A new "Millennial-minded" concept store from Whole Foods, called 365, is set to open this week in Lake Oswego. The store, the second in the country to use the format, will open at 9 a.m. Thursday at 11 State Street, at the site of a former Albertsons.

The store is a smaller, stripped-down version of a typical Whole Foods, with changes designed specifically to reduce overhead or appeal to younger shoppers.

365 President Jeff Turnas said Whole Foods views its first three concept stores as test stores, to gauge how different communities react to it. (The first opened in the Los Angeles area in May, and the third is slated to open in Bellevue, Washington this fall. Ten more are scheduled to open next year.)

Whole Foods wants to reach a wider audience while keeping true to its values, Turnas said.

"We do recognize the competitive landscape has changed," he said. "We were pioneers of natural and organic, but now a lot of people have caught up."

To ensure Whole Foods remained competitive, Turnas said the retailer studied Trader Joe's and Fred Meyer as it developed its 365 stores.

"We want people walking out saying, 'Wow, I can't believe how much that cost.' In a good way," he said.

We got a sneak peek at the new store as workers prepared for the opening day. Here's what we learned about Whole Foods' concept:

It's no-frills

You won't find any fancy shelf displays here. With bare concrete floors, exposed ceiling beams, LED lights and products stacked on wooden pallets, the 365 stores are a little more Aldi (read: industrial) and a little less Whole Foods.

Turnas said the company spent about half as much on the 365 store as it would on a typical Whole Foods store.

"When you spend less capital you can offer lower prices," he said.

The layout is simple



This mindset also applies to the store's layout, which Turnas called "thoughtfully simple."

As shoppers walk in, they're greeted by the produce section, with meat and cheese cases in the back of the store. Grab-and-go items are located in the center of the store, with packaged foods and household items on the opposite side, along with a wall dedicated to wine and beer.

Twelve registers at the front of the store lead shoppers out to a seating area with free wifi. The store's two restaurant partners - Portland juice company Canteen and Bend vegan joint Next Level Burger - flank the seating area.

Canteen, a Portland-based juice bar

Turnas said the cookie-cutter layout enables the retailer to easily drop it in various sites.

It's smaller

While Whole Foods stores average 43,000 square feet, the Lake Oswego store is slightly smaller, at 36,000 square feet.

And instead of the usual selection of up to 40,000 types of products, the 365 store offers only 7,000, Turnas said. (This means that instead of 20 types of ketchup, you might just find two or three.)

About 40 percent of these 7,000 products are from Whole Foods' private label, 365 Everyday Value. The other 60 percent are from national, regional and local brands.

What's more, 365 stores employ fewer people: About 100, instead of Whole Foods' usual 200-250, Turnas said.

It's high-tech

Shoppers will be hard-pressed to find any paper price tags on the Lake Oswego store's shelves. That's because all the price tags are digital. The store also features digital signage, along with kiosks for ordering food like pizza and hot dogs to go.

In the produce section, digital scales allow shoppers to print off price tags for their fruit, vegetables and bulk items for a speedier checkout.

In the wine aisle, a kiosk enables shoppers to scan bottles of wine to read crowdsourced reviews.

And near the front of the store, a Teabot machine stands ready to create custom tea blends, suggesting popular mixes like "Moroccan mint" and "wild strawberry."

So is it cheaper?

While overall prices at 365 stores are almost guaranteed to be lower than those at Whole Foods stores, we'll have to wait and see how they compare to those at Trader Joe's, Fred Meyer and others. (Can't wait? Check out this price comparison from the Los Angeles Times.)

But here's what we do know about 365's prices and promotions:

Like Trader Joe's, 365 stores price produce by the item, instead of the pound.

365 will offer a loyalty card with three types of perks:

"Flash finds" scattered throughout the store promote special finds by 365's buyers. But when these products sell out, they're gone.

The wine section only has a handful of bottles over $20, and offers four varietals for $2.99 a bottle under its Three Wishes label. (Which is better - Charles Shaw or Three Wishes? Read reviews

As with any store opening, special deals will be available during the store's first few days to get shoppers in the door. Look for a comprehensive price comparison from us later this summer, after the 365 store has been open for several weeks.

-- Anna Marum

amarum@oregonian.com

503-294-5911

@annamarum

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