More News:

May 07, 2015

Whole Foods launching chain of lower-cost stores

Company hopes to attract cost-conscious buyers

Supermarkets Whole Foods
05072015_WholeFoods_AP Elise Amendola/AP

A paper bag from Whole Foods Market

Whole Foods is looking to attract cost-conscious buyers by opening a new, lower-cost chain of stores, CNN Money reports.

CEO John Mackey said on a conference call that the new chain will be "technology-oriented" and cheaper to operate.

"We've been so successful that we've actually bred a lot more competition and everyone is jumping on the natural and organic food bandwagon, and that's really, frankly, due to our success," Mackey said on a conference call with CNN Money. "You have to be willing to evolve with the marketplace ... to serve your customers."

Whole Foods currently operates 417 stores and plans to open 23 new ones this year. The company said it expects sales growth this year of more than 9%, and same-store sales growth in the low to mid-single digits.

There are 10 Whole Foods locations in the Philadelphia region, with two in Center City and two in nearby South Jersey in Cherry Hill and Marlton.

Whole Foods is currently in negotiations for leases for the new stores.

Read more from CNN Money.