Whole Foods is experimenting with a new, smaller store format – the ‘Daily Shop’ – with its recent launch in Arlington, Virginia. This concept aims to cater to urban lifestyles and quick shopping needs, offering a streamlined selection of grab-and-go meals, snacks, and essential groceries.
The Arlington Daily Shop, located near Amazon HQ2, is roughly a quarter to half the size of a traditional Whole Foods Market, encompassing over 10,000 square feet. Despite its smaller footprint, it still provides essential offerings like produce, prepared foods, and packaged meats. Notably, it’s the first Daily Shop to incorporate Amazon pickup and returns, featuring one staffed checkout and six self-checkout stations.
Located near Amazon’s HQ2 campus and a full-sized Whole Foods location, the Daily Shop provides a comparative shopping experience. Prices are identical to the traditional store, with offerings like chicken breasts ($6.99/lb), eggs ($5.29/dozen), and pizza ($4.29/slice). While offering a robust hot food bar (pizza slices and chicken) and a coffee shop, it focuses on convenience and speed. The store also includes an area for grocery delivery orders and advertising for holiday catering.
Initial customer feedback highlights a preference for the larger Whole Foods location for its expansive hot bar and broader selection. However, the Daily Shop appeals to customers seeking a quick lunch or to-go meal. Amazon reported that 42% of shoppers at the Lenox Hill Daily Shop location were either new or re-engaged Whole Foods customers, validating the concept.
The Daily Shop serves primarily urban professionals, commuters, and nearby office workers, aligning with Whole Foods’ strategy to ‘tailor every square foot to the unique, fast-paced needs of urban lifestyles,’ according to exec Christina Minardi. The retailer is also exploring the store as a testbed for new Amazon grocery technologies, including package returns. Amazon has faced mixed results in grocery, previously experimenting with ‘Just Walk Out’ technology and exploring a ‘store within a store’ model.