THE FRIDAY 5: Target, Costco Divided on DEI; Deadly Shooting in Indiana

1. DEI Initiatives on the Docket for Target and Costco

Word came in this week that Target is the latest major retailer taking a step back on its diversity, equity and inclusion (DEI) initiatives. The company is concluding its three-year DEI goals and its Racial Equity Action and Change (REACH) initiatives, and will also stop all external diversity-focused surveys, including the Human Rights Campaign’s Corporate Equality Index. 

Target says it will ensure its employee resource groups are focused on development and mentorship, while also evaluating its corporate partnerships to ensure they are directly connected to its roadmap for growth. Target’s “Supplier Diversity” team will now be known as “Supplier Engagement,” which the retailer says will “better reflect our inclusive global procurement process across a broad range of suppliers, including increasing our focus on small businesses.”

While Walmart made a similar move aimed at rolling back its DEI initiatives in late November, Costco Wholesale revealed last week that its shareholders rejected a proposal urging the company to evaluate risks posed by its DEI practices. More than 98% of shareholders voted against the proposal during their annual meeting on Jan. 23.

Costco remains in the minority of retailers making such moves, as Target and Walmart joined a growing list of businesses stepping away from DEI programs targeted by conservative groups. Other brands scaling down or dropping their DEI efforts include Meta, Amazon, Molson Coors, Tractor Supply, Caterpillar, John Deere, Lowe’s, Ford, Toyota and Harley-Davidson. 

2. Deadly Shooting at Martin’s Super Market

Three individuals are dead following a shooting that occurred at a Martin’s Super Markets location in Elkhart, Ind. Officers from the city’s police department and other first responders arrived at 575 East Jackson Boulevard to find two shooting victims inside the store. Both individuals were pronounced dead at the scene. 

Elkhart Police Department officers engaged the shooting suspect outside the store. Two police officers sustained gunshot wounds, and the alleged shooting suspect was shot and killed. The motive for the shooting is unclear.

“Our team feels immeasurable sadness as we mourn yesterday’s tragedy and the unimaginable loss of lives. We are working to best support the impacted families, our Associates, the first responders, and the entire Elkhart community,” Martin’s posted on its Facebook page. “We are thankful for the quick action of our Associates and police officers, and we’ll continue to work alongside police to support their investigation.”

3. Expansion in the Works for Sprouts, Kroger and Erewhon

Readers were interested this week in expansion news from Sprouts Farmers Market, which is growing its footprint in Florida. The grocer’s strategic growth aims to bring more than seven new stores to locations across the Sunshine State, all of which will offer Sprouts’ signature selection of fresh and organic produce, responsibly sourced meat and seafood, and a wide variety of better-for-you products.

Meanwhile, news also came in that Kroger’s Dallas Division opened a new Kroger Marketplace location in Plano, Texas. The new 125,000-square-foot store carries an enhanced selection of products for shoppers seeking Asian flavors, with a bigger variety of current selections and new products. Additional features include a Starbucks kiosk, a Murray’s Cheese counter, a fuel center with 18 fueling positions and a grab-and-go kiosk offering beverages and snacks, and an expanded general merchandise department with such products as outdoor-living products, home goods, apparel and toys.

Finally on the expansion front, specialty Los Angeles-area grocer Erewhon is widening its footprint. The upscale retailer is readying new stores in the Manhattan Beach and West Hollywood communities, as well as another outpost in nearby Glendale that’s slated to open this year.

4. Top Trends for the Summer Selling Season

At United Natural Foods Inc.’s (UNFI) recent Spring and Summer Selling Show, in San Diego, the distributor’s experts discussed current trends and emerging growth opportunities across the grocery retail industry. These trends included the following: 

1. Retail media is projected to grow more than 24% annually between 2024 and 2028.
2. Private label brands are estimated to grow approximately 40% over the next six years.
3. Fresh product growth is currently outpacing the rest of the store.
4. Natural/organic and functional food/beverages are expected to grow around 4% annually over the next four years.
5. Creating a differentiated experience is key to success for grocery retailers, regardless of size.

5. Whole Foods CEO Now In Charge of Amazon Grocery

Whole Foods Market CEO Jason Buechel will take on expanded responsibility within parent company Amazon after being named VP of Worldwide Grocery Stores while maintaining his current role at Whole Foods. 

Buechel will now oversee the collective grocery offering across Amazon Fresh, Whole Foods Market, Amazon Go and Grocery Partnerships.

In a message to the company revealing Buechel's expanded role, Worldwide Amazon Stores CEO Doug Herrington wrote: “In his time as CEO, Jason has unlocked our ability to make high-quality natural and organic groceries more affordable and accessible to customers, helping WFM achieve record sales growth and expand to over 535 locations.” 

Buechel has been with Whole Foods since 2013.