THE FRIDAY 5: Wakefern Buys Family-Owned NYC Banner; Kroger, Amazon Emphasize Fresh Success

1. Wakefern Makes Acquisition Move, While Northeast Grocery Is Subject of Rumors

M&A activity piqued readers’ attention this week. News broke on Aug. 7 that the retailer-owned co-op Wakefern Food Corp. is acquiring the Morton Williams 17-store chain that serves the greater New York City area. Wakefern will retain the Morton Williams banner name, which is familiar to local residents after three generations of family operations.

“The acquisition is part of Wakefern’s aggressive growth strategy to expand both its market share and wholesale distribution reach. Wakefern’s leadership team and board of directors has a vision for our cooperative that is transformative,” explained Wakefern Chairman Sean McMenamin.

Also this week, a report emerged that Northeast Grocery may be weighing its options. According to a story by the Reuters news service, sources close to the company allege that the retailer is in talks with a bank about a possible sale. Northeast Grocery tamped down some of that speculation, telling Progressive Grocer “We continually explore opportunities to grow our business in a variety of ways, including but not limited to mergers, acquisitions or otherwise. We are aware of the Reuters report, which while speculative, reflects our reputation as an industry leader in the Northeast.”

2. Eyes on Quarterly Results at Publix, Ahold Delhaize and Grocery Outlet

Readers were also keen to learn about retailers’ recent financial reports, perhaps as a harbinger of overall industry health. One story of interest to PG readers this week was focused on the balance sheet at employee-owned Publix, which posted higher sales and comps for the recently concluded second quarter.

The Florida-based grocer – which is celebrating its 95th anniversary in September – reported quarterly sales of $15.6 billion for the period, up 7.3% year over year, and notched a 6% gain in comps. Earnings also rose, up from $0.29 per share in the second quarter of 2024 to $0.42 for the most recent quarter. 

News about other retailers’ recent financial results also spurred clicks on PG’s news pages. Grocery Outlet reported a 4.5% boost in net sales and a 1.1% bump in comps for the second quarter, while revealing a downturn in its net income. Some of the losses were attributed to restructuring charges, as the company is streamlining operations by terminating some leases. 

“We’re rebalancing store growth towards a healthy mix of core versus new markets, adjusting our internal returns framework, developing more robust site selection criteria and testing several key commercial pilots to drive our performance,” remarked CEO Jason Potter.

Meanwhile, readers wanted to learn more about Ahold Delhaize’s recent quarter. The  Zaandam, Netherlands-based company turned in a strong Q2, with a 6.5% increase in net sales, fueled by an acquisition of Profi.  For the fifth straight quarter, online grocery sales surged, with double digit growth.

3. Fresh in Focus at Kroger and Amazon

PG’s Editorial Director and Associate Publisher Gina Acosta took a deep dive into The Kroger Co., as that retailer is looking beyond its merger era and focusing on three growth areas. Those imperatives include a back-to-basics focus on core grocery, deep investment in fresh-led store experiences, and empowering local divisions to drive customer-centric innovation.

Indeed, leadership in fresh food is seen as a differentiator. “Our ambition is to be the fresh destination,” asserted Jayce Crooke, grocery merchandiser at Kroger’s Fred Meyer banner. 

That point was underscored by the new president of Food 4 Less, Kendra Doyel, in a recent town hall. “We want our stores to be full, fresh and friendly every day,” Doyel added. “That starts with our associates but also requires vendor support. A better customer experience makes it better for our teams, too.”

Also on the fresh front, Amazon shared in its latest quarterly earnings call that the testing of perishable orders with other orders is serving the retail giant well. 

“We started expanding our very successful perishables pilot, where we offer customers perishables at the point of purchase when they’re ordering other items that will be delivered same day from our same day fulfillment modes. We’re seeing strong customer adoption as 75% of customers who’ve used the service this year are first time shoppers for perishables on Amazon, with 20% of customers who use the service returning multiple times within their first month,” reported CEO Andy Jassy during the July 31 earnings call.

 Overall, Amazon reported a 11% leap in U.S net sales for the second quarter ending June 30.

4. UNFI Taps New Leader for Retail Business

Also making waves this week was United Natural Foods Inc. (UNFI), which announced the appointment of David Best as its new president and CEO of retail. He steps into that key position following the departure of Andre Persaud. Best comes to UNFI from Coborn’s, Inc., where he served as president and CEO; his background also includes executive roles at General Mills and Target.

“David’s track record of driving retail innovation, his deep industry expertise, and his shopper-centric approach make him an ideal leader to help us write the next chapter of success for our retail business,” said CEO Sandy Douglas. “As a Minnesota native, his connection to the local heritage of our Cub brand and his passion for the communities we serve will be invaluable as we partner with our franchisees to drive long-term, shared growth.”

PG’s Managing Editor Bridget Goldschmidt recently sat down with Douglas in an exclusive interview during UNFI’s Holiday and Winter Selling Show at the Mohegan Sun resort, in Uncasville, Conn. Douglas shared how UNFI responded to the recent cyberattack and what it learned in the wake of that incident.

5. Grocers Ramp Up Tech Investments

PG released the results of its 2025 Grocery Tech Trends Study, which resonated among readers this week. One key takeaway is the fact that two-thirds of grocery retailers are looking to increase their tech investments this year. Among other tools and platforms, study participants reported that they are planning to add electronic shelf labels, workforce technology and artificial learning.

As tech spend grows, grocers can heed generational differences in digital shopping habits. For example, PG’s Tech Trends study confirms that younger Gen Z shoppers are very comfortable with tech and often prefer to buy online or at least get in and out of physical stores faster.

In other tech news, Albertsons was the only grocer to sign the Make Health Technology Great Again Pledge at the White House. That initiative is designed to modernize the nation’s digital health infrastructure.