Saladworks to expand presence at Brown's Wakefern supermarkets

Saladworks opened its first-ever location in a supermarket about a year ago, in a Philadelphia ShopRite owned by Jeff Brown. And now, after deeming the pilot a success, it plans to expand its presence at Brown-owned Wakefern Food Corp. locations in Greater Philadelphia.

So far, Saladworks restaurants are planned for Brown's ShopRite and Fresh Grocer stores in Philadelphia and Wyncote, PA, respectively. Another three or four Saladworks locations could follow at Brown's supermarkets within the next year, according to Saladworks CEO Patrick Sugrue.

"We're finding that salad bars are falling out of favor, they're not profitable for grocery stores, they have a lot of waste and they take up a lot of space," explained Sugrue. "In the same space or less than a money-losing salad buffet, we can place a full Saladworks restaurant and deliver our core menu to consumers - made exactly the way they want."

Lidl planning to take part of vacant Acme in Lansdale, PA

Lidl presented plans to Towamencin Township last month to take over about half of the former Lansdale, PA Acme that closed last summer. Acme occupied about 60,000 square feet.

"We're definitely looking at opening this year, this calendar year. That's the hope," said Sam Kachidza, Real Estate Manager of Acquisitions for Lidl U.S.

The site is just two miles from two existing full-service supermarkets - Giant and ShopRite, and two miles from Ralph's Corner Shopping Center, where Aldi is under construction.

So far Lidl has one store open in Pennsylvania - on MacDade Boulevard in Folsom, and the company is actively looking for more. Lidl stores in Lower Providence Township and Royersford are also planned.

Price Rite debuts new store designs and expanded offerings

Wakefern's Price Rite Marketplace held grand re-openings earlier this month for stores in Bethlehem, Allentown and Secane, PA where it's piloting new store designs, expanded fresh and private-label offerings, and enhanced price savings.

The grocer also said it is now offering a larger selection of Wholesome Pantry products, which include organic and gluten-free options.

The store designs include new decor, a market-style produce department, LED lighting, improved signage and new self-service checkouts.

PriceRite operates 66 supermarkets in nine states. It is part of the Wakefern cooperative that also includes more than 340 ShopRite, The Fresh Grocer and Dearborn Market stores.

ShopRite to open second Bensalem store if landlord squabble can get resolved

Reports say that ShopRite may soon take 75,000 square feet of the vacant KMart in Bensalem, PA. According to a recent report in the Bucks County Courier Times, township council members approved plans for the grocery store on the condition that ShopRite operator Brown's Superstore, Brookwood Shopping Center landlord Katz Properties, and neighboring landlord Korman Commercial Properties work out certain parking and traffic issues.

Although ShopRite is eager to move forward, negotiations between the two landlords have not been going well, and in April Katz Properties filed a complaint against Korman over parking and easement issues.

Supermarkets lead customer experience survey; Wegmans tops all companies

The Temkin Group, a research and consulting firm, said earlier this month that its 2018 Temkin Experience Ratings survey of 10,000 U.S. shoppers revealed that supermarkets were tops in customer experience ratings among 20 industries evaluated.

Supermarkets posted a rating of 78.5%, up from 78.1% in 2017. The industries near the top of the list include retail (74.4%), banks (73.1%), and parcel delivery (71.9%). A score of 80% or above is considered "excellent," 70% or higher is "good," and below 60% is deemed "poor."

Ratings are determined by customer responses in three main categories - success (can you do what you want to do?), effort (how easy is it to work with the company?), and emotion (how do you feel about the interactions?).

Overall, Wegmans turned in the top rating of all 318 companies included in the survey. The Rochester, NY-based food retailer had an overall customer experience rating of 86%. Among supermarkets, H-E-B, the top company in 2017, and Publix tied for second with a score of 83%.

Rounding out the top 10 scores among supermarkets for overall customer experience were Aldi and Wawa (82%), Trader Joe's and ShopRite (81%), Save-A-Lot and Food Lion (80%), Meijer, Kroger, Hy-Vee and Winn-Dixie (79%), Albertsons (78%), Safeway and Piggly Wiggly (77%), Stop and Shop (76%) and Vons (75%).

Upper Darby shopping center owner to propose $120 million renovation

Drexeline Shopping Center, an Upper Darby, PA retail center built in the 1950's, will undergo a $120 million renovation, according to property owner MCB Real Estate.

The new center will feature a redesign for current tenants like ShopRite, Crozer-Keystone Medical Center, PNC and Wells Fargo, and the addition of a Wawa Superstore, new office building, improved parking, pedestrian walkways, and a six-story self storage facility that looks like an office building.

According to MCB, Drexeline Shopping Center's annual economic impact is about $37 million, and it supports about 350 jobs. Upper Darby Township Mayor Thomas Micozzie believes that once the property is redeveloped, that annual impact will surpass $100 million, and will support 600 direct jobs.

"They will have to apply for a zoning variance," said Jeff Gentile, the township's director of licenses and inspections. "They would have to show compliance with a flood plain and go before the county's planning commission before it comes back to Upper Darby for final review. Then it will be brought to council for land development approval and building code review."

Thomas Judge, Jr., Upper Darby's Chief Administrative Officer, said earlier this month that no plans or applications have been filed with the township to date.

Investments in grocery-anchored centers grew in 2017

Investments in grocery-anchored shopping centers grew by 5.3% last year compared to 2016, according to a report issued by Chicago-based Jones Lang Lasalle (JLL). The increase makes the grocery-anchored segment one of the few retail sectors to see real growth.

The report also stated that grocery store openings declined by 29% in 2017, with several retailers cutting back on expansion plans and others shutting stores as they attempted to avoid bankruptcy.

"Grocery is considered to have a moat around it to defend against e-commerce, and because of that, these assets are seen by retail property investors as a safe investment," according to JLL.

A Supermarket News article points out investing in supermarket-anchored centers is not 100% safe, as Amazon and other e-commerce firms make inroads into the market. As a result, many shopping centers run the risk of dying, like their regional mall counterparts anchored by weak department stores.

Tops Friendly Markets (upstate New York) filed for bankruptcy last month, and Southeastern Grocers (Bi-Lo, Winn-Dixie, Harveys) may file this month. A&P, once a major player in the grocery industry, filed for bankruptcy and liquidated in 2015.

Not surprisingly, shopping centers anchored by strong operators like Whole Foods, Sprouts, Trader Joe's, Kroger, ShopRite, Wegmans and Publix are among those that have the greatest investment potential.

Amazon introduces home delivery from Whole Foods

On Thursday Amazon introduced free two-hour delivery of certain Whole Foods Market items between the hours of 8am and 10pm in select zip codes in Austin, Cincinnati, Dallas and Virginia Beach. Orders can be made via primenow.com or the Prime Now app.

Amazon expects to expand the service across the U.S. later this year.

According to Amazon, Prime customers can shop for thousands of Whole Foods items, including produce, bakery, dairy, meat, seafood, floral and everyday groceries. Select alcohol is also available for delivery. Prime members receive two-hour delivery for free, and "ultra-fast" delivery within one hour for $7.99 on orders of $35 or more.

Many traditional supermarkets already offer home delivery services. Ahold (Giant, Stop & Shop) was one of the originators with Peapod, ShopRite offers delivery provided by individual stores, and Acme partnered with Instacart earlier this year to delivery orders "in as little as two hours."

Kenny ShopRites giving bonuses as a result of tax reform

Kenny Family ShopRites, which operates six supermarkets in Delaware, announced earlier this month that as a result of the new tax reform legislation, it would give $150 to 1,000 of its non-management workers, and invest $150,000 in employee training and development.

According to President and CEO Christopher Kenny, "Our ability to provide bonuses and training to our employees demonstrates the far-reaching implications of this tax reform."

ShopRite tops in New Jersey with 139 stores

A story on NJ.com last month listed the 10 biggest supermarket chains (by number of stores) in New Jersey. Here's the list.

ShopRite - 139 stores
Acme - 77
Stop & Shop - 61
Target - 44
Aldi - 42
Walmart - 29
BJ's Wholesale Club - 23
Kings Food Market - 23
Save-A-Lot - 22
Key Food - 22

Stores in New Jersey with fewer locations include Whole Foods, Trader Joe's, Wegmans, Weis Markets, and soon... Lidl.

Wegmans tops Consumer Reports list again

Wegmans grabbed the top spot in a survey of grocery chains conducted by Consumer Reports, which received feedback from nearly 58,000 subscribers. Wegmans has held the top spot in the annual survey since 2006.

For 2017, the company received excellent ratings in categories such as cleanliness, fresh store-prepared foods, staff courtesy, checkout speed, produce quality and variety, meat/poultry quality, healthy options and local produce quantity.

Market Basket finished second, followed by Trader Joe's, Publix and Fairway Stores. Costco and Aldi received good marks, while Whole Foods, Kroger, BJ's, ShopRite, Giant and Weis were further down the list. Acme received poor marks, and Walmart finished last.

Sprouts Farmer's Market coming to Philly, South Jersey

Sprouts Farmers Market, an organic and natural foods grocer with 268 stores in 15 states, is reportedly planning on a new store in Philadelphia, PA and Moorestown, NJ. Both stores would represent the first in each state.

The Philadelphia store is planned for Lincoln Square at Broad Street and Washington Avenue in South Philadelphia, a mixed-use development that Kimco is involved in. The Moorestown store would inhabit part of the space in the Moorestown Mall that Macy's recently vacated.

Sprouts expansion to the northeast comes at a time when sales of organic food has been soaring in the U.S. Until recently, Whole Foods has owned most of the organic market in Greater Philadelphia. However, Mom's Organic Market and bFresh have recently entered the market, and several traditional and discount grocery stores - like Aldi and ShopRite - have been increasing their organic and natural foods offerings. Newcomer Lidl is expected to offer a significant variety of organics, as well.

What this all leads to is "a price war of unprecedented proportions," according to Burt Flickinger III, managing director at Strategic Resource Group.

Nationally, Sprouts had reported that they have 63 sites approved for new stores and 43 signed leases "for the coming years."

As reported previously, Albertsons (Acme) is exploring an acquisition of the Sprouts chain.

Acme to close Burlington, NJ store

Acme announced that it would close its Burlington Township, NJ store by February 16 due to under-performance. With the closure last year of Mattson's Market, a family-owned store that had been in existence since the mid-20th century, ShopRite and Walmart are the remaining grocery stores servicing township residents.

Acme to open new store in South Philly property formerly occupied by ShopRite

Acme Markets and The Goldenberg Group announced today that the former ShopRite in South Philadelphia's Snyder Plaza Shopping Center would be renovated and opened as a new Acme supermarket in 2017. The Goldenberg Group owns the property.

The 54,415 square foot store is slated to have a beer and wine shop, and a Starbucks café. In addition, the store's exterior will receive an updated façade and new points of entry. Improvements are planned for other parts of the shopping center as well.

Earlier this year ShopRite relocated to a bigger store on Oregon Avenue that was formerly occupied by Pathmark.

Woman sues ShopRite after falling on string bean

The New York Daily News reported last month that a woman is suing ShopRite after allegedly tripping over a string bean two years ago. She claims that she was shopping in the store's produce section "when suddenly, without warning, she slipped on a string bean on the floor of the store and violently fell to the floor."

A ShopRite store in Bergen County, NJ is accused of allowing string beans to fall out of the self-service bins and failing to provide walk-off mats or similar safety devices in a spot of the store they knew to be "ultrahazardous." In addition, the suit alleges that ShopRite was negligent by allowing string beans to remain on the floor.

ShopRite has not commented on the case, nor has the string bean.

ShopRite opens new stores in Philly and Brookhaven, PA

Earlier this month ShopRite opened a 60,000 square foot store in South Philadelphia's Whitman Plaza, replacing an older ShopRite about a mile away. The new store is in a former Pathmark location that Wakefern acquired during A&P's bankruptcy auction last year.

The renovated supermarket includes the standard grocery departments plus an in-store cafe, on-site dietition, and meal planning services for customers. It also offers ShopRite from Home internet shopping with home delivery and store pick-up options.

In August, ShopRite opened in Brookhaven, PA, also in a former Pathmark location. At 63,000 square feet, the store is open 24 hours a day and offers a beer garden as well as grocery delivery services. A Giant supermarket is under construction across the street.

ShopRite not coming to Admiral Wilson Blvd in Camden

It was announced earlier this month that the much anticipated ShopRite planned for Admiral Wilson Boulevard in Camden won't be coming after all. City officials announced three years ago that the supermarket would anchor a new shopping center, create permanent jobs and provide the community with access to fresh, affordable food.

An explanation for the deal falling apart from the developer or tenant was not provided to reporters. However, Actega North America, a Delran-based industrial company, was approved recently to receive $40 million in state tax incentives if it agrees to build a 130,000 square foot headquarters on the site. According to the company the move would create 21 jobs.

ShopRite, Weis, Grocery Outlet add stores

It was announced last month that Village Super Market, a Wakefern member that operates 29 ShopRite supermarkets, signed a lease for a 90,000 square foot store that will anchor a new mixed-use development in Old Bridge, NJ. The store is slated to open next summer. Plans for the development include 2,000 residential units and more than 500,000 square feet of retail space.

Weis announced last month that it plans to purchase five Mars stores in Baltimore County, Maryland. When the purchase is complete (in late July, according to the announcement), Weis will have nine stores in the county. Mars currently operates 13 stores, including the five stores to be closed. The company closed four stores earlier this year.

Grocery Outlet, the California-based chain that purchased Amelia's in 2012, celebrated its 50th Pennsylvania store with its opening last month in Quakertown's Trainer's Corner Shopping Center. Sears Hardware had previously occupied the building. A Grocery Outlet employee said the company plans more stores, with an expansion goal of 80 throughout New Jersey, Maryland and Virginia.
  

Supermarkets increasing their presence in power centers

Shopping Centers Today, an ICSC publication, recently published an article explaining that U.S. developers are changing the traditional shopping center retail mix by moving neighborhood stores - namely grocery retailers - into power and lifestyle centers. The article says that the ground was broken about a decade ago by stores like Costco, Target and Walmart, all of which offer supermarket shopping in a warehouse style or as a supplement to discount retail.

Several trends were cited for the changing retail mix, including the significant drop off in neighborhood shopping center development as well as the recent expansion of smaller-format, natural and organic grocers. More grocers and less neighborhood shopping centers being built means that these new formats have to go somewhere other than neighborhood centers.

The trend may be troubling for traditional supermarkets like Kroger, ShopRite, Giant and others. It's much easier for a 15,000 - 25,000 square foot small format grocer to find a spot in an existing power center than it is for a 50,000 - 100,000 square foot store.

In addition, power center owners have realized that customers typically visit grocery stores at least twice per week, and the increased visits benefit all tenants. An added benefit to landlords has been the resulting cap rate compression brought on by the addition of grocery retail. 

Wegmans and Aldi are cleanest stores in Philly, Bucks

The Philadelphia Inquirer examined two years of health department reports for large grocers in Philadelphia and Bucks Counties and determined that Wegmans and Aldi were the cleanest supermarket chains.

Fresh Grocer, Whole Foods and Shop N Bag ranked at the bottom of the list, while Giant, ShopRite and Acme were in the middle of the pack.

According to Supermarket News, a recent study found that 83% of customers only pick retail outlets that appear clean to them, and 33% of customers said that have left a store that did not seem clean.

The results:

1. Wegmans

2. Aldi

3. Walmart

4. Target

5. Giant

6. Save-A-Lot

7. Thriftway

8. ShopRite

9. Acme

10. Fresh Grocer

11. Whole Foods

12. Shop N Bag