Whole Foods shares are crashing after the company reported disappointing earnings.
Investors were unimpressed after Whole Foods announced a lower-priced chain of grocery stores aimed at attracting millennial shoppers in an earnings call.
The new concept will be smaller and have a more targeted selection of fresh food and other items, co-founder and co-CEO John Mackey told investors.
"This new format will feature a modern, streamlined design, innovative technology and a curated selection," co-CEO Walter Robb said. "It will offer convenient, transparent, and values-oriented experience geared toward millennial shoppers, while appealing to anyone looking for high quality, fresh food at great prices."
The stores are set for a 2016 launch, according to Mackey.
"We think a streamlined, hip, cool, technology-oriented store unlike any store anybody has ever seen before that has lower capital, lower cost, perhaps little labor cost and lower prices is going to be very, very attractive to that particular generation," said Mackey.
Whole Foods will make additional announcements regarding the new store and other developments at the company in the future.
For years, Whole Foods has been plagued by the nickname "whole paycheck" because of its costly, organic cuisine.
The retailer previous tried to shake this reputation by offering "budget classes" at its new store in Detroit, reported Sapna Maheshwari at Buzzfeed.