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.
After striving for years to turn its online grocery business into a money-maker, Kroger declared this week that it finally has that elusive goal in its sights — but it comes with a significant caveat.
Kroger emphasized that it expects to generate a profit from e-commerce in 2026 because it is closing multiple automated facilities, relying more heavily on individual stores to fulfill orders and stepping up partnerships with third-party providers.
But the company’s CFO disclosed that it also takes sales from its retail media business into account when calculating its e-commerce profitability. In addition, Kroger noted that its arrangements with Instacart, DoorDash and Uber are helping to power its digital advertising operations.
Kroger’s decision to fold its booming retail media business into its definition of e-commerce profitability stands in stark contrast to how Albertsons — which, like Kroger and other grocers, has struggled to make money online — is approaching the challenge. Albertsons’ CEO said in July that the chain is getting close to breaking even on its digital business, but made clear that the company does not include sales from its retail media business when determining the profitability of its e-commerce operations.
It’s hardly surprising that making money online has long eluded food retailers. Consider the costs of picking products from shelves, packing and storing orders — not to mention developing apps and transporting goods to shoppers — and it’s easy to understand why grocers have struggled for years to achieve e-commerce profitability. Still, Kroger’s decision to factor retail media into the equation takes some of the air out of a highly significant achievement at a pivotal time for the company.
In case you missed it
Which grocers cooked this Thanksgiving?
While grocery store visits were up overall on the day before Thanksgiving compared with the same day a year ago, some grocers had more to be thankful for than others, according to Placer.ai data. That day, traditional grocers saw visits spike nearly 86% above their 12-month daily average, outpacing value and specialty chains and surpassing last year’s relative uptick. Value grocers saw a larger relative visit boost earlier in the week, though, indicating that budget-conscious customers got a head start on their grocery shopping.
Findings from the National Retail Federation show that supermarkets were the top shopping destination during Thanksgiving weekend, surpassing department stores, clothing stores, discounters and online.
Bye-bye, plastic bags
Starting Jan. 1, grocery shoppers in California will no longer be able to buy plastic bags when they check out at grocery stores, although they will have the option to buy a paper bag for at least 10 cents, the San Francisco Chronicle reported. California had tried to do away with single-use plastic bags a decade ago, but a loophole allowed stores to offer thicker plastic bags that can be reused but that customers often quickly discard, the paper noted.
Dollar General grows its produce availability
While discussing the company’s third-quarter results on Thursday, Dollar General CEO Todd Vasos told investors that the company plans to bring fresh produce to more than 200 stores in 2026. The discounter currently has fresh fruits and vegetables in approximately 7,000 stores — roughly one-third of its store fleet.
Impulse find
Publix shows December birthdays some love
Having a birthday in December amid winter holidays and New Year’s Eve can be challenging, so Publix has launched a new birthday campaign that ensures holiday festivities don’t hog the spotlight.
The grocery chain’s Merry Birthday campaign features two cake options — a two-tier cake for special order and a one-tier 5-inch mini at stores or online — as well as Merry Birthday wrapping paper and cards.
Publix debuted the campaign with a 90-second spot during the Macy’s Thanksgiving Day Parade.
Publix said more than 23,000 of its loyalty members have their birthday on Christmas — and those members can choose between a bar cake or Publix ice cream at their local store.
