Whole Foods Market shares are not doing so well at the moment.
On July 30, shares plunged 12 percent when the company did not meet its third-quarter expectations on earnings, according to Business Insider.
This could affect future sales growth — especially because Whole Foods is planning to launch a chain of cheaper stores called 365 Whole Foods. These stores are slated to open in the latter half of 2016 and double their number in 2017.
The slump in third-quarter earnings could also be due to the revelation that Whole Foods overcharged customers in New York City earlier this month. Whole Foods stock has fallen six percent over the past year.
As a result of the investigation into New York City prices, Whole Foods co-CEO John Mackey told Business Insider that he feels victimized. “It's just something that went viral in the media and it has hurt our trust and we do feel like we're victims,” Mackey said.
The 365 by Whole Foods Markets stores are expected to compete better with similar stores, such as Trader Joe’s.