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.
Comparing Costco to traditional grocers is like comparing apples and oranges — similar, sure, but not the same. But make no mistake: The club retailer is a major threat in grocery, and recent developments should be raising alarm bells for traditional players.
The retailer is thriving in the core departments and key trends that drive grocers’ businesses. Costco’s third-quarter earnings results were strong, due in part to the launch of protein-focused private label items aimed at GLP-1 users.
In the following quarter, the company reported that its fresh comparable-store sales were up in the mid-single digits, led by bakery and meat departments. By comparison, traditional grocers have recently reported comps that were slower — or even negative.
Market share figures also show Costco steadily gaining ground each year. Numerator data put the club retailer’s grocery market share at the end of June at 8.3%, up from 7.9% at that point the year before and 7.6% in mid-2024.
As if all of this wasn’t enough cause for concern for grocers, recent data by YouGov showed that U.S. consumers — and particularly young consumers — are more partial to Costco than Aldi in terms of value perception. And this is despite Costco having the added hurdle of requiring a paid membership to shop its stores.
Walmart, Amazon, Aldi and dollar retailers are the obvious threats traditional grocers have been closely monitoring for years. But now that Costco is making waves and gaining market share, is it the grocery industry’s biggest threat?
In case you missed it
Amazon’s grocery deals for Prime Day
Prime Day is nearly upon us, and Amazon is once again highlighting grocery savings for consumers. From Oct. 6-7, Amazon will offer fresh deals like organic Honeycrisp apples priced at $2 per 2-lb. bag, as well as ground beef and Dietz & Watson Genoa salami for under $3. There will also be a slew of $1 deals on items like Sabra hummus and cherry tomatoes, according to an emailed announcement.
During last year’s Prime Day, which ran from June 23-26, grocery hit a four-year low, with only 16% of Prime shoppers purchasing items in this category.
Meijer grows grocery and supercenter fleets
On Wednesday, the regional operator opened two new locations — one under its classic supercenter format and another under its newer Meijer Grocery concept.
The latest Meijer Grocery store, which opened in Fishers, Indiana, spans 75,000 square feet and is the company’s sixth Meijer Grocery store in the Midwest and its second in the Hoosier State, according to a company press release. Meanwhile, Meijer’s newest supercenter, in Plymouth Township, Michigan, spans 159,000 square feet and is the company’s 130th location in its home state.
Aldi’s newest ‘Fan-Inspired Finds’
The discounter is once again proving it knows its audience with the introduction of two new eye-catching products, according to an emailed announcement.
On Oct. 14, Aldi’s “Big Bag” is back. When it was previously launched, more than 45,000 shoppers lined up online and claimed every bag within minutes. Now, Aldi is reintroducing the tote bag, which is three times the size of a standard reusable tote, in its stores.
The following week, Aldi will launch Mama Cozzi’s Big Dill and Blackened Chicken Caesar pizzas, products inspired by “pickle mania and the viral ‘girl dinner’ trend.”
Impulse find
Ever seen hay painted green and constructed to resemble Phillie Phanatic, the beloved mascot of the Phillies? Well, if not, you should check out Sprouts Farmers Market’s South Philadelphia storefront.
Appropriately named “Philly Fauxnatic,” the 5-foot-7 figure pays tribute to the Phillies’ playoff run (which ended Thursday night with a loss to the Atlanta Braves). But shopper reactions to the creature have been mixed, 6abc Philadelphia reported.
“How could you not love him? I know he’s a little off, but I think his proportions being crazy make him so much better,” one shopper told the local news outlet.
However, others say he “could be a little better” or get a “redo at the spa.”
Unfortunately, Philly Fauxnatic didn’t get a spa day — instead, a nor’easter blew off his hat as well as one of his arms. He was then knocked completely off his base.
But Sprouts wasn’t ready to let him go and propped him up against the store’s front door with both arms sitting in a pile at his feet, the ABC TV station wrote.
