THE FRIDAY 5: Walmart Subject of Fed Lawsuit; Trader Joe's, Yesway in Expansion Mode

1. Federal Agency Slaps Walmart With Lawsuit

The last week of the calendar year and the first few days of a new year are typically quieter than the preceding period in the grocery world, but some industry news emerged this week that caught people’s attention as 2025 got underway. PG readers were interested in a lawsuit filed against Walmart and payments platform Branch by the Consumer Financial Protection Bureau (CFPB), contending that the retailer illegally opened costly deposit accounts for least one million delivery drivers. The federal agency claims that the drivers were forced to use those accounts and faced challenges in retrieving their earnings and paying fees.

“Walmart made false promises, illegally opened accounts and took advantage of more than a million delivery drivers,” declared Rohit Chopra, CFPB’s director. “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees.”

Walmart and Branch denied the accusations. In a statement emailed to PG, Walmart responded: “The CFPB’s rushed lawsuit is riddled with factual errors and contains exaggerations and blatant misstatements of settled principles of law. The CFPB never allowed Walmart a fair opportunity to present its case during their rushed investigation. We look forward to vigorously defending the company before a court that, unlike the CFPB, honors the due process of law.”

2. C-Store Chain Yesway on the Move

The expansion of the Allsup’s c-store banner operated by Yesway also garnered clicks this New Year’s holiday week. The chain shared that it is unveiling three new Allsup’s locations in Texas and two new sites in New Mexico.

The 6,277-square-foot stores are open 24 hours a day and sell a variety of groceries and foodservice items in addition to fuel. Most locations also include a beer cave, Western Union services, ATMs, and cryptocurrency and digital currency ATMs.

"We could not have achieved this swift pace of growth in 2024 without the relentless efforts and exceptional dedication of our talented teams. I extend our heartfelt thanks to every one of them," noted Thomas Brown, chief real estate officer at Yesway. "Their hard work and commitment have been instrumental in reaching this milestone. We look forward to serving our newest customers in New Mexico and Texas in 2025 and establishing ourselves as trusted members of their communities. We are genuinely grateful for the warm welcome and support we have received from everyone. Our commitment to excellence and community engagement will remain at the forefront as we continue to expand and innovate."

At this time, Yesway operates 440 stores across Texas, New Mexico, South Dakota, Iowa, Kansas, Missouri, Wyoming, Oklahoma and Nebraska, under the Allsup’s and Yesway banners.

3. Trader Joe’s Dishes on ’25 Plans

Trader Joe’s is picking up where it left off after a flurry of store openings in 2024. The Monrovia, Calif.-based grocer reported this week that it aims to join dozens of new communities this year.

Among other locations planned for 2025, Trader Joe’s will soon welcome shoppers in Hoover, Ala.; Northridge, Calif.; Sherman Oaks, Calif.; Tarzana, Calif.; Rockville, Md.; Staten Island, N.Y.; Berwyn, Pa.; Washington, D.C.; Murfreesboro, Tenn.; Bellingham, Wash.; and Seattle, Wash. Just before the Christmas holiday, Trader Joe’s opened an output in Alpharetta, Ga.

Meanwhile, Trader Joe’s fans all over the country can vote online for their favorite store brand product. The retailer’s Annual Customer Choice Awards program is open through Jan. 9. “For the 16th year in row, we’re asking you to vote for your favorite TJ’s products. This year, we’re including a new category — Favorite NEW product — bringing the total number of voting categories to eleven,” the retailer shared on its website.

4. Trend-Watcher Weighs In on Tastes and Habits

If flavor trends are starting on a sour note for 2025, that can be a good thing for those who sell foods and beverages that make consumers pucker up. This week, PG readers wanted to know more about consumer interest in sour flavors ranging from citrus to vinegar and used in sauces, dressings, condiments and other applications. 

Arlin Wasserman, managing director of Philadelphia-based food strategy consultancy Changing Tastes, highlighted the sour power and other food trends on tap for the coming months. He also projects growing understanding and interest in sustainable, antibiotic-free seafood and touched on lifestyle trends set to impact CPG and grocery businesses, including the broader-scale return to offices and consumers’ penchant for bringing home prepared meals for dinner. 

“Grocers have the chance to win dinner back from restaurants, including restaurant meal delivery services and pickup business, by offering dinners for two (or two adults and two kids),” Wasserman observed, adding, “The current format and promotions around offering up individual meals for one needs a refresh, as the decades-long trend in cooking less now means we are spending more than half of our food dollars to have someone else do the cooking – and choose the recipes and ingredients.”

5. Deadly Fire at Tyson Plant

An apparent boiler explosion in a poultry facility operated by Tyson Foods made headlines this week. The fire at a Camilla, Ga., plant happened overnight and resulted in one death and several injuries, including two hospitalizations.

In response to a query from Progressive Grocer, a Tyson spokesperson affirmed that the company is working closely with local authorities to determine the cause of the blaze. “We extend our deepest condolences to their family and friends during this difficult time. Right now, we are still gathering the facts, but ensuring the safety of our team members is our top priority, and we are conducting a full investigation into the cause of the fire,” the company reported.