Fresh food innovation

Even as price tops most shoppers’ agenda when buying groceries, that hasn’t stopped consumers from being willing to devote more of their budget to products they prefer, research from Deloitte shows.

More than two-thirds (68%) of shoppers who participated in a recent survey conducted by the consulting firm indicated they are willing to pay a premium for fresh food, a year-over-year increase of seven percentage points. A similar proportion (64%) of grocery industry executives polled by Deloitte said the fresh department is the most strategically important area for their sales growth plan during the next 12-36 months.

While people are willing to spend more for what they feel is higher-quality food, cost concerns remain paramount, with 93% of the shoppers Deloitte surveyed saying price is their top purchase driver.

The findings, which are laid out in an October report titled “Fresh Food at the Intersection of Trust and Transparency,” indicate that consumers especially value fresh food. People who are willing to pay more for fresh products are open to spending 28% more for those types of goods than for frozen, canned or processed options, according to data the consulting firm collected from a July survey of 2,000 shoppers.

The researchers also found that consumers are willing to pay an even larger premium for sustainably produced fresh food. Participants in the survey indicated that they would be willing to spend an average of 30% more for these goods, but grocery executives said they believed shoppers would be willing to pay just 12% extra.

Deloitte’s data on grocery executives’ sentiment is drawn from a survey this summer of 100 executives at retailers with more than 10,000 employees.

Even as they expressed willingness to dig deeper in their wallets to get what they most value when shopping for groceries, consumers said they feel food prices have gone up excessively. The vast majority of participants in the study said they think they’re being asked to pay more than necessary at the grocery store, with higher prices going more to pad profits than to defray higher costs from suppliers.

Those findings are in line with research retail analytics firm Dunnhumby released last year showing that consumers overestimated the rate of grocery inflation and retailers' profitability.

Consumers also told Deloitte that they feel grocers play a central role in making sure they have access to food that is safe. Thirty-seven percent of shoppers said they feel trusting a grocery store to ensure food safety is more important than brands (30%) or government regulatory bodies (24%).

In addition, shoppers place more trust in their primary grocery store than in other types of retailers, including clothing, convenience and department stores, and mass merchants, Deloitte reported.

“Understanding consumer behavior and preferences when it comes to organic, locally grown and sustainably sourced fresh food can help grocers differentiate themselves from the competition, not just on price, but as a trusted source of information,” Daniel Edsall, global grocer leader and principal at Deloitte, said in a statement.

Deloitte’s research also indicates that people want grocers to focus on their health. Eighty percent said they look for foods that provide nutrition profiles that reflect their individual needs, and 64% said they think fresh food can have benefits similar to medicine. Almost 40% of shoppers said they are willing to share some health information with grocers in return for personalized fresh food suggestions, Deloitte found.

Costco’s famous rotisserie chickens are getting a glow up: The widely recognizable domed rigid plastic containers housing the chickens are being replaced with flexible plastic bags — at least in some locations.

A display sign accompanying the chickens at the company’s Issaquah, Washington, store indicates that the packaging switch will result in a 75% reduction in plastic use, saving more than 17 million pounds of resin annually, according to photos taken by sister site Packaging Dive. It also estimates “a carbon reduction of 4,000 metric tons,” equivalent of removing 1,000 trucks from the road.

Costco did not respond to multiple requests for comment from Packaging Dive about the new packaging, including if and when it will be implemented across the country.

The Flexible Packaging Association noted via email that flexible packaging uses the least amount of packaging that is necessary to protect products by optimizing the volume and weight, which results in the smallest package-to-product ratio. In addition, many rigid plastic containers aren’t currently recyclable, which can result in more material going to disposal than by using flexible, stand-up pouches, Alison Keane, FPA president and CEO, wrote via email.

“FPA is not surprised that Costco made the switch from [rigid] plastic packaging to flexible packaging, as in addition to using less plastic overall, switching to flexible packaging also has other environmental benefits,” Keane said. “It reduces water and energy consumption and greenhouse gas emissions during production and storage of the package and reduces the product manufacturers greenhouse gas emissions during transportation.”

 

Last July, Costco said that it had recently adopted packaging guidelines as part of its sustainability efforts, with the initial focus on its in-house Kirkland brand. “The goal is to reduce packaging waste, while still protecting products, ensuring food safety and complying with laws and regulations,” said Tim Wahlquist, who oversees Costco’s packaging team, in a statement at the time.

The guidelines include examining where less packaging material can be used, whether boxes and plastic containers are made from recycled materials and whether virgin box fiber comes from certified forests. They also look at whether new packaging is recyclable or certified compostable and whether the labeling is clear to help consumers properly dispose of packaging.

While the overall goal is to reduce plastic packaging, such as by lightweighting or switching substrates, Wahlquist noted in his statement that sometimes plastic still makes the most sense for product preservation: “Until feasible alternatives are available, Costco’s goals are to have plastic packaging made from recycled content and be widely recyclable.”

WestRock revealed last summer that Costco asked it to develop fiber-based handles as an alternative to plastic ring carriers for multipack bottles and jars. WestRock then developed the EnduraGrip and Cluster-Clip fiber “dog bone” carriers, which it said are curbside recyclable.

Last October, Costco reached an agreement with ESG investing firm Green Century Funds and pledged to release data regarding Kirkland’s total plastic footprint, broken down by plastic type, and how much recycled content is in its plastic packaging; the data release is expected by July. Costco also committed to developing a five-year action plan detailing steps to reduce Kirkland’s plastic use, which is scheduled for release in December.

“Despite Costco’s recent commitments, more work is needed to address the company’s exposure to single use plastics,” Green Century said in a statement at the time.

Costco operates more than 850 warehouses globally and sold 137 million rotisserie chickens in 2023, an increase of 20 million chickens compared with 2022, according to executives at January’s annual shareholders’ meeting where they discussed full-year financial results.

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By KeHE

Health and wellness trends are at the forefront of modern-day consumers’ minds, leading to a direct increase in the demand for Fresh food products. The shift in consumer preference toward Fresh demonstrates the power of the category and the growing influence that perimeter products hold. In fact, research shows that the perimeter market is forecasted to see steady, consistent growth through 2028, with a 4.4% increase leading into 2024 and a 2.9% increase into 2025. As consumer demand for Fresh products continues, the industry and its main players will have to adapt to meet consumers with the high-quality products they’re looking for. 

Fresh product selection plays a crucial role in attracting retail traffic and is an indicator of a store’s quality in the eyes of consumers. Research shows that 70% of shoppers believe that perimeter displays and products enhance their overall shopping experience, while 80% use the quality of a grocer's Fresh products as a yardstick for assessing the overall quality of a store. Retailers and brands that focus on offering high-quality and well-presented Fresh products in-store are poised to benefit from perimeter sales.

Here are some key trajectories and trends in the Fresh food market that will assist brands and retailers in better understanding and appealing to customers.

Catering fresh food products to meet consumer preferences

Fresh produce and fresh meat, poultry, and seafood will continue to dominate the perimeter market, which means these products are crucial to retailers and help shape the type of products that brands provide. What’s more, consumers are increasingly demanding ready-to-eat meals that not only provide convenience but also contain healthy ingredients, leading to a significant shift in the quality of these products. Research shows that 67% of consumers purchase prepared foods as a way to treat themselves, reflecting the importance of not only having a variety of ready-to-eat meals but also a range of options that are healthy but still convenient. The convenience trend doesn’t seem to be going away any time soon with KeHE Distributors^® listing Redefined Convenience as a key Macro Trend of 2024.

The trajectory of fresh food products

Brands, retailers, and distributors will have to adjust their long-term strategies accordingly to stay competitive in the Fresh food and perimeter space. The companies best positioned to capitalize on the growth of Fresh products develop strategies that combine scale, technology, and trend forecasting in order to develop diverse offerings across product categories, channels, and geographies.

AI is predicted to become central to consumer shopping experiences causing in-person and eCommerce shopping experiences to grow together. This will streamline the way that consumers shop for products and lead to less time spent shopping in person. However, this shift will cause consumers to be more intentional with the time they spend in stores, further emphasizing the value of Fresh and perimeter products, especially as 40% of consumers say they would not allow another shopper to pick out their fresh produce and foods.

Beyond digital tools simplifying the consumer shopping experience, AI and other online platforms will open the door for consumers to be engaged in new ways. Creative meal planning and online grocery shopping are predicted to become ways to not only fulfill consumer wishlists, but also avenues to push consumers out of their comfort zones to try new products and break them out of the ruts that are rooted in decision-making.

KeHE supports retailers and brands to meet consumer needs

As the grocery environment is constantly changing, retailers and suppliers need to stay on top of consumer macro trends to remain competitive. KeHE recognizes the significant role that trends play in the grocery industry and has the know-how to lead both groups in a successful direction.

“In the fast-paced world of food distribution, maintaining a competitive edge requires brands and retailers to adapt their strategies and forecast upcoming trends to engage consumers,” said Ben Friedland, a marketing retail expert with a collective twelve years of experience at Whole Foods, Lucky’s Market and currently, KeHE Distributors. “This is particularly crucial in the realm of Fresh food, where sourcing and placement of these products can be challenging as demand grows among retailers and brands. This highlights the value of an experienced distributor who already knows the ins and outs of the industry.”

Through KeHE’s Category Managers and high-touch resources, those who partner with an experienced distributor have access to leading industry insights including upcoming trends, consumer preferences, and marketing guidance.

To learn about the new KeHE Fresh Marketplace™ and preview Fresh products in the catalog, please visit https://www.kehefreshmarketplace.com/.

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Source: based on Circana InfoScan^® Reviews; US Census Bureau, Economic Census/Mintel

Source: Kantar Profiles/Mintel, August 2023

With the rise of at-home cooking during the pandemic continuing alongside concerns about food prices, shoppers are turning to a combination of scratch cooking with semi- or fully-prepared items from grocery stores to craft their meals, according to new research. 

A “hybrid meal” could be sushi from a grocer’s deli counter as the main dish along with items like rotisserie chicken from the store with homemade mashed potatoes, or a pre-packaged salad with a sandwich made at home. FMI – The Food Industry Association says hybrid meals “can be one part of a meal or a complete meal for breakfast, lunch or dinner.”

This “hybrid meals” approach to at-home preparation is playing a growing role in consumers’ food-at-home eating.

In 2023, more hybrid meals accounted for consumers’ dinners than the previous year, while making dinner totally from scratch has dipped, according to the latest findings by FMI. 

“The shift to preparing meals at home, particularly in this hybrid method, has also cut into [the] consumption of restaurant meals,” Rick Stein, the trade group’s vice president of fresh foods, said during a recent press call. 

The rise of hybrid meals comes at a time when grocers have been beefing up their foodservice options. A quarter of surveyed shoppers said they are replacing restaurant meals with foodservice options, up from 17% who said the same in the previous year, per The Power of Foodservice at Retail report, which was published earlier this month. The report is based on a survey of 1,435 U.S. adult grocery shoppers between Sept. 13-22.

Grocers are already jumping on the trend of highlighting their deli-prepared options. ShopRite has been rolling out its Fresh to Table concept, which emphasizes a one-stop-shop for ready-to-cook, ready-to-heat and ready-to-eat options alongside private label items, to more of its stores this year. Department displays for the concept carry messages like “Rah, Rah, Rotisserie” and “Made with love for later.” 

Cingari Family ShopRite, a family-owned chain with a dozen Connecticut stores, has said the price point and size make its prepared salads a popular alternative to ones from restaurants. 

Deli dollar sales grew to $49.9 billion in the 52 weeks that ended Oct. 27, up from 4.2% during the same period a year ago, according to NielsenIQ data cited by FMI in the report.

“It’s clear that shoppers increasingly appreciate the convenience and value that foodservice at a grocery store offers, whether it be to help round out the home-cooked meal with freshly made sides or supplying an entire meal that customers can cut can eat at home, which is cheaper than food at restaurants,” Stein said during the recent press call.

The appeal of foodservice largely links to cost concerns. Despite the rate of inflation easing in the past few months, 72% of surveyed shoppers express concern about rising food prices at grocery stores, FMI noted in another recent report. 

Foodservice is also standing out as an opportunity for some consumers to make choices aligned with health and well-being. FMI’s research found that almost two-thirds of shoppers said they shop for deli-prepared foods with at least some focus on nutritional value.

Already, retailers have invested in chefs and specialty staff, increased their space allocation and enhanced their variety of food options in an effort to re-energize food service departments, Stein said.

The grocery industry still has some areas to improve upon, FMI noted. Grocers’ foodservice can become even more appetizing by providing a wider variety of cuisine, online ordering capabilities and easy pick-up or delivery options, the trade group found. Grocers need to switch to a restaurant-like mentality for foodservice and deli, Stein said. 

Meal planning, in particular, is an area where consumers struggle, Stein said, noting that bundling ingredients together can help. In addition to bundles, FMI’s research found that more heat-and-eat choices, meal-focused end cap displays and meal-planning tools on retailers’ apps are top consumer picks. 

Other strategies highlighted in the report include:

• Serving up “signature” foodservice items 
• Highlighting how far shoppers’ dollars go at retail compared to restaurants
• Offering up an online foodservice menu like a restaurant 
• Having dedicated marketing focused on spotlighting foodservice 
• Drawing attention to items and attributes that better meet shoppers’ nutrition and health needs.

Hybrid meals appear to have a bright future. More than half of surveyed consumers said they plan to eat more at home (53%) and cook more at home (52%) in 2024. Meanwhile, only 14% said they plan to dine out more this year, per FMI’s research. 

“Clearly shoppers are responding to these changes and foodservice at retail is more on their radar than ever before,” Stein said. 

Trader Joe’s has increased its banana prices from 19 cents individually to 23 cents. The price change occurred recently and “still represents a tremendous everyday value” for bananas, the spokesperson, Nakia Rohde, wrote.

“We only change our prices when our costs change, and after holding our price for Bananas at 19¢ each for more than two decades, we’ve now reached a point where this change is necessary,” Rohde wrote.

The 21% increase for individual bananas at Trader Joe’s is notable as grocers have long spotlighted bananas in their marketing efforts as a way of signaling low prices to shoppers. 

Over the years, Trader Joe’s proudly touted its previous individual banana price. The grocer’s website shares the story of a long-time customer in Sun City, Arizona, who nearly 25 years ago told then-CEO Dan Bane that she wanted to be able to buy bananas individually.

“Back then, we thought 19¢ was a fair price for one banana,” the grocer noted. “Decades later, Bananas are still only 19¢ each, every day, in every store. Heck, if you’re feeling really wild, you can buy a big bunch of five beautiful bananas for less than a buck!” 

Now, five bananas cost $1.15.

Keeping prices the same over many years is difficult to do in an industry where inflation, supply chains and consumer promotions are constantly changing. But it does happen in rare cases. One other notable example is Costco’s $1.50 deal for a hot dog and a soda, which has been in place since 1985. 

While the banana prices are now higher, Rohde noted that Trader Joe’s has lowered prices for other items.

“[W]e have been able to negotiate costs for a number of our products, and have lowered our retail prices accordingly. A few examples: Raw Almonds are now $3.99 a pound, down a dollar; Romaine Hearts are now $2.99, down 50¢; Organic Tri-Color Bell Peppers are $4.49, a reduction of 50¢; and Green Onions are now 99¢, our lowest price in at least a decade,” Rohde wrote.

While consumers continue to worry about food prices, grocery inflation has calmed in recent months. In February, food-at-home prices rose at a 1% annual rate — the slowest rate of grocery inflation since June 2021 — according to Consumer Price Index data.

Home Chef announced in early April the launch of a new sustainability-focused program that will redirect surplus food and reduce waste in its manufacturing and production process. The meal kit company partnered with local nonprofit organizations across its four facilities to streamline the food donation process.

The effort builds on Home Chef’s commitment to reach the USDA and EPA’s goal of a 50% reduction in food waste and loss by 2030.  

The meal kit maker’s tie-ups with local nonprofits across the country will minimize waste within its facilities and “maximize” its food donations, Cody Ferrantino, Home Chef’s program manager of sustainability and impact, said in a statement. 

Home Chef’s Baltimore facility will donate food to 4MyCiTy, a nonprofit addressing organic waste’s impact and food security, and its Atlanta location will provide food to Reflections of Trinity, a weekly food and grocery donations distribution service. The company’s San Bernardino, California, location entered a tie-up with food bank nonprofit Community Action Partnership, and the Chicago facility donates food to Rescuing Leftover Cuisine, an organization that transports and delivers food to other nonprofits serving food-insecure communities.

Other partnerships allow Home Chef to recycle organic waste through methods like composting and anaerobic digestion, the press release noted. 

The meal kit company’s products sold in over 2,400 Kroger stores are also recycled through the grocer’s Zero Hunger | Zero Waste program. 

To prevent food waste on the customer end, Home Chef said its culinary team continues to carefully portion and consolidate the ingredients in its meal kits to minimize surplus.

As food waste initiatives continue to grow among food retailers, efforts have reached a national level. In February, FMI — The Food Industry Association threw support behind the Draft National Strategy for Reducing Food Loss and Waste and Recycling Organics drafted by the U.S. Environmental Protection Agency, U.S. Department of Agriculture and the U.S. Food and Drug Administration.

This National Strategy aims to reduce food loss and waste, increase recycling of organic materials, reduce greenhouse gas emissions and more, with FMI noting in its comments about the National Strategy that it can play a key role in enhancing the efforts of already existing and well-established food waste programs.

Weis Markets is bringing technology-driven salad bars supplied by Picadeli of Sweden to eight of the Northeast supermarket chain’s locations, according to officials of the companies.

The first two of the salad bars opened in early April at stores in York and Bellefonte, Pennsylvania, and six more are set to debut during the next few weeks, Weis Markets Director of Produce Kevin Weaver said in an interview.

Weis Markets’ decision to bring Picadeli’s artificial intelligence-based salad bar concept to several stores reflects shoppers’ growing interest in being able to assemble a ready-to-eat meal themselves when visiting a grocery store, Weaver said.

“The push pre-pandemic was for more bulk foods, more service stations, [and then] the pandemic got everybody really concerned” about safety and retreated from self-service, Weaver said. “And now the pendulum is swinging back to ‘I want more choice, I want to be able to customize.’ And so service departments are making a resurgence and salad bars are making a resurgence.”

Picadeli sets its concept apart from traditional salad bars by supplying all food for the bars and maintaining ownership of the stations, which are equipped with closeable hoods to maintain cleanliness and keep items fresh. The company also tracks consumption patterns to cut down on waste and tailor the selection of foods to local tastes.

Weis Markets, which runs 196 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia and Virginia, joins retailers including Albertsons, Schnuck Markets and Coborn’s in signing on to bring Picadeli salad bars to some of their stores. About one-fourth of Weis Markets’ stores currently have traditional salad bars — a lower proportion than before the pandemic, according to Weaver.

In addition to the two Weis Markets locations that unveiled Picadeli bars to the public on Wednesday, stores in Parkville, Perry Hall, Baltimore and Frederick, Maryland, and Huntingdon Valley and Clarks Summit, Pennsylvania, are also slated to receive the stations.

Weaver noted that the retailer is treating its rollout of the Picadeli salad bars as a test.

“We’re going to see exactly where it plays the best,” he said.

Picadeli has installed its salad bars in about 100 supermarkets and other locations in the United States and hopes to bring them to as many as 2,000 locations during the coming years, Picadeli U.S. CEO Patrik Hellstrand said in an interview.

“Our journey is a decade-long journey, at the very least. We have a very long plan of how to get there, and we're very patient,” Hellstrand said.

Grocers are building out their fresh meat offerings through full-service counters as shoppers continue to seek the classic butcher shop experience from their local supermarket.

As ramping up the in-store experience becomes a vital step for grocers post-pandemic, full-service meat counters has become a way to beef up their offerings and draw in customers with fresh cuts as well as human connections.

Fresh meat sales in December ticked up 2% compared to the same month last year, reaching $5.9 billion while processed meat sales dipped 4.4%, totaling $3 billion, according to Circana data cited by 210 Analytics.

As grocers face growing competition from mass retailers for meat department sales — the latter gained 2% in meat department sales from 2019 to 2023 while traditional grocery saw sales shrink 3% — meat counters are one way they can cut a larger slice of fresh meat sales.  

Fareway Market, for example, has been capitalizing off the growing meat industry in recent years by opening Fareway Meat Market stores, each with a “second-to-none, full-service butcher counter,” according to a recent press release. Shoppers don’t have to go to a Meat Market location to get the full-service counter experience: Fareway’s regular grocery stores have a virtual meat counter so customers can “learn how to be best prepared for [their] next trip to Fareway,” the grocer’s website noted. 

Fareway’s butchers, like many meat experts staffed behind other grocers’ full-service counters, are available to assist customers. Butchers and trained meat associates offer guidance on making premium selections, provide advice or inspiration and address special requests, FMI — The Food Industry Association’s 2023 Power of Meat report said. 

Here’s a breakdown of the most popular items shoppers purchase from grocer’s full-service meat counters, and a look at the category’s sales over the past few years.

Data insights

Consumers gravitate towards full-service counters rather than self-service cases mainly when they are seeking out advice or have questions for the butchers, such as the thickness of cuts or how much they should purchase. Aside from communicating with a grocer’s meat experts, a full-service counter provides a place for “premium” meat cuts to stand out, according to FMI’s findings. 

 

Fresh meat sales skyrocketed in 2020 to more than $55 billion, according to Circana data. While still increasing slightly for the last two years, meat sales saw slower growth just shy of 5% in 2022 and less than 1% in 2023. 

 

Stand-out grocers

A peek into the cutting room

One of Whole Foods Market’s most show-stopping locations resides in Manhattan where the retail destination has not only grab-and-go meals and opportunities for in-store dining and education but also a meat-cutting room on full display. 

The window puts full-size cuts of meat as well as the grocer’s trained butchers in full view of customers to both inspire and educate. Shoppers have the opportunity to ask the butchers questions about selecting cuts, portion sizes, thickness, marinades and cooking guidance.

Carrying on a North American butcher legacy

Canadian grocer Freson Bros. views its meat department as not just a counter but as a part of its history. Alongside meat cuts like cross rib roasts, porterhouse steaks and bone-in sirloin steaks, Freson operates a dry age hanging beef program in every store. 

The grocery chain offers custom orders of Alberta dry-aged carcass beef and sources from Alberta’s livestock for its beef, pork, chicken and turkey selections. Freson also exclusively offers sausages made in-store.

 

 

 

 

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 What's trending?

When faced with the choice between fresh meat and processed meat, customers seem much more likely to select fresh meat. While both categories saw year-over-year dips in volumes in 2023, processed meat saw a steeper decline of 3.2% compared to fresh meat, which dipped just 1.4%, according to Circana data cited by 210 Analytics.

With grocers eyeing ways to offer in-store experiences and shoppers gravitating toward fresh meats, establishing an eye-catching full-service meat counter could be in grocers’ best interests. FMI’s 2023 report noted that these full-service counters give food retailers a “perceptual advantage.”

Dollar General now offers fresh fruits and vegetables at more than 5,000 locations, pushing the discount chain past a goal it laid out early last year.

The retailer is also deploying AI-based perishable food-ordering technology from Shelf Engine and plans to bring the platform to about 3,000 stores by the end of fiscal year 2023.

This push to bring fresh food to more stores has come as the retailer has shaken up its strategy in a bid to improve its financial performance. The company runs more than 19,000 stores in 48 states and is continuing to expand its footprint, although it plans to add fewer stores in 2024 than it did last year. Dollar General posted better results than analysts had expected during its latest quarter, when it opened 263 stores, but would have lost market share during the period without the new locations, according to analysts.

Jeffery Owen, Dollar General’s former CEO, announced the company’s intention to offer produce in at least 5,000 stores by the end of 2023 during an earnings call last March — just a few months before he was dismissed from his post “to restore stability and confidence.”

In a January press release about its produce expansion, Dollar General drew attention to the role it plays in providing access to grocery staples. About 80% of the retailer’s stores serve communities with a population of 20,000 or less, and people in these areas often depend on Dollar General to purchase essentials like milk, eggs, cheese, and frozen and canned vegetables, the company said.

“We are constantly looking for ways to better serve our customers and one of our top priorities is to ensure the communities we call home have access to fresh, affordable, and convenient food options,” Emily Taylor, Dollar General’s executive vice president and chief merchandising officer, said in a statement. 

Dollar General added that it now distributes produce at more individual locations than any other grocer or mass retailer in the United States, although the company offers consumers a much smaller selection of perishables than its competitors. The retailer’s “curated assortment” of fresh fruits and vegetables includes tomatoes, apples, strawberries, potatoes, lemons and salad mixes, according to the press release.

In addition to adding fresh foods to additional locations, Dollar General has taken steps to boost sales of frozen and refrigerated items through an internal distribution initiative known as DG Fresh. The company believes DG Fresh could allow it to eventually bring produce to more than 10,000 stores, Owen said during an earnings call last August.