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Supermarket chain Kroger plans to lower grocery prices by $1 billion after the completion of its proposed $25 billion merger with smaller rival Albertsons, according to reporting from Reuters.Kroger had previously promised to lower grocery prices by $500 million at Albertsons locations.The major grocery merger was first announced in October 2022 but has yet to move forward. Last month, the proposed merger was halted pending a Colorado District Court ruling on a lawsuit filed to block the deal. The trial is set to begin on Sept. 30.By Chloe Riley [Extracted from the article]

Target will close its only location in East Palo Alto, Calif., reports KGO-TVin San Francisco.The store will be powered down in September, leaving the city with just one pharmacy and a few grocery options to serve a population of 28,000.Target has not responded to a request for comment, but the retailer did tell KGO-TV that the store had been underperforming.The city has been working on a new economic development plan. The shopping plaza where the Target is located also has an IKEA, Home Depot, and a Nordstrom Rack.By Bill Wilson [Extracted from the article]

Chase has announced an expansion of its partnership with DoorDash, which will now include benefits for grocery, convenience, and non-restaurant stores. Chase Sapphire and other eligible Chase cardmembers will receive recurring benefits on orders from these stores on DoorDash. Additionally, cardmembers will have access to a complimentary DashPass membership, which offers deals, members-only benefits, and reduced delivery fees. DashPass members save an average of $5 on every eligible order and have saved over $10 billion globally since its launch in 2018. [Extracted from the article]

Walmart continues to be on top of the leaderboard when it comes to grocery retailers by dollar share, according to the latest Numerator data.Walmart currently holds a 21.4% market share over the last year, an increase from the year before when it claimed 20.8%.Kroger comes in at No. 2 at 8.9%; however, the grocer's market share has dropped over the last three years after it held a 9.5% share between July 1, 2021, and June 30, 2022.Costco (8.3% market share), Albertsons (5.5%), and Sam's Club (4.3%) round out the top five.By Bill Wilson [Extracted from the article]

Inmar Intelligence is partnering with Northeast Grocery Inc. to launch Northeast Grocery Shopper Link, an omnichannel retail media network. This network will offer advertising and media activations across Northeast Grocery's nearly 300 stores, with managed service and self-service buying models. Advertisers will have access to tools for launching offsite media campaigns, as well as automatic cross-channel reporting and real-time campaign performance tracking. Diane Colgan, senior vice president of marketing at Northeast Grocery Inc., expressed excitement about the collaboration and the opportunity for brands to effectively engage with shoppers. [Extracted from the article]

According to a report from Kroger-owned data analytics firm 84.51°, only 17% of grocery shoppers are knowingly using artificial intelligence (AI) to assist with their shopping. An additional 10% are unsure if they are using AI or not. The majority of respondents (74%) stated that they are not using AI for grocery shopping. Among those who do use AI, the majority use it before shopping (93%), while shopping (82%), and after shopping (57%). Early adopters of AI use it for finding deals (71%), comparing prices (58%), creating shopping lists (44%), and meal planning (42%). [Extracted from the article]

Walmart and Costco have agreed to Canada's grocery code of conduct, joining other retailers in an effort to keep grocery prices down and promote fair negotiations between suppliers and retailers. The addition of these two major retailers is seen as a step towards bringing more fairness, transparency, and predictability to Canada's grocery supply chain and benefiting consumers. The code is set to be officially enacted next summer. Grocery prices in Canada remain high, with suppliers warning of potential price increases of up to 40% this summer and fall. Loblaw Companies Ltd., initially hesitant, has also announced its support for the code. [Extracted from the article]

Preliminary data from Numerator shows that 13% of shoppers who made a purchase on Amazon Prime Day bought groceries. The report also reveals that 25% of shoppers purchased home goods, 24% purchased household essentials, and 14% purchased pet products. The average order value was $60.03, with an average household spend of about $126. The majority of shoppers were high-income, suburban females aged 35 to 44, and many said that Prime Day was their primary reason for shopping. Competitors like Walmart, Target, and Best Buy are also offering sales, and 53% of shoppers compared prices before making a purchase. [Extracted from the article]

According to a recent report by Grocery Doppio, nearly all shoppers (97%) who are taking GLP-1 inhibitor drugs like Ozempic have reduced their grocery spending by an average of 11% this year. The report also highlights that consumers have decreased their purchases of snacks, confectionery, prepared baked goods, and sugary beverages. In response to this trend, grocers are adjusting their product assortment, increasing health-oriented digital marketing, and providing in-store nutritional education. Overall, grocery sales have increased by 3.8% to $458.5 billion in the first half of 2024, with online sales accounting for 13.3% of all grocery sales. [Extracted from the article]

Amazon has opened a new brick-and-mortar Amazon Fresh store in Eatontown, N.J., signaling a fresh start for the company's grocery chain. This comes after facing criticism and lawsuits for announcing new stores and not opening them. Similar signs of progress have been reported in Gaithersburg, Md., and Alexandria, Va., where Amazon Fresh stores that were previously abandoned are now back in the works. While opening dates have not been announced, Amazon Fresh is currently hiring for positions at these locations. [Extracted from the article]

Over 6,000 workers at Food4Less, a grocery store chain in Los Angeles County, threatened to go on strike in early June. However, a tentative deal has been reached between the workers and Kroger, the owner of Food4Less. The details of the agreement have not been disclosed. The workers were demanding higher pay and safety improvements. According to the union, Food4Less employees receive fewer hours, benefits, and lower wages compared to Kroger-owned Ralph's stores in the same area. The workers were also concerned about temporary positions being used as a union-busting tactic. The proposed deal includes salary increases and no increase in employee health insurance costs for three years. [Extracted from the article]

Amazon has announced that its upcoming Prime Day event in July will include special deals for grocery items. The event, which will run from July 16-17, will feature millions of deals across various categories. As part of the early promotions, Prime members can receive coupons for $15 off a $75-plus purchase at Amazon Fresh physical stores. Additionally, Prime customers and those with a registered EBT card can receive three free months of the Amazon grocery subscription, which offers unlimited grocery delivery on orders over $35. [Extracted from the article]

Grubhub has partnered with Albertsons Cos., a national grocer, to bring nearly 1,800 of its stores to the Grubhub Marketplace. This is Grubhub's first partnership with a national grocer and includes Albertsons' various banner stores. The deal allows customers to order fresh produce, household essentials, and regional favorites from Albertsons stores through Grubhub. Grubhub's entry into the grocery delivery market comes at a time of change in the industry, with competitors like Instacart and DoorDash also expanding their services. [Extracted from the article]

Limited-assortment grocery chains Aldi and Grocery Outlet Bargain Market are experiencing significant growth in foot traffic, surpassing their competitors. This growth can be attributed to their low prices, achieved through the use of private-label brands and fewer in-store amenities. Despite their expansion, the average number of visits to their individual locations has also increased, indicating strong demand. Additionally, both chains have seen an increase in loyalty rates, with nearly a third of shoppers classified as loyalty customers. As consumers continue to seek ways to save money, these grocers are well-positioned for further growth. [Extracted from the article]

DoorDash has announced its Summer of DashPass weekly deals, offering discounts from restaurants and grocery stores for members of its premium service. This year, there are over 100,000 deals at small and medium-sized businesses, representing a higher proportion of local offers than ever before. DashPass subscriptions cost $9.99 per month and include free delivery for purchases over $12. The deals run from June to July and include discounts on orders from various retailers and restaurants, as well as the chance to win prizes through a sweepstakes. [Extracted from the article]

According to the Brick Meets Click/Mercatus Grocery Shopper Survey, online grocery sales in May 2024 declined by 0.4% compared to the previous year, reaching $6.8 billion. This decrease was primarily due to a 6% decline in pickup order frequency and a slight decline in average order value. However, delivery sales remained relatively stable, with a 0.2% increase, and the monthly active user base for delivery expanded. The report also noted a decline in order frequency across all receiving methods. Ship-to-home sales increased by 9%, while pickup sales dropped by 3.9%. The report concluded that the growth in the monthly active user base was largely driven by the return of previously lapsed users. The supermarket sector experienced a decrease in its online customer base, while Amazon's pure-play services and mass merchandisers saw strong gains. [Extracted from the article]

Meijer, a retail company, is set to open its third smaller format grocery store in Noblesville, Indiana. This new store, which will open on July 11, will offer a range of products and services including produce, meat, bakery, deli, pharmacy, health and beauty, baby and pet supplies, and more. The store will also provide additional services such as mPerks, Shop and Scan, Meijer Home Delivery, and Pickup. Meijer currently employs over 10,000 team members in Indiana and is offering job opportunities at the Noblesville location. [Extracted from the article]

Illinois is on track to eliminate its 1% tax on groceries, as the State Senate has approved a $53.1 billion state budget that includes a provision to discontinue the tax. However, the original proposal by Governor J.B. Pritzker was modified to allow municipalities time to adjust for the loss of revenue. Chicago is expected to lose between $60 million and $80 million in tax revenue, while Rockford and Peoria would lose $7 million to $8 million and $4 million, respectively. A compromise has been reached that delays the tax cut until January 1, 2026, and prevents any new municipal tax from exceeding the original 1% statewide tax. [Extracted from the article]

eGrowcery and CresLane have announced a partnership to provide advanced ecommerce solutions for supermarket retailers. This collaboration aims to integrate online and in-person sales channels, improving the shopping experience and operational efficiencies. The partnership offers standardized technology solutions that accelerate the deployment of digital and store technologies, enhance promotional management, and improve customer experiences. Food Depot, a supermarket chain in Georgia, has already benefited from this collaboration, experiencing faster updates, accurate financial reconciliations, enhanced services, and increased operational flexibility. Retailers, wholesalers, and suppliers interested in learning more about this partnership can find additional information by clicking the provided link. [Extracted from the article]

According to the U.S. Department of Labor, grocery prices in the United States decreased in April for the first time in a year. The overall food index remained unchanged, but there were decreases in the prices of meats, poultry, fish, eggs, fruits and vegetables, and nonalcoholic beverages. However, cereals and bakery products saw a slight increase in price. The Consumer Price Index for All Urban Consumers increased by 0.3% in April. [Extracted from the article]

H-E-B remains the top grocery store chain in Houston, surpassing Kroger in 2023. Earlier reports had mistakenly stated that Kroger had overtaken H-E-B in the Houston market, but updated data from Chain Store Guide shows that H-E-B actually maintained 24.9% of the market compared to Kroger's 22%. Walmart came in third place with 19.7%, followed by Costco and Sam's Club. Other grocery stores in the top 10 include Food Town, Fiesta Mart, Safeway (Randall's Food & Drug), and Whole Foods. [Extracted from the article]

According to a study by the U.S. Department of Agriculture (USDA), Houston had the highest grocery food inflation rate in 2023, at 7.8%. Boston followed at 7.0%, and Philadelphia at 6.3%. The overall grocery food inflation rate in the U.S. was 5%. The USDA attributes the variation in costs to factors such as overhead expenses, consumer purchasing patterns, and the types of foods purchased in each area. [Extracted from the article]

Grocery Outlet's stock experienced a significant decline after the release of its Q1 earnings report, which revealed lower earnings forecasts due to disruptions in implementing new technology. The company's stock dropped over 22% from $25.98 per share to $20.16 per share. Grocery Outlet also reduced its forecast for adjusted earnings per share, comparable store sales increase, gross margin, and adjusted EBITDA. Despite positive sales results, gross margin dropped due to difficulties with technology upgrades. The company remains committed to resolving these issues and is optimistic about its long-term growth potential. [Extracted from the article]

Amazon is closing a grocery fulfillment center in San Francisco's Dogpatch area. The facility, which operated as an UltraFastFresh depot for last-mile grocery delivery, employed 85 workers. This closure is part of Amazon's efforts to optimize its logistics as e-commerce growth has slowed due to the pandemic. Amazon has also closed other warehouses in the city and plans to consolidate its operations into a new logistics center in Showplace Square, although it is unclear if grocery delivery will be included at the new facility. [Extracted from the article]

Publix remains the most popular grocery store in Miami, holding nearly 47% of the market share in 2023. With 245 locations in the Miami metro area, Publix reported over $9.9 billion in sales last year. Walmart and Costco followed as the second and third most popular grocers, with 15% and 8% of the local market share, respectively. Publix's dominance in South Florida has led to increased capital spending for store openings, remodels, and technology improvements. The chain opened two new stores in Hialeah and West Kendall last year and plans to open more within and outside of Florida this year. [Extracted from the article]

According to a report from Axios, Albertsons, operating as Jewel-Osco in metro Chicago, held the largest market share in 2023 with 22.6%. Walmart came in second with 16.9%, followed by Costco with 10.9%. Other notable grocery chains in the top 10 list included Roundy's Supermarkets, Target, Sam's Club, Meijer, Whole Foods Market, Aldi, and Kroger. Jewel-Osco operates 176 locations in metro Chicago, while Aldi runs 160 locations but captures fewer shopping dollars. In a survey conducted by Axios, Trader Joe's was voted as the favorite store in Chicago. [Extracted from the article]

The article focuses on an increase in automated micro-fulfillment centers (MFCs) by retailers for automated fulfillment for grocery delivery. It presents views of Sylvain Perrier, president of the e-commerce grocery platform company Mercatus Technologies, on an increase in online grocery shopping. It also highlights the benefits of MFCs for retailers on business growth, as of March 2021.

The article analyzes topics discussed by panelists during the 25th annual Financial Analysts Roundtable conducted by the journal "Supermarket News." Topics discussed in the panel include information on analysts participating, comprehensive safety measures taken by stores after the advent of COVID-19, potential for a more promotional grocery sales environment in 2021 and consumers' shift to online purchases that prompted grocery retailers to expand their e-commerce offerings.

The article reports that home delivery and store pickup online grocery sales reached a new 30-day record during the height of the coronavirus crisis. Topics include Brick Meets Click said the month-over-month sales growth reflects a 33 percent increase in the monthly number of online orders; grocery retailers have been ramping up their labor forces; and Whole Foods Market, for instance, is holding a spot in line for seniors to coronavirus who place online grocery pickup orders.

Walmart and Loblaw have not yet agreed to Canada's grocery code of conduct, which establishes rules for negotiations between retailers and suppliers. The code also includes a dispute resolution process. Walmart and Loblaw have expressed concerns that the code would raise food prices, with Loblaw estimating a $1 billion increase in costs. The implementation of a grocery code adjudicator office has been put on hold due to their stance. However, other retailers, such as Sobeys, believe that the code could help reduce prices for consumers. The House of Commons committee has threatened to recommend legislation if Walmart and Loblaw do not join the code. The code is currently being reviewed and may be revised for clarity. Both Loblaw and Walmart have stated that they are actively engaged in the process. [Extracted from the article]

Canadian lawmakers are seeking to address food inflation by introducing more competition into the grocery sector. Industry Minister Francois-Philippe Champagne has identified 12 grocers, primarily based in Europe, to target. This move is seen as a challenge to Canada's three largest grocery companies, Loblaw, Metro, and Empire, which have reported record profits. The latest inflation data shows that food prices in Canada have risen by 23% since before the COVID-19 pandemic. A report from Canada's Competition Bureau also highlighted the need for more competition in the sector to control grocery prices. [Extracted from the article]

Grubhub has announced a partnership with Mercato, an online marketplace for independent grocery stores, to expand into the grocery delivery business. Over 950 retail merchants will be added to the Grubhub Marketplace, with all merchants becoming available to users over the next few weeks. The partnership will allow Grubhub users to shop from a wide range of independent grocery stores across 38 states and over 320 cities, including popular favorites like Citarella, Kol Tuv Kosher Foods, Boston Public Market, and Eataly. Grubhub users can access the grocery section through the company's app and website, and all of Mercato's merchant supply will also be available on Grubhub+. Independent grocery stores interested in participating can visit www.mercato.com/merchant. [Extracted from the article]

According to a forecast by the U.S. Department of Agriculture, food prices in most categories are expected to increase in 2024. The overall food prices are predicted to rise by 2.5%, while food-at-home prices are expected to go up by 1.6%. In February 2024, prices for beef and veal remained unchanged, while poultry and fish and seafood prices dropped. Retail egg prices increased by 8.4% but were still lower than the previous year due to a reduced egg-laying flock. Beef and veal, eggs, and sugar and sweets are projected to have the highest price increases for the year. [Extracted from the article]

Associated Wholesale Grocers, Inc. has expanded its partnership with Instacart to offer ecommerce and same-day delivery solutions to member retailers. This collaboration allows an additional 2,300 member retailer locations to join Instacart's tech suite, in addition to the 800 AWG member retailer locations already using Instacart. Instacart will provide retailers with in-store technology solutions, including Caper Carts, which use computer vision and AI to identify items placed in the cart. Associated Wholesale Grocers, Inc. is a cooperative food wholesaler serving independently owned supermarkets across 32 states. [Extracted from the article]

Tennessee is considering a proposal to eliminate its 4% statewide tax on grocery purchases. Currently, Tennessee is one of 12 states that still taxes residents on groceries. The bill, filed by Nashville Rep. Aftyn Behn, aims to save households an average of $400 per year, but it would cost the state between $700 million to $1.1 billion annually. Behn argues that food should not be a financial burden on hardworking Tennessee families. Oklahoma recently eliminated its 4.5% grocery tax, and Illinois is also considering cutting its 1% tax. Other states that tax groceries include Mississippi, Kansas, Idaho, South Dakota, Alabama, Hawaii, Virginia, Utah, Arkansas, and Missouri. [Extracted from the article]

San Francisco Supervisor Dean Preston has proposed a resolution to study the possibility of bringing a full-scale grocery store to the Tenderloin district. Currently, residents in the area have to travel an average of half a mile to access a full-service grocery store. The resolution acknowledges that while public transit is available, it can be difficult for older shoppers and people with disabilities to navigate with groceries. Previous efforts to attract a grocery store to the area have failed, and other municipalities, such as Chicago, have considered opening municipally owned grocery stores in underserved areas. The resolution would require city agencies to compile a report on previous efforts and potential sites for a new store within 90 days. [Extracted from the article]

DoorDash has expanded its SNAP/EBT payment offering by partnering with additional grocers. Since launching this capability in 2023, over 1.1 million consumers have added their SNAP/EBT cards to the platform. With the new grocery partners, DoorDash now supports SNAP/EBT payment at over 6,000 locations nationwide for on-demand delivery of eligible grocery items. DoorDash has also provided statistics on the impact of their service, including the fact that over one in six SNAP deliveries have been made to consumers living in food deserts, and a significant percentage of deliveries have been made to low-income communities, areas with a higher rate of seniors, and areas with higher rates of people with disabilities. [Extracted from the article]

Illinois Governor J.B. Pritzker is facing opposition from municipalities over his proposal to eliminate the state's 1% tax on grocery purchases. The Illinois Municipal League (IML) argues that this tax cut would result in a loss of revenue for cities across the state, with the total loss estimated to be $325 million annually. The IML is urging elected officials to oppose the tax cut and highlights that a previous temporary suspension of the tax during the COVID-19 pandemic was different because the state covered the lost revenue. If the tax is eliminated, it would cost cities like Chicago, Rockford, and Peoria millions of dollars in revenue. This issue is not unique to Illinois, as other states have also faced scrutiny over grocery taxes, with Oklahoma recently eliminating its 4.5% grocery sales tax. Currently, only 12 states impose taxes on grocery purchases. [Extracted from the article]

Oklahoma Governor Kevin Stitt has signed a bill eliminating the state's 4.5% tax on grocery purchases, making Oklahoma one of the few states to no longer tax groceries. The tax rate on groceries in Oklahoma was among the highest in the nation, with only three states having a higher rate. The elimination of the grocery tax is expected to save the average Oklahoma household around $700 per year. The move was supported by the majority of the legislature and is being hailed as the largest single-year tax cut in Oklahoma's history. [Extracted from the article]

The Washington State House of Representatives has approved a measure to protect grocery workers in the event of a merger between Kroger and Albertsons. If the merger is approved, 413 stores will be sold to C&S Wholesale Grocers, affecting 107 locations in Washington. The legislation requires that grocery workers be retained for at least six months after the merger, and if they receive satisfactory performance evaluations, they must be offered continued employment. Additionally, workers would receive compensation if they are terminated. This measure differs from a similar bill vetoed by California Governor Gavin Newsom, which would have provided severance to grocery workers affected by the Kroger-Albertsons deal. [Extracted from the article]

According to the Brick Meets Click/Mercatus Grocery Shopper Survey, the online grocery market saw a 1.8% increase in January, reaching $8.5 billion. However, this growth was tempered by a decline in order frequency and a flat average order value compared to the previous year. Mass retailers like Walmart saw an increase in market share, while supermarkets experienced a contraction. Ship-to-home delivery experienced the highest sales growth, while pickup remained the most popular fulfillment method. The report also noted that the reduction in SNAP payments and changing buying behaviors influenced the market. Regional grocers are facing increasing pressure to meet customer demands and compete online. [Extracted from the article]

According to the Brick Meets Click/Mercatus Grocery Shopper Survey, the online grocery market saw a 1.8% increase in sales in January, reaching $8.5 billion. However, this growth was tempered by a decline in order frequency and a flat average order value compared to the previous year. Mass retailers expanded their share of the market, while supermarkets contracted. Ship-to-home sales experienced a 7.8% increase, while delivery sales were down slightly by 0.5%. Pickup remained the most popular fulfillment method, but its market share decreased. The report also noted that changes in buying behavior were expected due to reduced SNAP payments and a flight-to-value trend. Regional grocers are facing increasing pressure to meet customer demands and compete online. [Extracted from the article]

Compare Foods, a grocery store based in Charlotte, North Carolina, has gained a reputation for its community engagement and focus on fresh foods and Latin American products. The company, led by owner Omar Jorge, has been involved in various community activities, including health screenings, hunger relief efforts, and support for local schools. Compare Foods has also partnered with local hospitals to host free health screenings and has been active in supporting COVID testing and vaccinations. Additionally, the store has made scholarship donations and provided backpacks to students. While the store primarily targets customers of Mexican, Caribbean, and South American descent, it attracts a diverse range of customers. [Extracted from the article]

President Joe Biden criticized corporations for artificially inflating prices, particularly at grocery stores, during a political rally in South Carolina. He stated that while inflation in the US has decreased, there are still too many corporations "ripping people off" through price gouging and other tactics. A study by the National Bureau of Economic Research found that the cost of grocery staples like eggs and milk significantly influences Americans' views of inflation, despite these costs being excluded from the inflation index that policymakers focus on. Consumer Affairs magazine also reported that grocery price hikes vary greatly from state to state, with Pennsylvania experiencing the highest increase at 8.2% and Colorado having the lowest at 2.9%. [Extracted from the article]

The article presents an interview with workers-owners Dave Higgins and Cody Frost of Rainbow Grocery Cooperative. Topics include discussing benefits of being a worker-owner, explaining the decision-making process within the cooperative, and talking about the cooperative involvement in community through local arts and education nonprofits.

The article discusses the potential challenges and opportunities that the grocery industry may face in 2024. One analyst expresses concern about the possibility of price deflation and increased competition from major players like Walmart, which could impact profit margins for traditional supermarket operators. However, another analyst highlights potential opportunities in areas such as health and wellness and personalized ecommerce relationships. The pending merger of Kroger and Albertsons is also mentioned, with the expectation that it will likely be approved by regulators in 2024. The article concludes by mentioning upcoming changes for Supermarket News, including a merger with Winsight Grocery Business. [Extracted from the article]