THE FRIDAY 5: Kroger Hit With Another Lawsuit; New Stores for H-E-B, Meijer, More

1. Giant Food, H-E-B, Meijer, Others Expand Footprints

Expanding grocery footprints were on PG readers’ brains this week, starting with a new Giant Food location in Bowie, Md. The store, which opens on March 28, will feature full-service meat and seafood departments, an expanded gourmet cheese selection, expansive prepared food offerings, freshly made sushi, and a Starbucks. 

Vallarta Supermarkets is also expanding in the Southern California city of Hemet, following openings over the past several months in Modesto and Clovis, Calif. Now in its 40th year of operation, Vallarta says it is committed to serving diverse communities throughout the region.

Additional reported openings this week include New Seasons Market’s 22nd location in Hillsboro, Ore.; a new H-E-B planned for Denton in North Texas; and three new Meijer superstores in the communities of Austintown, Medina and Richmond Heights in Ohio, which are set to open May 8. 

Finally, readers were interested in the opening of a new Fresh Market near Chicago this week. PG Senior Editor Lynn Petrak was on the ground for the ribbon-cutting ceremony in Algonquin, Ill., which marked the grocer’s second opening in the Chicagoland area in recent weeks.

2. Wonder Brand Goes Beyond the Bread Aisle

CPG news from the classic Wonder brand made waves this week as the company announced the launch of its first-ever snack cake line. The brand expansion promises a fresh take on classic indulgences, with treats including frosted mini donuts, iced honey buns, creme-filled cupcakes and more.

Ashley Hornsby, the company’s director of brand management, said the launch will “bring that same sense of nostalgia and joy to a new category, giving consumers a delicious way to enjoy Wonder beyond the bread aisle."

3. Kroger's New Legal Woes; Names New Division President

Reports surfaced this week that Kroger has been hit with another lawsuit related to its failed merger with Albertsons Cos. A few months after Albertsons sued its would-be partner for breach of contract after a judge blocked the deal, C&S Wholesale Grocers is reportedly heading to court in Delaware.

C&S is claiming that Kroger should pay a $125 million termination fee from the scuttled merger. C&S had a major stake in the deal, planning to pick up nearly 600 Kroger and Albertsons stores, distribution centers and other assets as part of a divestiture plan. 

Per a Wall Street Journal report, C&S argued that Kroger needs to meet the terms of an agreement. "Kroger failed to identify any reason for its refusal to pay the termination fee it owed C&S — because there is none," C&S asserted in a legal filing. 

In an email to PG, Kroger maintains that it doesn’t owe the fee. "It is disappointing that C&S has decided to file a baseless lawsuit when it is clear that C&S forfeited its right to a termination fee and has no reasonable claim to any damages. Kroger will vigorously defend itself," a company representative wrote. 

Meanwhile, readers were also interested in news this week that Kroger named a new president for its Dallas division. Rudy DiPietro, who spent 21 years at Ahold Delhaize USA, will succeed the retiring Keith Shoemaker, effective March 29.

4. Warehouse Clubs Go Private

Private label news garnered clicks this week as the three largest warehouse clubs in the U.S. expand their selection of store-brand products. Indeed, shoppers who visit Costco, Sam’s Club or BJ’s Wholesale today have a broader assortment of private-brand products from which to choose. 

The amount of each retailer’s private label products filling the shopping carts of members has been quite noticeable, both in person and in the sales data. At Sam’s Club, the expansion of its Member’s Mark private brand has been a focus, while BJ’s is on track to reach the 30% penetration rate goal set for its assortment of private brands.

Costco, meanwhile, reported in a December earnings call that its Kirkland Signature own brand has a penetration rate of 33%. 

5. Walmart Adding to Its Convenience Business

Walmart has big plans for its convenience services this year, and is poised to open or remodel more than 45 fuel stations across the United States. With the new openings, Walmart will have more than 450 fuel and convenience locations across 34 states.

"We're continuing to invest in our nationwide, physical store footprint. By adding dozens of fuel and convenience stations this year, we are bringing even more value to our customers,” said Dave DeSerio, VP of fuel and convenience, Walmart U.S. "Customers shop Walmart for our everyday low prices and convenience offerings, and fuel stations are another example of us responding to our customer and member needs."