• by Sarah Mahoney  @mahoney_sarah, April 11, 2016

Skeptics and fans alike are one step closer to getting a peek at Whole Foods Markets’ new 365 concept, in advance of the first store opening next month.

And with its emphasis on private-label products and more affordable groceries, it can’t come soon enough: A new report from Deutsche Bank shows Trader Joe’s is in stealth mode, giving Whole Foods a significant pounding on prices. 

The 365 is slated to open in Los Angeles’ Silver Lake neighborhood next month. Whole Foods describes the store as a “streamlined, quality-meets-value” experience in an announcement.

The Austin, Tex.-based retailer says shoppers at the new store can expect to grab a cold beer or hot coffee from the Allegro Coffee Company, a vegan meal from By Chloe, or use the new teaBOT kiosk, which offers custom grab-and-go tea in less than 30 seconds. (People can choose a combination of up to three selections types, from a menu of 18 tea types.)

And through Instacart (Whole Foods is a major investor in the delivery start-up), online ordering is expected to be a big part of 365’s appeal, as are a wide selection of 365 products, its private-label products.

But the Deutsche Bank pricing analysis suggests that even those products might not strike Gen Y shoppers as a particularly good value. Deutsche, which currently rates Whole Foods as a “hold,” found that a basket of 77 items was 21% cheaper at Trader Joe’s, indicating that Trader Joe’s may be investing more in price cuts to catch Whole Foods off guard. The difference was most pronounced in perishables, with Whole Foods’ prices typically 30% higher. And it offered a better price on just 9% of the items.

There’s even a significant gap — about 15% — between Whole Foods’ 365 products and Trader Joe’s store brand. “The disparity concerns us and leads us to believe TJ’s has once again reduced prices across the board,” it writes, “a function of reaching a step-up in scale at the 500 unit level.”

Two additional 365 locations are scheduled to open this year, in Bellevue, Wash., and Portland, Ore. And up to 10 new stores are expected to open in 2017.