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Whole Foods Discontinues Millennial-Targeting 365 Brand

A Whole Foods 365 location

Under the ownership of Amazon, Whole Foods no longer sees a need for its bargain-focused offshoot.

The upscale grocer is discontinuing its Whole Foods 365 brand of "millennial-focused" stores, Fortune reports. CEO John Mackey said the offshoot was no longer needed now that the company has been able to slash prices on many grocery items.

"The price distinction between the two brands has become less relevant," Lackey told Fortune.

The 365 concept had been in the testing phase for two and a half years with 12 locations, five of which are in California. Mackey told Fortune that the current locations will remain open. Beyond lower prices, Whole Foods 365 targeted younger consumers with an emphasis on technology and social media integration. Amazon is pushing the former into all Whole Foods stores through its Amazon Prime perks and Prime Now grocery delivery, further rendering 365 redundant.

With Amazon's deep pockets behind it, Whole Foods is planning a massive nationwide expansion. It plans to enter markets it previously had avoided (perhaps through vacated Sears stores), and expand its existing stores to boot. 

CORRECTION, JAN. 17, 10:15 A.M. ET: A previous version of this article misspelled the name of Whole Foods CEO John Mackey. This article has been updated.