- Wedbush warns that the new 365 format from Whole Foods Market (WFM -1.5%) is a long-term threat to Sprouts Farmers Market (SFM -0.7%). The slow roll-out of 365 gives Sprouts plenty of time to adjust.
- The view is different for United Natural Foods (UNFI +0.7%) which is seen as only having a minor impact with Whole Foods still stocking branded products.
- As for Whole Foods itself, Wedbush says 365 is likely to only "partially cannibalize" existing locations will attract additional "everyday" consumers. The investment firm thinks the strategic reset is likely to succeed over the long term, but sticks with a Neutral rating and $29 price target on WFM for the short term.
- Previously: Whole Foods Market opens its first 365 store today (May 25)