THE FRIDAY 5: Whole Foods, Target Growing Again; Stop & Shop Announces Store Closures
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. Target, Whole Foods, Sprouts In Growth Mode
Another week, another spate of grocers growing across the United States. This time, news of Target’s new store openings in July made waves among PG’s readers. The retailer is adding to its nearly 2,000-store network with the opening of three new locations in California, Missouri and Pennsylvania on July 21.
Sprouts Farmers Market, meanwhile, has revealed opening dates for several new stores, contributing to its goal of opening approximately 35 stores by the end of the year. The new builds will continue to be based on Sprouts’ smaller-format design concept, measuring approximately 23,000 square feet and featuring an open layout, a community feel and produce at the heart of the market.
Whole Foods Market is also going smaller with its newest store location. The Amazon-owned grocer has revealed that its second Daily Shop grocery store will be located in New York City’s Hell’s Kitchen neighborhood, with the format designed to provide customers in urban neighborhoods a convenient shopping experience with easier access to fresh, high-quality offerings.
An exclusive interview with Christina Minardi, EVP of growth and development for Whole Foods and Amazon, about the companies' strategic focus on the physical store experience, starting with geography, also gained reader attention this week.
2. Credit Card Skimmers Found at Big Y
Big Y Foods Inc. is once again dealing with security threats at checkout. The New England-based grocer said that on June 29, it discovered a skimming device on a single checkout terminal at both of its Naugatuck and Plainville supermarkets in Connecticut.
The company released the following statement: "We are actively investigating the circumstances surrounding this incident, and we notified and are working with law enforcement. We have inspected all of our terminals, and continue to do so. If we learn that any particular customer’s information was compromised, we will promptly notify them and provide them with additional information so that they can take steps to protect themselves."
Earlier this year, the regional grocer found skimming devices at its stores in Massachusetts.
3. Stop & Shop Shuts Down Stores in Northeast
Months after Ahold Delhaize’s rollout of its Growing Together strategy, which revealed the impending closure of underperforming Stop & Shop stores, the grocery store chain identified the 32 locations that it intends to shutter by year end.
Locations throughout Connecticut, Massachusetts, New Jersey, New York and Rhode Island are expected to close on or before Nov. 2.
“Stop & Shop is proud of the deep roots and community ties we have developed as a neighborhood grocer of more than 100 years, and we remain committed to nourishing our associates, customers and communities,” noted Gordon Reid, president of Quincy, Mass.-based Stop & Shop. “As we announced in May, Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand.”
Uncle Giuseppe’s Marketplace has already announced it will open in a former Stop & Shop store located on New York’s Long Island.
4. Walmart Makes Moves With New Campaign, New Distribution Center
Walmart was in the news several times this week, first with news of its recently introduced American Farmers campaign, which was created with a particular aim in mind: to make sure the mega-retailer’s many customers know about the breadth of its produce offering.
“I saw that we had a perception issue in produce,” Evan Gaetano, manager of site merchandising-grocery e-commerce at Walmart and one of the architects of the campaign, exclusively told Progressive Grocer. “Customers had no idea that Walmart sources from 10,000 farms across America. We weren’t telling that powerful story, especially since customers today want to know exactly where their food is coming from.”
To remedy this situation, Walmart launched the American Farmers campaign on Walmart.com, which “highlights our growers and puts them front and center on our shoppable pages,” noted Gaetano.
Additionally, Walmart made news as it cut the ribbon on a new 730,000-square-foot perishable distribution center in Lancaster, Texas. The new facility, located 15 miles south of Dallas, receives and processes fresh produce, eggs, dairy, flowers and frozen goods for delivery to nearby Walmart stores.
Perishable distribution centers are a strategic part of Walmart’s supply chain transformation and keep its more than 4,600 U.S. stores stocked with fresh and frozen merchandise.
5. Hy-Vee Off to the Races
Another PG exclusive was popular among readers this week. Senior Editor Lynn Petrak was on hand as Midwest grocer Hy-Vee held its IndyCar Race Weekend at the Iowa Speedway, and heard from Executive Chairman of the Board Randy Edeker about how Hy-Vee’s culture that balances competition and service aligns well with the occasion combining professional racing, entertainment and activities that support people in need.
“This is a great way for Hy-Vee to showcase all of the good things that we are doing, all the things we are working on. Our Hy-Vee Homefront benefits the military folks that are in need in our communities and then we have One Step, which really benefits everyone. For us, it’s been a company with purpose and it helps us compete in our local market, so it’s been a great fit,” Edeker told Progressive Grocer.
