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.
Now’s not an easy time to be a food retailer. Customers are worn down by food affordability woes, pharmacy sales are taking a hit from changes under the Inflation Reduction Act and high fuel costs are persisting.
As they deal with these economic woes, the second-quarter earnings results by Target and Walmart this week highlight how the grocery category is helping two of the nation’s most prominent grocers stay resilient.
Target, which is in the midst of a financial turnaround, has leaned heavily into product discovery, trendiness and revamping its center store selection, executives told investors this week. This focus on grocery has seemed to revive its fun “Tarjay” reputation — the retailer’s food and beverage sales grew by 7.2% in Q2, outpacing its comparable store sales increase of about 3%.
Walmart’s grocery business is also in growth mode. The retailer’s stateside grocery category recorded mid-single-digit comps growth (the retailer doesn’t give an exact figure) even as its U.S. comparable-store sales excluding fuel rose only 2.6%. Continuing to build on its grocery share gains, Walmart is looking to new meal delivery options and temporary price cuts in its food aisles — doubling down on its one-stop-shop and low-price perceptions.
“Our price gaps to conventional grocers here in the U.S. are strong, and they continue to widen,” Walmart CEO and President John Furner told investors Thursday.
While Target’s grocery strategy focuses on relevancy and Walmart’s on price and convenience, the companies’ approaches both hammer home what consumers have come to know them for.
As Furner told investors Thursday morning, “Having the best prices across a basket of goods helps us continue to build trust with our customers and members by helping them save money at a time when many households are carefully managing their budgets.”
In case you missed it
Hannaford spotlights benefits it brings shoppers
The Ahold Delhaize USA-owned supermarket chain has launched an omnichannel brand campaign focused on “the everyday moments that keep customers coming back.” Hannaford said its new “If You Know, You Go” campaign is designed to build loyalty by reminding customers about the reasons they already shop at the grocery chain, such as to find value or meal solutions.
ShopRite celebrates diamond anniversary with savings for shoppers
The Wakefern Food Corp.-run grocery banner is marking its 75th year of operations with two weeks of promotions and limited-time offers, with sale prices on certain items ending in “.75” to highlight the milestone.
Throughout the week of Aug. 16, participating ShopRite stores are offering discounts on selected products under the Bowl & Basket, Paperbird, Well Everyday and Wholesome Pantry private labels. Customers who spend at least $75 on participating goods under those brands will get $25 off their total purchase. Next week, ShopRite locations will offer digital coupons for savings on 18 unspecified items.
Meijer grocery store could be headed to Ohio
Lawmakers in Tipp City, Ohio, have approved legislation that permits the retailer to build a grocery store in the city, WDTN reported Monday. Under the plan the city council adopted, Meijer received an exclusive option to buy about 17 acres from the city “to potentially develop a new general merchandise and grocery store in the future,” according to the Dayton, Ohio, suburb. Meijer can terminate the transaction if it determines during a due diligence period that building a store on the site would not be feasible.
Impulse find
Publix’s NFL-themed subs touch down again
The Florida-based grocer is continuing its tradition of offering sub sandwiches named for NFL teams in regions where it has stores. The grocer’s football-themed Pub sub lineup includes sandwiches for four teams: the Miami Dolphins, Tampa Bay Buccaneers, Jacksonville Jaguars and Atlanta Falcons.
Chicken tenders are the foundation of each of the four subs. The Dolphins sub combines that base with sweet sriracha sauce and Boar’s Head 3 Pepper Colby Jack Cheese. The Jaguars edition offers a flavorful kick with a combination of chicken tenders, coleslaw, bacon, cheddar cheese and barbecue mayonnaise. The Buccaneers sub also features bacon, plus cheddar cheese and a spicy gold sauce. And Publix’s sub celebrating the Falcons this season comes with sweet maple seasoning, bacon, peach preserves and sriracha mayo.
Publix pointed out that it has long had an affinity for the nation’s most popular sport. The supermarket chain launched box meals during the 1979 season, when the Buccaneers won their division title and scored their first playoff victory, and began customizing subs in 1992, a season when the Dolphins reached the AFC championship game.
Publix introduced its Buffalo-style chicken breast dip during the 2012 season when the Falcons advanced to the NFC championship game. The Jaguars made it to the AFC championship game during the 2017 season, when Publix rolled out its 20-piece plain fried chicken wing offering.
