NEW YORK (TheStreet) -- Shares of Whole Foods Market (WFM) are rising by 0.16% to $31.73 in pre-market trading Wednesday, as the Austin-based organic foods retailer launches the first of its new urban food store chains.
On Wednesday, the company opened its first of several "365" stores in Los Angeles. Two more are opening later this year in Portland, OR, and Bellevue, WA, while another 10 are scheduled to open in 2017, CNN Money reported.
The 365 stores, catering to urban Millennials, are about a third smaller than the Whole Foods supermarkets and carry a quarter of the number of products, which will help reduce real estate and merchandise-related costs, Reuters reports.
The new store, and all 365 shops, have features that other Whole Foods stores do not such as a craft brew bar for hot coffee and cold beer and a self-serve tea kiosk, according to CNN Money.
Recently, Whole Foods has seen a drop in same-store sales at its large supermarkets due to competition from rival Trader Joe's and other retail giants such as Target (TGT) and Walmart (WMT).
"Our goal is to compete in the marketplace without lowering the Whole Foods standards," Jeff Turnas, 365 chain president, tells Reuters.
Separately, TheStreet Ratings rated Whole Foods Market as a "hold" with a score of C.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon.
Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
However, as a counter to these strengths, TheStreet Ratings finds that the stock has had a generally disappointing performance in the past year.
You can view the full analysis from the report here: WFM