US organic giant looks out of town

US organic grocery giant Whole Foods Market is planning to move out of town.   The Texas-based retailer, which made its debut in the UK in June last year with the opening of a 75,000 sq ft supermarket in London’s Kensington, SW3, is investigating 12 out-of-town locations to house a new warehouse concept.   It has appointed niche agents Green & Partners and Gilbert Bath to search for sites of 20,000 sq ft to 70,000 sq ft.   Whole Foods is also preparing to open its first regional flagship store. It is in advanced negotiations with Calthorpe Estates about a 54,000 sq ft anchor for the developer’s £110m mixed-use scheme on the edge of Edgbaston, near Birmingham.   The supermarket – favoured by celebrities including Gwyneth Paltrow and Madonna – wants to replicate its US warehouse model in the UK.   In the US, the firm, which turned over $6.6bn (£3.3bn) last year, operates more than 270 stores. The majority of its 40,000-75,000 sq ft supermarkets are based out of town with 200,000 or more people living within a 20-minute drive. The stores have substantial parking.   Sources claimed that disappointing sales at Kensington may also have prompted the UK out-of-town drive.   One said: “Whole Foods is hoping that by recreating the US atmosphere in the UK out-of-town market it will be able to really drive sales. But it can only get space for the format it needs to do that outside of town centres.”   Supermarket Waitrose is also keen to extend its presence out of town to compete with its rivals, Tesco, Asda and Marks & Spencer.   The John Lewis Partnership-owned company is looking for 30,000 sq ft stores, and is understood to have three units on regional retail parks under offer.   One agent warned: “Waitrose and Whole Foods may have issues in finding the correct space out of town as they will only be able to open on Open A1 parks with food consent, which is the hardest to get.”    joanne.payne@rbi.co.uk lisa.pilkington@rbi.co.uk