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According to the Brick Meets Click/Mercatus Grocery Shopper Survey, the online grocery market saw a 1.8% increase in January, reaching $8.5 billion. However, this growth was tempered by a decline in order frequency and a flat average order value compared to the previous year. Mass retailers like Walmart saw an increase in market share, while supermarkets experienced a contraction. Ship-to-home delivery experienced the highest sales growth, while pickup remained the most popular fulfillment method. The report also noted that the reduction in SNAP payments and changing buying behaviors influenced the market. Regional grocers are facing increasing pressure to meet customer demands and compete online. [Extracted from the article]

According to the Brick Meets Click/Mercatus Grocery Shopper Survey, the online grocery market saw a 1.8% increase in sales in January, reaching $8.5 billion. However, this growth was tempered by a decline in order frequency and a flat average order value compared to the previous year. Mass retailers expanded their share of the market, while supermarkets contracted. Ship-to-home sales experienced a 7.8% increase, while delivery sales were down slightly by 0.5%. Pickup remained the most popular fulfillment method, but its market share decreased. The report also noted that changes in buying behavior were expected due to reduced SNAP payments and a flight-to-value trend. Regional grocers are facing increasing pressure to meet customer demands and compete online. [Extracted from the article]

Compare Foods, a grocery store based in Charlotte, North Carolina, has gained a reputation for its community engagement and focus on fresh foods and Latin American products. The company, led by owner Omar Jorge, has been involved in various community activities, including health screenings, hunger relief efforts, and support for local schools. Compare Foods has also partnered with local hospitals to host free health screenings and has been active in supporting COVID testing and vaccinations. Additionally, the store has made scholarship donations and provided backpacks to students. While the store primarily targets customers of Mexican, Caribbean, and South American descent, it attracts a diverse range of customers. [Extracted from the article]

President Joe Biden criticized corporations for artificially inflating prices, particularly at grocery stores, during a political rally in South Carolina. He stated that while inflation in the US has decreased, there are still too many corporations "ripping people off" through price gouging and other tactics. A study by the National Bureau of Economic Research found that the cost of grocery staples like eggs and milk significantly influences Americans' views of inflation, despite these costs being excluded from the inflation index that policymakers focus on. Consumer Affairs magazine also reported that grocery price hikes vary greatly from state to state, with Pennsylvania experiencing the highest increase at 8.2% and Colorado having the lowest at 2.9%. [Extracted from the article]

The article discusses the potential challenges and opportunities that the grocery industry may face in 2024. One analyst expresses concern about the possibility of price deflation and increased competition from major players like Walmart, which could impact profit margins for traditional supermarket operators. However, another analyst highlights potential opportunities in areas such as health and wellness and personalized ecommerce relationships. The pending merger of Kroger and Albertsons is also mentioned, with the expectation that it will likely be approved by regulators in 2024. The article concludes by mentioning upcoming changes for Supermarket News, including a merger with Winsight Grocery Business. [Extracted from the article]

According to a study by marketing research company Ipsos, Target, Walmart, and Albertsons are considered top performers in streamlining the ordering and fulfillment process for online and pick-up grocery services. The study surveyed 1,200 Americans and conducted "mystery" shopping experiences to rank key purchase consideration drivers. Whole Foods Market was voted as the best in communication for delivery, while Albertsons was the brand shoppers were most likely to buy from again. Albertsons also ranked highest in curbside pickup satisfaction, while Amazon Fresh had the most return shoppers. The report highlights the investments made by big-box retailers in ecommerce and infrastructure to create a seamless grocery shopping experience. [Extracted from the article]

According to a recent survey, many consumers are feeling angry, anxious, and frustrated with the rising prices of groceries. The survey found that almost 72% of respondents believe that inflation is still a significant factor in grocery store prices. This negative sentiment is occurring as inflation levels approach pre-COVID levels. However, a recent analysis of shopper data suggests that weekly household grocery spending has remained stable since the summer of 2023, and concerns about rising food retail prices have eased since October. The USDA Food Price Outlook predicts that grocery store prices will decrease in 2024. [Extracted from the article]

The article provides the results of the SN News Quiz, which includes information about the delay in the Kroger and Albertsons merger and the expected timeframe for the deal to go through. It also mentions the increasing popularity of self-checkout at grocery stores and the percentage of shoppers who prefer it. The article further discusses consumer sentiments towards groceries, with words like "uncertain, tentative, questioning" being used to describe how consumers feel. Additionally, it mentions a keynote session on Generative AI at the Consumer Electronics Show, where Walmart and Microsoft collaborated, and the potential impact of AI on grocery shoppers. The article concludes by inviting readers to tune in to the SN Daily newsletter for the results of a bonus question. [Extracted from the article]

This article is a quiz that tests readers' knowledge of the past year in the grocery industry. It asks questions about CEO announcements, stock gains, and significant moves in foodservice at retail. The quiz also includes a bonus question about the rise in energy drink sales. Readers are encouraged to tune in to the SN Daily newsletter for the results of the bonus question. [Extracted from the article]

DoorDash, a San Francisco-based delivery company, has announced plans to expand into the retail and grocery sectors in 2024. With $878 million of free cash flow reported for the 12 months ending in September, DoorDash is well-positioned for growth. CEO Tony Xu stated that the company is focused on efficient growth and will be selective with acquisitions. DoorDash currently holds a 59% share of the U.S. restaurant delivery market, which gives them a strong foundation to enter the grocery and retail markets. Xu emphasized that their existing consumer and driver base provides them with ample opportunities to expand into adjacent categories. [Extracted from the article]

According to a report by Grocery Doppio, digital grocery sales are projected to decline in 2023, making up just 13.1% of the total grocery market. The overall grocery market is expected to increase to $926 billion, but digital sales are estimated to drop to $121 billion from $128 billion in 2022. Grocers faced challenges such as unavailable or unsubstituted items, resulting in a loss of $19 billion in digital sales. Inflation also drove prices up by 12%, affecting brand selection and the quantity of items purchased. However, grocers remain optimistic about digital grocery sales in 2024 and plan to increase their digital grocery and artificial intelligence budgets. The integration between brick-and-mortar operations and digital systems is a top priority for grocers in 2024. The pickup method of omnichannel shopping was dominant in 2023, accounting for 51.4% of online purchases, while delivery accounted for 48.6%. [Extracted from the article]

Brookshire Grocery Company has acquired land in Longview, Texas, to build a new Fresh by Brookshire store. The company currently operates two stores under this format, which was introduced in 2011 and focuses on "Sharing the Wonders of Food." The retailer is collaborating with the city of Longview and the Longview Economic Development Corporation on the plans. Brookshire Grocery Co. operates over 200 stores under various banners, including Brookshire's, Super 1 Foods, FRESH by Brookshire's, Spring Market, and Reasor's. [Extracted from the article]

This article from Supermarket News introduces a new feature called "SN Leaders to Watch," which highlights up-and-coming leaders in the grocery industry. The article profiles two individuals, Sal Costanza and Jennifer Onoja, who have made significant contributions to their respective companies. Costanza, the director of procurement for The Save Mart Companies, implemented strategic changes that reduced costs and increased profits. Onoja, the senior category manager for dairy at KeHE, focuses on helping product suppliers grow their sales. The article emphasizes the importance of treating people well and invites readers to enjoy the beauty of the season. [Extracted from the article]

The "State of the Industry: The Omnichannel Grocery Shopper" report, conducted by Incisiv and FMI in partnership with Wynshop and announced by Grocery Doppio, highlights the growing preference for a hybrid approach among American grocery shoppers. The report reveals that nearly three-quarters of grocery customers now shop online for groceries at least part of the time. Omnichannel buyers spend 1.5 times more per month than single-channel buyers and are more than three times more loyal than digital-only customers. The report also emphasizes the importance of reducing friction in the shopping experience, particularly in handling inventory status and out-of-stock items, checkout, and the pickup experience. [Extracted from the article]

Grocery Outlet Holding Corp. has announced the opening of its first store in Boardman, Ohio, marking its presence in nine states. The store will be operated by Independent Operators Eric and Sarah Senges, who also operate a second location in New Castle, Pennsylvania. The Senges have over 30 years of experience in retail, including operating a Grocery Outlet location in California. Grocery Outlet's CEO and President, RJ Sheedy, expressed excitement about expanding the company's footprint in Ohio and making high-quality, affordable groceries more accessible to the community. With 455 stores across the country, Grocery Outlet is focused on strategic geographic expansion and providing job opportunities while offering affordable name-brand items. [Extracted from the article]

This article highlights five key topics in the grocery industry. It introduces Jake Tavello, the chief operating officer of Stew Leonard's, as one of the rising stars in the industry. It also discusses the potential merger between Kroger and Albertsons, suggesting that it could lead to competitive grocery prices and job security. CVS Health's CEO, Karen Lynch, expresses her enthusiasm for the acquisition of Oak Street Health, a primary care provider, as CVS expands into healthcare delivery. The article also mentions a temporary pop-up grocery store in Chicago's West Garfield Park neighborhood, which offers affordable goods while a Save-A-Lot store is being remodeled. Lastly, the bankruptcy of Rite Aid serves as a cautionary tale for corporate leaders, emphasizing the importance of avoiding over-leveraging, losing focus, straying from core competencies, and giving up ground to competitors. [Extracted from the article]

Through the initiative, known as the Grocery Access Pilot (GAP) program, up to 110 Columbia residents living in food deserts will receive a complimentary Instacart+ membership and $5/month in Instacart Health Fresh Funds stipends for one year. Instacart Health will partner with the city of Columbia, South Carolina on a program aimed at improving access to nutritious food for families in the city's food deserts. In addition, Instacart and the City of Columbia will also work together to create a new virtual storefront for residents to help encourage nutritious shopping choices. [Extracted from the article]

The Grocery Workforce report reflects interviews with more than 700 grocery associates at national, regional, and local grocery stores, as well as data from other Grocery Doppio studies. Incisiv,an industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, a provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from Grocery Doppio's report, State of the Industry: How Digital is Reshaping the Grocery Workforce. [Extracted from the article]

Two newly redesigned Amazon Fresh stores in the Chicagoland area feature a new layout with new brands, a focus on prepared meals, and the option of using Dash Carts - Amazon's smart shopping cart that informs shoppers about real-time deals and allows them to check out directly from the cart. Amazon may soon lower the threshold for free grocery delivery for Prime members, according to a leaked memo first reported byBusiness Insider. Amazon is also planning to combine its ecommerce supermarket brands (Amazon Fresh, Whole Foods, Amazon.com) into one single online cart. [Extracted from the article]

Highlights include: a device that sits on a shopping cart and displays offers to consumers; an Israeli company called ShopperAI, which gives shelf recommendations based on shopper behavior; and Birdzi, which personalizes grocery marketing. B AI is old hat for grocery: b The grocery industry is notoriously competitive and the vast majority of that competition still takes place in physical stores. [Extracted from the article]

Grocery tech company Instacart has partnered with Mount Sinai Solutions, a division of Mount Sinai Health System serving employers and unions, to launch Instacart Health Fresh Funds grocery stipends as a benefit for post-operative and postpartum patients insured by a health plan sponsored by a Mount Sinai Solutions employer or union customer. Patients will also benefit from a tailored Mount Sinai Virtual Storefront, allowing for shopping and delivery of provider-recommended goods from local, regional and national retailers via Instacart. [Extracted from the article]

Though the FMI Midwinter Executive Conference isn't until January, the deadline for the group's FMITech Pitch Competition is fast-approaching. The pitch competition is open to any technology solution provider with less than $2 million in funding. [Extracted from the article]

Despite Amazon CEO Andrew Jassy declaring a pause on the expansion of the Amazon Fresh grocery concept in February, a new Amazon Go store (the company's convenience concept) has opened near Puyallup, Wash., reportsThe News Tribune. Amazon eliminated hundreds of Fresh jobs in July and many planned Amazon Fresh store locations remain vacant, which has led toissues with landowners. [Extracted from the article]

Jackson Mitchell, a fourth-generation member of the family that owns wholesale distributor Mitchell Grocery, is planning to open an upscale, 42,000-square foot supermarket in Augusta, Ga., next summer that will include a sports bar, a five-hole putting green and several foodservice concepts. The store also plans a beer-and-wine sports bar concept called Jackson's that will feature 13 TV screens and 10 beers on tap, along with a menu of bar food items. [Extracted from the article]

New grocery partners available on the platform include: CUB, offering on-demand delivery of everything from fresh produce to over the counter pharmacy products from 79 locations throughout Minnesota. DoorDash has announced eight new grocery partners available for on-demand delivery via the DoorDash Marketplace. [Extracted from the article]

Grocery inflation in the past year has dropped from 13.5% to 3.6%; Kroger's total market share has dropped from 12.1% to 10.7%, while at the same time, low-cost leaders like Walmart and Costco have seen market shares have risen. Now, assuming all the deals go through, we have Kroger acquiring Albertsons, C&S Wholesale presumably buying the stores spun off from the deal, and Aldi buying Winn-Dixie and Harveys. Graph Rob Kaufelt is the former owner of Murray 's Cheese Shop in Greenwich Village, which he sold to Kroger Supermarkets. [Extracted from the article]

In addition, there are plans for Instacart customers in Ohio to be able to order alcohol online for delivery at participating Giant Eagle and Market District locations in the coming months. Giant Eagle has signed on with Instacart to offer shoppers same-day delivery (in as fast as an hour) from Giant Eagle and Market District via the Instacart app. [Extracted from the article]

The operators of the Las Vegas store view the location "as a way to serve people looking to save money on groceries and address food insecurity in Southern Nevada." The new Las Vegas location will be the 450th store for the Calif.-based Grocery Outlet. [Extracted from the article]

Aldi shocked the grocery store marketplace a couple weeks ago when it announcedit had acquired 400 Winn-Dixie and Harveys Supermarkets stores. New stores will have the Aldi look: b "It's very early in those initial discussions and, ultimately, I believe Aldi would want to convert all of those stores to the Aldi format. The expansion might not be over: b "If there is an opportunity for them in a marketplace where it makes sense, then I can see Aldi continuing to explore those opportunities of acquisition, or even still building stores. [Extracted from the article]

The study cited retail scanner data from the World Bank following the Great Recession of 2008 that found food prices go up 1% for each 12.5% hike in per-capita food stamp spending. The Biden administration's push to increase food stamp benefits will cost around $1 trillion over the next decade, according to the Congressional Budget Office and reported byThe New York Post. [Extracted from the article]

B TOP TAKEAWAYS b 87% of grocery retailer executives say the marketing of groceries will become hyper-personalized Four in-10 executives see store-managed food production (such as vertical farming) for most of their stores in the next five to 10 years Grocery executives expect technology to enable reduced or no checkout experiences (66%); hyper-personalized, guided shopping (65%); and tailored experiences and sampling for individual customers (63%) New datafrom a survey of grocery retailers reveals what the future of grocery might look like: it will be hyper-personalized. In addition, almost half of executives see national-brand CPG partnerships becoming less important over time as they add more store-branded offerings and CPG companies explore more direct-to-consumer offerings, where the results urge CPG partners to find a new model. Also in the next decade, four-in-10 executives see store-managed food production (such as vertical farming) for most of their stores. [Extracted from the article]

Private label wine sales appear to be taking off and holding a high altitude. Store brand dollar sales in the U.S. climbed steadily throughout 2022, according to a new report by the Private Label Manufacturers Association. [Extracted from the article]

Thanks to its grocery business, DoorDash recently reported its "best quarter ever", with total orders up 25% year-over-year to 532 million. The company also reported stable growth in its U.S. restaurant marketplace and accelerated growth in our U.S. non-restaurant categories and international markets, especially grocery. [Extracted from the article]

Here are the results of last week's SN News Quiz! Walmart (you did it!) Amazon Target Which retailer suffered a major data breach? The SN News Quiz: Groceries a big hit for Walmart's version of "Prime Day". [Extracted from the article]

Thousands of Metro workers hit the picket lines in front of 27 grocery stores after the workers rejected a deal executed by Unifor Local 414, reports Canadian publicationTriCity News. Several Metro grocery stores around the Toronto area were closed on Saturday due to a worker strike, just as shoppers were getting ready to purchase their food needs for the week. [Extracted from the article]

Walmart (you did it!) Amazon Target Which retailer suffered a major data breach? Here are the results of this week's SN News Quiz!. [Extracted from the article]

Walmart+ shoppers spent almost twice as much money on grocery purchases during the Walmart+ Week event, which was two times more than Amazon Prime shoppers who did the same. B Groceries are a big draw b Amazon Prime shoppers prioritized clothes and beauty products, whereas Walmart+ shoppers purchased groceries, boosting its average spend by 100%. B TOP TAKEAWAYS b Consumer participation in at least one of these events increased from 38% last year to 46% in 2023 While 40% of consumers made purchases on Amazon Prime Day, just 20% did so during Walmart+ Week Amazon Prime shoppers prioritized clothes and beauty products, but Walmart+ shoppers purchased groceries, which boosted Walmart+'s average spend by 100% Walmart+ Week and Amazon Prime Day both had overlapping days in mid-July, however, survey data reveals that twice as many Prime members knew about and made more purchases during the Prime Day sales event than Walmart+ Week, reports news and analysis company PYMNTS. [Extracted from the article]

Have you noticed a plethora of issues plaguing traditional agencies when it comes to marketing the CPG and grocery industry? I spent the majority of my career in digital marketing and I can remember a time when it wasn't considered part of marketing, but a separate division - this was both at the agency and brand level. [Extracted from the article]

Unifor Local 414, the union representing the Metro workers, will now use the settlement as a blueprint for other grocery employees. Metro grocery workers will stay on the job after their union came to an agreement with the Canadian-based grocer as the strike deadline loomed. [Extracted from the article]

More specifically, Millennials have increased year-over-year 10% when it comes to online grocery spending, as well as 15% among bridge Millennials. B TOP TAKEAWAYS b Millennials have increased year-over-year 10% when it comes to online grocery spending Gen Z has decreased digital engagement by 10% in the same period 45% of Gen Z consumers cite convenience as a key reason for shifting to digital for groceries Online grocery shopping may have picked up during the global pandemic, but as consumers get back to brick-and-mortar, news and analysis company PYMNTS looked at the behaviors of two groupsof shoppers and their online spending habits. [Extracted from the article]

Walgreens has acquired 120 pharmacies from Brookshire Grocery Company. According to the agreement, some Brookshire pharmacies will close, and those patient files will either be transferred to a local Brookshire pharmacy or a nearby Walgreens. [Extracted from the article]

Leading up to the event, Amazon is offering grocery-specific deals for its Amazon Fresh stores. Amazon Prime Day is coming up and the ecommerce giant is customizing its deal to push for more grocery gains, reports news and analysis company PYMNTS. [Extracted from the article]

While conventional supermarket grocery sales in the U.S. shrunk from 69.7% in 2017 to 66.6% in 2022, simultaneously, grocery share for mass merchants and dollar/discount stores rose, with warehouse clubs tallied at the biggest grocery share gains (from 8.7% to 10.9%). This practice, in turn, incentivizes these retailers to price groceries aggressively, as they have numerous avenues to monetize grocery-driven traffic", it said. B TOP TAKEAWAYS b U.S. grocery retail to grow 5.6% to $1.5 trillion in 2023 U.S. grocery retail to grow 4.2% year over year to $1.56 trillion in 2024 Food-away-from-home share of 53% in 2022 stands to expand to 55.2% in 2027 The U.S. grocery industry is expected to see moderate growth in 2023, projected at a total rise of 5.6% to $1.5 trillion this year, according to a reportfrom data firm Coresight Research. [Extracted from the article]

B Amazon pushing grocery on Prime Day: b Amazon's Prime Day comes with gadgets and tech deals per usual, but the ecommerce giant is also pushing users towards its grocery this year, reports Business Insider. - Bill Wilson B How the merger will disrupt grocery as we know it: b While the merger deal has not been officially approved yet, both Kroger and Albertsons are making moves to prepare as if it has. [Extracted from the article]

Panera Bread is continuing to expand its portfolio of rewards and benefits with the introduction of a grocery rewards program that is slated to run through the fall. The subscription program mimics an upgraded loyalty program, with other perks like $0 delivery fee on all online Panera orders and "Sip Club Saturday" deals just for members, along with VIP challenges and prizes. [Extracted from the article]

It's time for grocers to work smarter to empower modern associates: The future of grocery hinges on providing employees the right tools in meeting ever-increasing job demands and delivering exceptional customer experiences. Graph Shamus Hines is the CEO of Upshop and has spent his career pioneering product development, structuring global financial acquisitions, and building smarter enterprise technology. [Extracted from the article]

The Canadian government is being called on to increase the level of competition in the Canadian grocery industry. According to the study results, the majority (81%) of Canadian consumers said they buy groceries one to three times per week - and the breakdown of those trips is concentrated between just five grocery retailers. [Extracted from the article]

Canada's largest private-sector union is ready to go on strike in an effort to get fair pay at Metro grocery stores in the Toronto area. The overwhelming strike vote shows the unity and determination of grocery workers as we work toward a collective agreement that addresses key issues that impact workers and customers.". [Extracted from the article]

B TOP TAKEAWAYS b At a compounded 3% growth rate, the U.S. grocery retail industry will more than double and be worth $1.9 trillion in 2053 In the U.S., 62% of basket items have experienced a >4% inflation affecting not only food but also energy, transportation, and labor Food-at-home Inflation came in at 8% year-over-year in March 2023 and is predicted to ease back between 5% and 4% for all of 2023 Customer data science company dunnhumby has unveiled the trends that will have the biggest impact on grocery retail in the next three decades, including which grocers are still poised for growth in the future. CVS topped all retailers for the health and wellness mega-trend followed by Amazon, H-E-B, Rite Aid, Walgreens, Costco, Walmart, Fry's, Kroger, and Meijer. [Extracted from the article]

The other states include: Idaho at 6% sales tax on groceries Utah at 1.75% sales tax on groceries South Dakota at 4.5% sales tax on groceries Kansas at 6.5% sales tax on groceries Oklahoma at 4.5% sales tax on groceries Missouri at 1.23% sales tax on groceries Arkansas at 1.5% sales tax on groceries Tennessee at 4% sales tax on groceries Mississippi at 7% sales tax on groceries Alabama at 4% sales tax on groceries Virginia at 2.5% sales tax on groceries Hawaii at 4% sales tax on groceries Illinois at 1% sales tax on groceries Among the 13 states that tax groceries, Hawaii, Idaho, Kansas, and Oklahoma all offer a credit or rebate to offset costs for low-income households. Illinois is set to reinstate its 1% grocery tax after a year-long suspension put in place by the state government to provide some relief from inflation. [Extracted from the article]