Whole Foods Market can make a “dent” in the UK grocery sector despite its recent struggles, according to international VP Rick Bonin, as the Amazon-owned grocer gears up for a renewed UK expansion drive.
Whole Foods opened its first British store in over a decade on King’s Road in London on 25 March, and is now “actively” negotiating for a number of sites in Greater London, as part of plans to open 90 new stores across the UK, Canada and its core US market.
Smaller than its five existing UK stores, at 22,000 sq ft, the new Chelsea store will form the new model for Whole Foods’ future UK openings. It is the first time the retailer has combined elements of its new Daily Shop US convenience format with the “theatre” and full range of its standard food halls in the UK, according to Whole Foods.
Food to go, a coffee counter and self-service checkouts are all located at the front of the store, designed to enable shoppers to pop in and out quickly, with a full range grocery shop, full complement of counters and new-look beauty hall located further back. It also features new UK-first formats, in the form of a new blend-your-own nut butter station, a pizza counter and a specially installed Amazon parcel click & collect counter.
“It’s a bit of a change for us,” Bonin told The Grocer, adding that having multiple shop formats would give Whole Foods the opportunity to open stores in locations it couldn’t previously reach.
“Our Kensington store is 80,00 sq ft, you’re not going to find many sites of that size in the UK – not that we’d want to. But by having varying sizes, it gives us much more opportunity within all of Greater London really,” Bonin said.
“Between size of stores, right location, ability to hire and develop our team members really make the sweet spot of where we are going to go,” Bronin said. He said Whole Foods would also move away from opening multi-tiered shops in the UK, in order to improve the “ease of shop” for British shoppers.
Whole Foods ramping up own label
Whole Foods has struggled to turn a profit since it launched in the UK in 2004, where its premium offer faces stiff competition from the likes of M&S, Waitrose and smaller players like Planet Organic.
Its latest accounts reported a pre-tax loss of £23.1m, despite millions in investment from owner Amazon, which acquired the brand in 2017. Last March it closed two stores, in Richmond and Fulham, as well as a distribution centre in Dartford, in a move it said would “pave the way” for future expansion.
Bonin, who opened Whole Foods’ first UK store in Kensington in 200, said: “The dent we make [in UK grocery] will continue to be through developing the range further. The combination of strong brands, right location, right amount of service and right amount of self service.
“The multiples are the multiples,” he added. “Whatever comparison folks make to M&S and Waitrose, we see a spot for us in that mix.
“We know customers will shop all three of us and what it is they are finding here is what we continue to refine.”
Whole Foods has been adjusting its offer and investing in price, under a programme led by executive leader of purchasing Jade Haoi. It saw the addition of 141 “UK favourite” cupboard staples in March 2024.
It has also been expanding its own label lines, adding dozens of new products including soups, ready meals and fish from its Whole Foods and value 365 tier to UK stores.
It has worked to lower prices through three rounds of cuts, and launched promotions including ‘Weekday Deals’, giving money off specific products on different days of the week.
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