Grocery wholesaler Supervalu will open its first natural-foods supermarket in January, with plans for more.
The first Sunflower Market will open in Indianapolis and serve as a prototype as Supervalu seeks a foothold in the growing organic foods segment, which is projected to reach $32.3 billion by 2009.
Sunflower Markets will be relatively small at 12,000 to 15,000 square feet, with 8,000 to 12,000 items across grocery, frozen, dairy, liquor (beer and wine), wellness and produce departments, as well as a deli, bakery and café.
Most of the produce will come from Supervalu’s W. Newell & Co. division. A new private-label brand, Nature’s Best, will include 100 items.
Sunflower will emphasize value pricing over strict organics. That plays to mainstream consumers, since 96% of shoppers buy organic produce occasionally, and 66% buy organic packaged goods, per Supervalu’s research.
“Across the nation, we are seeing a growing demand for affordable organic foods with exceptional taste and nutritional quality,” said Supervalu CEO Jeff Noddle in a statement. “Sunflower Market draws on our expertise in small-box formats, and leverages our supply chain expertise, which enables us to deliver outstanding natural and organic products at a price point consistent with consumer expectations.”
