THE FRIDAY 5: Walmart’s Latest Store of the Future; ALDI, Lidl Continue to Dominate
Welcome to The Friday 5, Progressive Grocer’s weekly roundup of the top news and trends in the food retail industry. Each Friday, we’ll take a look at the stories that are most important to our readers and also keep tabs on the trends that are poised to impact grocers.
1. Grocery Outlet Gives Out Free Groceries for Life
PG readers were interested this week in the unveiling of Grocery Outlet’s winners of its Free Groceries for Life sweepstakes, which offered customers the chance to win a range of prizes, including a lifetime of free groceries. The grand-prize winners, Michaele Webster of Hidden Valley Lake, Calif., and Annette Baker of Westminster, Calif., were surprised with celebrations at their local Grocery Outlet locations to notify them that they’d won the sweepstakes.
The sweepstakes ran from Jan. 8 through March 31, with Grocery Outlet randomly selecting 32 winners from all eligible entries to win a range of prizes, including the two grand-prize winners who will receive free groceries for life (valued at $240,000). Ten people won free groceries for a year (valued at $6,000) and 20 people won free groceries for a month (valued at $500).
“At Grocery Outlet we pride ourselves on being in our customers’ corner to give them the very best deals and shopping experience every single day,” said Jason Potter, Grocery Outlet CEO. “The Free Groceries for Life sweepstakes was an example of that, providing our shoppers a life-changing opportunity. I congratulate the winners and extend my thanks to the team and store operators who made this sweepstakes a success.”
2. Walmart's Busy News Week
Walmart was featured heavily in this week’s most-read news, starting with the opening of its Store of the Future concept in Cypress, Texas. The cutting-edge, technology-enhanced store opened to the public on April 30, and features innovative layouts, the latest digital shelf label technology, Walmart’s new branding and more. The retailer also offers its full range of products and services at the new location.
“The new supercenter is a testament to Walmart's ongoing commitment to investing in our store operations and our associates, so we can continue to provide exceptional service and value to our customers," said Paul Lewellen, SVP of operations. "We are proud to be in Cypress and contribute to local economic growth. We look forward to serving our customers here and continuing to build strong relationships with the community.”
Separately this week, Walmart unveiled Grow with US, a new program designed to provide U.S. small businesses with the training, mentorship and resources they need to find success with the retail giant. The voluntary four-step program gives small businesses access to Walmart’s Supplier Academy, discovery opportunities like its annual U.S. Open Call, mentorship and possible financial assistance through Walmart’s Early Payment Program and Bridget Marketplace.
Finally, it came to light this week that Walmart is the top grocery retailer by dollar share, according to new data from tech company Numerator. The company has remained in the No. 1 position since 2019.
The data finds that, as of the first quarter ending March 31, Walmart captured 21.2% of grocery market share. Kroger remains a distant second with 8.9%, and club retailer Costco Wholesale is a close third at 8.5%. Rounding out the top five grocery retailers are Albertsons Cos., at 5.0%, and Publix Super Markets, at 4.1%.
3. Exclusive Look at Meijer’s Newest Neighborhood Market
PG Senior Editor Lynn Petrak visited Midwest retailer Meijer’s latest smaller-scale store in Clarkston, Mich. Independent Market is Meijer’s largest market-style store, spanning more than 50,000 square feet, and focuses heavily on local product assortment.
“We bring local products to our stores with everything from things that are hyper-local right here in the Clarkston area but also spreading out to more miles in Michigan,” store director Robert Lajcaj told Petrak. “At any given point in time, 20% of our product assortment will be a local assortment. You still have national brands and the value that comes with Meijer, but we have local value, too.”
The Independence Market also features an onsite foodservice concept from a local restaurant operator, Honcho. At that counter, shoppers can order coffees and pastries in the morning and grab street tacos and other Latin foods during other parts of the day.
4. Hy-Vee to Shut Down Production Facilities
News came in this week that Hy-Vee will close down two of its standalone production facilities and shift fresh food production back to individual stores, effective June 24. The first facility, located in Chariton, Iowa, provides fresh-cut fruit and vegetables, while the other, in Ankeny, Iowa, makes take-and-bake pizzas, salads, sandwiches and baked goods.
Together, the facilities employ 461 associates, which Hy-Vee says it is “committed to assisting all impacted employees during this transition" and placing as many as possible within its stores.
"This move will significantly improve product freshness, quality, availability and customer service as more employees will be placed in retail stores," a news release said.
5. The Continued Dominance of Lidl and ALDI
Lidl and ALDI news continues to interest PG readers. New research from location analytics firm Placer.ai shows that these grocery chains have experienced higher year-over-year visits compared to the overall grocery segment so far in 2025.
Traffic at ALDI spiked 8.9% YoY during the first quarter, while visits to Lidl stores rose 4.2% in that same time frame. Underscoring the chain-wide trend, average visits per location were also up, with a 4.7% gain at ALDI and a 1.9% bump at Lidl.
In a new Placer.ai report, “ALDI and Lidl’s Winning Formula,” content writer Bracha Arnold noted that the increase in visits per location shows that their respective stores are driving sustained demand. Arnold also pointed out how the discount grocers may be on a similar trajectory but are forging their own paths.
Meanwhile, Lidl is growing its presence in New York with the May 23 opening of a new store in Brooklyn. Earlier this year, Lidl opened a store at the Gateway Center shopping complex in Brooklyn, and is also reportedly preparing a new store in a mixed-use complex in Brooklyn’s Crown Heights neighborhood at the corner of Bedford Avenue and Empire Boulevard. Plus, there’s talk of a location coming to another mixed-use space, in Brooklyn’s Park Slope area.
