capital,” said John Mackey, co-founder and co-CEO of Whole Foods Market. "Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States.  At the same time, we also see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace."

In the second quarter, the company opened 11 new stores, including three relocations and three former Dominick's locations. In the third quarter, the company has opened three new stores, including one former Dominick's location, and expects to open five additional stores, one of which is a former Dominick's location.

Whole Foods currently has 417 stores totaling approximately 16 million square feet and expects to cross the 500-store mark in fiscal year 2017. Longer term, the company sees demand for 1,200 Whole Foods Market stores in the United States.