THE FRIDAY 5: Fallout From Yet Another Recall; Amazon’s Latest Grocery Concept Goes Live

1. Frozen Waffle Recall Rocks Walmart, Kroger and Other Retailers

Food recalls and listeria outbreaks have been top of mind for many PG readers over the past several weeks. Another potential listeria outbreak hit the food retail and CPG worlds this week following the voluntary recall of certain frozen waffle products produced by TreeHouse Foods. The affected waffle products were being sold under Walmart’s Great Value brand, Target’s Good & Gather brand, Kroger’s Simple Truth private label, and many others.

This is the second major recall to hit food retail due to Listeria contamination this month. Approximately 12 million pounds of ready-to-eat chicken products were recalled by BrucePac of Durant, Okla., due to Listeria monocytogenes contamination found during routine tests by the U.S. Department of Agriculture’s Food Safety and Inspection Service (FSIS). According to the agency, the products were produced between June 19 and Oct. 8, then shipped to other establishments and distributors nationwide. 

Grocers affected by that recall include Albertsons Cos., H-E-B, Trader Joe’s, Meijer, Raley’s, Kroger and others.

2. Amazon Debuts New Grocery Concept

PG Senior Editor Lynn Petrak made a trip to the new Amazon Grocery small-format store adjacent to a Whole Foods Market in Chicago this week. The concept is designed to provide shoppers with more options and fuses many of the company’s options and services, offering traditional branded products that are not on the shelf at Whole Foods.

“We’re always looking for ways to make it easier for customers to shop for groceries, whether online or in store. We’re testing and learning with a new grocery shopping experience with a small-format store from Amazon under the same roof as Whole Foods Market in the One Chicago building,” Amazon spokesperson Jessica Martin told Progressive Grocer. “With this new concept, customers can shop their favorite natural and organic products at Whole Foods Market and get a broader product assortment from Amazon all in one trip, saving them time and money.” 

The store-near-a-store concept aligns with Amazon’s retail strategies highlighted at the recent “Delivering the Future” event in Nashville. Among other updates, Amazon shared that it is putting the finishing touches on its first automated micro-fulfillment center at a Whole Foods store in Plymouth Meeting, Pa., which will supplement products found in that market with items from Amazon.com and Amazon Fresh.

3. Target, Kroger, Dollar General Bring On the Savings

Grocers of all stripes are still focusing on offering savings to inflation-weary shoppers, and this week Kroger unveiled an expanded partnership with Inmar Intelligence that brings the grocer’s popular Cash Back program to both brick-and-mortar and e-commerce shoppers. By giving their consumers a choice between digital coupons and cash back, Kroger is positioning itself as a retailer that understands the dual importance of customization and savings. 

“Kroger is committed to delivering maximum savings to our shoppers and we are excited to expand our relationship with Inmar to provide shoppers with a choice on how to save. Since our cash back launch with Inmar in August, we have seen more than a 35% increase in the savings enjoyed by our shoppers by providing more choice on how to save,” Pete Miles-Prouten, SVP head of strategic partnerships and data ventures at Kroger, told Progressive Grocer. 

“With Inmar's Flex Offer technology, we have also simplified the offer publishing and management process for our CPG partners – enabling us to deliver more value to shoppers,” Miles-Prouten said. 

Also this week, Target announced that it is reducing prices on more than 2,000 products during the holiday season. The retailer said it is making the move to help its shoppers celebrate occasions with more budget-friendly options across several categories.

Further, Dollar General is providing discounts with storewide sales events for the holidays, with DG Deal Days set to begin on Halloween and running each week through Dec. 21. More than 6,000 items storewide will be discounted. 

4. Jewel-Osco, Rouses, Kroger Keep Growing

It was a week for store growth as many grocers unveiled new locations. The newest Jewel-Osco store was unveiled on Oct. 22 in Diamond, Ill., and reflects the latest in the grocer’s store design and assortment, spanning 62,918 square feet. The produce department, across from an onsite Starbucks and adjacent to the floral department, features a wide range of fresh fruits and vegetables merchandised in creative, eye-catching displays. From there, shoppers can browse an expanded deli department, featuring a wide variety of grab-and-go and fresh prepared foods. 

Meanwhile, Rouses Markets recently marked the grand opening of its latest Mississippi store. The 60,000-square-foot store in Biloxi is the fifth Rouses location in Mississippi and the 66th overall, further growing the company’s Gulf Coast presence. The store’s opening comes shortly after the debut of a new location in Picayune, Miss., last month.

Further west, Kroger’s Dallas division opened its newest Kroger Marketplace store, in Melissa, Texas – the company’s first new store in North Texas since 2019. The location features a Starbucks kiosk, a Murray’s Cheese counter, a fuel center with 18 fueling positions and a grab-and-go kiosk with beverages and snacks, and full-service grocery, pharmacy and expanded general merchandise, including outdoor-living products, home goods, apparel, toys and more.

5. The Pharmacy Race Heats Up

As the future of retail pharmacies remains in question, companies like Walmart and Amazon are finding ways to step in. Amazon recently shared that it is offering expanded 24/7 access to a pharmacist, and also more than doubling the number of cities where consumers can get same-day delivery of their medicines, adding capabilities in urban centers including Boston, Dallas, Minneapolis, Philadelphia and San Diego, among others. 

Amazon is offering consumers free and rapid delivery of prescription medicines via modular pharmacies located within its same-day fulfillment centers, thus leveraging the organization’s advanced logistics network and technologies. By the end of 2025, Amazon estimates that 45% of customers in the United States will be eligible for same-day delivery of their medications. 

For its part, Walmart is also expanding its prescription delivery capabilities by integrating prescription medications and general merchandise into one streamlined order for delivery. The new offering is now live in six states: Arkansas, Missouri, New York, Nevada, South Carolina and Wisconsin. 

By the end of January 2025, Walmart's Pharmacy Delivery is expected to be available in 49 states, reaching tens of millions of customers.