Wal-Mart regaining grocery share from competitors at ‘accelerating rate’

Wal-Mart Stores is gaining a bigger slice of the $800 billion market and momentum picked up in the recent first quarter, according to a new report.

“Wal-Mart is taking back share from the traditional supermarket at an accelerating rate,” according to Loop Capital analyst Andrew Wolf, who estimates the retailer now has a 21.5 percent market share in the U.S. traditional grocery industry.

In a report this week, Wolf said the world’s biggest retailer’s domestic grocery same-store sales beat U.S. supermarkets by 2.9 percent in the first quarter, which represented a stronger pace from 1.6 percent outperformance in the fourth quarter of 2016.

“Wal-Mart’s last period of sustained outperformance versus the supermarkets was 2009-2010, while from 2013 through Q3’2016, the supermarkets outperformed Wal-Mart at same stores,” Wolf said.

Added the analyst, “Thus, the last quarter of outperformance appear to mark a potential major inflection point for Wal-Mart after having been a (same-store) share donor since 2013.”

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Why are Grocery Outlet Bargain Market, Aldi succeeding in SoCal where others failed?

Southern California’s supermarket industry is notoriously competitive, a reality that has prompted some newcomers to pare back their operations and others to pull out of the region completely.

Haggen’s botched entry into the region ultimately resulted in the company leaving California, and Fresh & Easy filed for bankruptcy twice before closing all of its local stores. Continue reading “Why are Grocery Outlet Bargain Market, Aldi succeeding in SoCal where others failed?”

Amazon’s no-checkout grocery headed to Europe

Amazon seems to be looking to export its experimental checkout-less grocery story to the United Kingdom with Friday’s registration of the trademark of “No Queue. No Checkout. (No, Seriously.)”

Similar trademarks are in process in the European Union’s Intellectual Property Office.

Amazon began testing a no-checkout grocery store called Amazon Go in downtown Seattle in December. Open only to Amazon staff at this point, it allows customers to walk in, grab food from the shelves and walk out again, without ever having to stand in a checkout line. The tagline in the U.S. market: “No Line. No Checkout. (No, Seriously.)” Continue reading “Amazon’s no-checkout grocery headed to Europe”

Faster, Fresher, Cheaper: The Grocery Shopping Revolution

Marie Henry cares a lot about the food her family eats. During growing season in her town of East Nottingham Township, Pa., the 35-year-old stay-at-home mom walks down the street to her Amish neighbors’ farm to buy fresh eggs and pesticide-free strawberries, vegetables, and herbs. She skips the supermarkets near her home to purchase the “perfect” organic oranges and lemons that she says she can get only at Wegmans, a 30-minute drive away. About once per month, she’ll also make a special trip to Trader Joe’s, 40 minutes away, to load up on the organic brown rice and quinoa noodles she feeds her 1-year-old, Adam.

When Henry and her husband, Bill, 34, a public-school music teacher, feel pressed for time, they grab the basics at a local Giant supermarket. Bill goes to BJ’s Wholesale Club on occasion. They sometimes have meal kits delivered by Blue Apron and HelloFresh. And they use AmazonFresh, the online grocery delivery service, which charges $15 monthly on top of the $99 annual Amazon Prime subscription. Henry admits that getting organic produce and meats delivered to their door is an indulgence. “But the convenience factor is worth every penny,” she says. Continue reading “Faster, Fresher, Cheaper: The Grocery Shopping Revolution”

B&R to acquire Lovegrove’s Grocery

B&R Stores on Monday said it has entered into an agreement to acquire Lovegrove’s Grocery, a store in Waverly, Neb., from its family owners and would rebrand the store behind its Russ’s Market banner.

“The Lovegrove’s Grocery Store has served Waverly shoppers for over 25 years, and its legacy as a family-owned business continues on,” Pat Raybould, president of Lincoln, Neb.-based B&R Stores, said in a statement. “We’re excited about the potential of the neighborhood store too, as it’s already a fundamentally strong business. We look forward to being a part of the Waverly community.”

Financial terms were not disclosed. The transaction is expected to close by the end of this month. The name will change to Russ’s Market Express, a new smaller Russ’s Market concept.

Source: Supermarket News

Can Big Brands Thrive Amid U.S. Grocery’s Upheaval?

Consumer goods companies expecting to maintain their 2% to 4% annual revenue growth in the U.S. are waking up to a cold reality. Turbulent retailing trends mean that unless they drastically rethink their strategies, brands could be hard pressed to capture even one-third of that growth, while up to 30% of their margins could be at risk, according to Bain & Company analysis.

At the heart of the matter: Shopper behaviors have put big brands at a crossroads. Americans are increasingly going online to purchase their groceries. They’re defining value in new ways by embracing private labels, demanding low prices and, in rising numbers, migrating away from larger, known brands in favor of small brands that appeal to their individual health choices, an interest in local origin and other preferences. It’s to the point that small brands now have the edge when it comes to revenue growth. Our research found that 23% of small brands — many benefiting from lower barriers to entry — outpaced their category growth every year from 2010 to 2014, compared with only 14% of larger brands. Continue reading “Can Big Brands Thrive Amid U.S. Grocery’s Upheaval?”

Amazon could fill your next prescription

Amazon may be exploring a move into the $465 billion-a-year U.S. pharmaceutical market. It’s a market ripe for disruption but one difficult to enter, analysts say.

There have been some clues in recent Amazon moves. In November, the company launched a one-hour delivery service for non-prescription items from Bartell Drugs, a 127-year-old pharmacy chain based in Seattle, as part of its Prime Now offerings. Amazon frequently tests programs around Seattle where it can be hands-on with them. Continue reading “Amazon could fill your next prescription”

Amazon Sets Sights on U.K. Grocery With Checkout-Free Trademark

Amazon.com Inc. is laying the groundwork to bring its checkout-free grocery store Amazon Go to Europe, as the U.S. giant steps up its efforts to crack the $800 billion global market.

The U.K. Intellectual Property Office on Friday approved the Seattle-based company’s application to trademark the slogans “No Lines. No Checkout. (No, Seriously.)” and “No Queue. No Checkout. (No, Seriously.)” A corresponding application is being reviewed by the European Union’s equivalent agency.  Continue reading “Amazon Sets Sights on U.K. Grocery With Checkout-Free Trademark”

The ‘Asian Whole Foods’ Is Expanding Across The San Gabriel Valley

Lee is the owner of LOHAS Fresh Mart, a boutique Asian grocery store with four locations — Alhambra, Diamond Bar, Arcadia and Rowland Heights — around the San Gabriel Valley. The one in Alhambra is the flagship. It’s stunningly similar to the boutique grocery stores of Taipei.

Everything is neatly stacked. To the immediate left of the door is a pristine produce aisle. You might find bok choy from Riverside and all different sorts of organic mushrooms. Each fruit or vegetable has a sticker that indicates whether or not it is USDA-certified organic. Most of it is. Down the line are the proteins: meats and seafood are carefully marked with their source.  There’s also an aisle dedicated to sauces made by small vendors in Taiwan. Continue reading “The ‘Asian Whole Foods’ Is Expanding Across The San Gabriel Valley”

What’s New in the Supermarket? A Lot, and Not All of It Good

“We’ve come in the back door,” the writer Michael Ruhlman said as we entered the chill of the ShopRite supermarket here. “We should be over there, in produce.”

Apologizing to shoppers trying to steer carts toward the exit we had just entered, we made our way to the produce section, where the first thing that caught our attention was the floor. While the middle of the store was carpeted in a grayish linoleum, here was a warm-colored fake wood: our initial clue that fruit and vegetables carried a special cachet.

“They have a surprising amount of interesting things here,” Mr. Ruhlman said as he prowled the bins, picking up an aloe leaf. The section also had prickly pears, cherimoyas and delicate zucchini blossoms that caught his eye on the way to a pile of green bananas.

“This I always find fascinating, that people will actually buy green bananas,” Mr. Ruhlman said, noting that consumers who make one big food-shopping trip each week prefer greener bananas that keep longer.

Continue reading “What’s New in the Supermarket? A Lot, and Not All of It Good”