The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
Aldi has long set itself apart from other grocers with its potent combination of low prices, a heavy focus on private brands, small-format stores and a limited assortment.
But with its announcement this week that it will put its own name on every private label product, the fast-growing German retailer is taking a page from conventional supermarket chains that connect their banners directly with the items they carry. Kroger, for example, has its own name on many products it sells in addition to brands like Simple Truth and Private Selection, which have become powerful names in their own right.
Aldi’s decision suggests that the discounter has concluded that consumers now so closely associate its brand with words like “inexpensive” and “discount” that relying on an array of unmemorable brands on its shelves instead of emphasising its own name is a lost opportunity to build connections with shoppers. Why put the focus on names few people have on the tip of their tongue, like Simply Nature (chicken broth), Southern Grove (raisins) and Northern Catch (tuna fish), when so many shoppers think of Aldi as the antidote to rising grocery prices?
It’s remarkable that it took Aldi, which has operated in the U.S. for almost 50 years, so long to brand the products it sells with its name — especially given the emphasis on saving money that has defined shopper behavior during the past few years. But as the chain speeds toward its goal of opening over 200 stateside locations in 2025, it’s hardly a surprise that the company wants to shine a brighter spotlight on its name.
In case you missed it
USDA suggests SNAP stocking changes
On Wednesday, the USDA announced proposed changes to stocking requirements for retailers participating in SNAP. Currently, SNAP retailers must stock three varieties of food in each of four staple food categories — dairy, protein, grain, and fruits and vegetables. The proposed rule would increase the variety requirements to seven per staple food category, close loopholes that allow certain snacks to count as food staples and simplify food classifications to make enforcement easier.
The National Grocers Association said in a statement that it supports the proposal.
WinCo Foods eyes Wyoming
The Boise, Idaho-based grocery chain appears to be preparing to debut in a new state. The city council of Cheyenne, Wyoming, recently rezoned about 18 acres, calling the parcel the “WinCo subdivision,” according to local news outlets. Councilman Mark Rinne said in his column Friday for the Wyoming Tribune Eagle that the development is slated for a WinCo store.
This follows WinCo’s efforts earlier this year to enter Colorado, as evidenced by a state filing by the grocer. WinCo currently has over 100 stores across 10 states.
Albertsons and Teamsters ratify contract in California
Albertsons and Teamsters Local 952 have ratified a five-year collective bargaining agreement that covers more than 1,600 of the grocer’s drivers, warehouse, clerical and maintenance workers. The contract provides a $4-per-hour wage increase, with raises totaling $10 over the life of the contract, and includes a $2 increase in pension contributions for union members as well as improvements that “strengthen working conditions across the bargaining unit,” the Teamsters said in a blog post.
Impulse find
Giant Food looks to score in the cereal aisle
As hockey fans in the Washington, D.C. area wait to see if this will be the final season for beloved Capitals Captain Alex Ovechkin, Giant Food is tapping into the “Ovi” fandom at the start of the NHL season.
The Mid-Atlantic area grocery chain has partnered with Ovechkin on a new, limited-edition Ovi’s Great Crunch cereal. The limited release celebrates Ovechkin’s record-breaking 895th career goal on April 6, when Ovechkin surpassed Wayne Gretzky in scoring the most goals in NHL history. A portion of the sales proceeds of Ovi’s Great Crunch will benefit Ovechkin’s campaign to raise funds for childhood cancer research.
On Tuesday, Ovechkin made an appearance at a Giant Food store in Washington, D.C., during which he served cereal, milk and toppings to youths affiliated with a local ice arena.
Giant Food noted in an emailed press release that Ovechkin’s appearance “was a complete surprise to the more than dozen kids invited to this special experience.” That’s not all: Ovechkin donned a Giant Food uniform and surprised shoppers by roaming the store with a custom-made shopping cart filled with boxes of his cereal and handing out Giant Food gift cards. Like a true grocery store worker, he also rang up shoppers’ purchases.
