Giant/Martin's and Stop & Shop to add robots that roam store aisles

Giant Food Stores announced earlier this month that each of its Giant/Martin's and Stop & Shop stores will soon feature a 6-foot, 5-inch, 130-pound robot named Marty.  Marty will scan the aisles for fallen items, and will move around slowly enough for customers to take selfie's with it, according to President Nicholas Bertram.

The effort is being hailed as the largest front-of-store robot rollout in the world.

Badger Technologies CEO Tim Rowland explained that Marty can detect objects and movement, and will avoid bumping into shoppers. If something falls off a shelf, Marty will find it and activate an alert system that will result in an employee coming to pick up the item. Badger Technologies partnered with Giant's parent company, Ahold, to create the robot.

Marty also has the capability to scan shelves for out-of-stock items, but that is not part of the initial rollout.

According to Giant, the new technology will not replace employees; rather, it will "replace tasks."

Last October, Walmart said that 78 stores had a self-driving robot cleaning floors, and that they planned to expand the technology to 360 stores.

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."

Ahold suspends Bfresh small format concept

Published reports last month stated that Ahold Delhaize, the parent company for Giant, Food Lion and Stop & Shop, is suspending its small-format Bfresh brand and will not open Bfresh stores in Philadelphia, as previously announced. The company still plans to make use of the spaces it has leased, though.

In addition, Ahold's 3,700 SF Everything Fresh grocery store on Walnut Street in Center City has closed.

Last year the company announced that it would open Bfresh stores at Second and South Streets, Bainbridge Street and University City.

Kroger - Ahold merger rumors have started

Last week the Cincinnati Business Courier reported that an analyst report out of Europe speculated that Kroger was pursuing a merger with Ahold Delhaize (Giant, Food Lion, Stop & Shop, Peapod, among others). On Wednesday of last week, Supermarket News reported that it was not able to verify the substance of the claim.

Analysts have talked about such a merger before, suggesting that the two powerful food retailers could gain additional scale and more effectively fight competitors like Walmart, Aldi and Amazon-Whole Foods. A merger would also provide Kroger with access to Peapod and its e-commerce platform.

As reported in Supermarket News, Ahold and Kroger have similar operating strategies in the U.S., both have invested in lower prices and have developed distinct private brands. Although the two companies compete in the Southeast, Ahold's Northeast store base would compliment Kroger's existing footprint.

Ahold's small format Bfresh stores coming to Philly

It was reported last week that leases were signed for Ahold Delhaize's small-format Bfresh store at 2300 Bainbridge Street and 3401 Chestnut Street, both in Philadelphia.  The Bainbridge store will be on the ground floor of a new condominium complex, and the Chestnut Street location is where Eastern Mountain Sports recently closed. A store planned for Second and South Streets was announced last year.

There are currently three operating Bfresh stores in Boston, MA. Fresh Formats, a subsidiary of Ahold Delhaize, has operated the Everything Fresh grocery store on Walnut Street in Philadelphia since 2014. The store serves as a testing ground for the company's small-format concepts.

Weis Markets unveils in-store pub, ice cream shop and drive-thru pharmacy

Weis Markets unveiled its "Community Market," a new store prototype, last week in Enola, PA, near Harrisburg. The 65,000 square foot store incorporates an in-store pub, ice cream shop, juice bar and expansive food court.

According to a PennLive.com story that was reported in Supermarket News, the store is designed to take Weis' service to the next level.

"We are sort of a middle-of-the-road supermarket," said CEO Jonathan Weis in the PennLive story. "We always have one eye on pricing and we compete with massive competitors such as Royal Ahold, Walmart and Wegmans, and others who do a tremendous volume. So that tempers our thinking. But, on the other hand, we have to be on trend. We want to be interesting, not boring or dull. We just have a philosophy that we're not going to be afraid to fail."

The new store protoype also includes a drive-thru pharmacy, a fuel center, and online ordering for in-store pickup. The company says it intends to incorporate elements of the new prototype into existing stores.

Walmart, Kroger and Costco top list of 75 food sellers in US and Canada

Supermarket News released its annual list of the Top 75 Retailers and Wholesalers. The list ranks the largest sellers of food (by revenue) to be consumed at home in the United States and Canada.

Here are some bulleted highlights that I have copied word-for-word from Supermarket News. I would suggest visiting their website for the complete study.

• Natural and organic foods are still growing, but the retail beneficiaries aren't necessarily who they used to be;
• Formats serving low-income shoppers - while still some of the industry's fastest growers due to unit growth - have seen their sales in disarray as their shoppers deal with reductions to federal food benefit programs and rising costs for housing and health care, while a slowly improving economy may be lifting some of their shoppers out of the channel; and
• While Internet retailing remained a relatively small share of the pie, it became the subject of outsized ambitions by some of the industry's leading players, and a serious threat from digital natives like Amazon, which at year-end announced plans for a leap into the physical food retailing world. Initiatives to add click-and-collect shopping capabilities speak to a trend among food retailers to improve the convenience of their offerings to shoppers, and drive more sales from existing units, sources said.
• All this occurred while a nearly unprecedented stretch of deflating prices triggered chaos throughout the supply chain - an event analysts say could dampen sales at least through the first half of 2017.

Here are the top 10 retailers and wholesalers, plus other notable companies on the list.

1.  Walmart

2.  Kroger

3.  Costco

4.  Albertsons

5.  Ahold Delhaize

6.  Loblaw Cos.

7.  Publix

8.  Target

9.  C&S Wholesale Grocers

10. Walgreens

Also:

12. CVS

15. Dollar General

16. Supervalu

16. Wakefern

19. 7-Eleven

20. Trader Joe's

21. Aldi

22. Dollar Tree

26. BJ's Wholesale Club

30. Rite Aid

30. Wegmans

44. Weis Markets

54. Grocery Outlet

56. The Fresh Market

61. Amazon

Three Wakefern members were listed as separate entities on the list, including Saker ShopRite (56), Village Super Market (61), and Inserra Supermarkets (69).

bfresh stores to add grocery items and prepared foods

bfresh, the urban fresh concept that debuted nearly a year ago, is making substantial changes. According to parent company Ahold-Delhaize (Giant, Food Lion, Hanaford, Stop & Shop, Peapod), the store plans to add hundreds of branded packaged goods - from paper towels to peanut butter - to an assortment previously dominated by fresh, natural and organic brands. Stores will also include more grab-and-go and heat-and-eat food options.

These changes are being made as Ahold continues to learn how best to meet the needs of young urban shoppers.

"Shoppers want to keep things simple," said bfresh Team Coach Patrick Blye in a recent news release. "No matter how you want to shop - like stocking up for the week, buying fresh meals every day, or stopping in for the freshest quick bite in town - bfresh has got you covered."

According to a story in Supermarket News, Philadelphia is a target for bfresh expansion.

Ahold-Delhaize trading as one entity, selling off stores to avoid antitrust concerns

Ahold-Delhaize began trading as a combined entity on Monday, July 25, a few days after the Federal Trade Commission issued a consent order allowing for the completion of the merger, subject to the sale of 81 stores due to antitrust concerns.

According to the company, agreements have been made to sell all 81 stores, plus an additional five stores that were included as part of negotiations with buyers in order to reach a package deal. Buyers include Weis Markets (38 Food Lion stores in Delaware, Maryland and Virginia), Supervalu (22 Food Lion stores in Maryland, Pennsylvania, Virginia and West Virginia), and Publix (10 Martin's stores in Richmond, Virginia), among others.

The FTC said the agreement is subject to public comment until August 22, after which the commission will decide whether to make the proposed consent order final.

Ahold's bfresh signs lease in Philadelphia neighborhood

Ahold confirmed last month that it signed a lease for its bfresh concept to occupy space on the ground floor of the Abbotts Square condos at 2nd and South Streets in Philadelphia's Society Hill neighborhood. Fresh Formats, the concept that evolved into Ahold's bfresh banner, has operated in Philadelphia since 2014, when it opened a 3,700 square foot store.

More recently, bfresh opened a 10,000 square foot store in Boston, MA and an 8,600 square foot store in Fairfield, CT.

Ahold and Delhaize approve company merger

Ahold and Delhaize shareholders approved the merger of the two companies last month, leaving approval from competition authorities in the United States and Europe as the final hurdle. Pending the necessary approvals, the deal is expected to close this summer.

In order to help facilitate the approvals, both chains are offering a combined 83 stores for sale, according to Food Trade News. The stores for sale are assumed to represent an overlap in markets where both stores exist.

According to published lists, there are four stores for sale in Pennsylvania (York, Waynesboro, and two in Chambersburg), all of which carry the Food Lion banner.

Ahold USA, headquartered in Carlisle, PA and Quincy, MA, includes Giant Food, Stop & Shop and Peapod, among others. According to the company's website, Ahold USA operates 770 supermarkets and 210 "pick-up points" in 14 states and the District of Columbia.

Delhaize America includes Food Lion and Hannaford, and operates 1,288 supermarkets in 15 states. The company's website reports that Delhaize America accounts for 66% of the overall company revenue.

WARN Notices filed for 94 A&P stores in New Jersey

WARN notices were filed with the state of New Jersey for 94 A&P, Superfresh, Pathmark and Food Basics stores that are slated for closure. The Worker Adjustment and Retraining Notification Act (WARN) was enacted in 1988 and requires employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs. The notice must be provided to either affected workers or their representatives (e.g., a labor union), and to the appropriate unit of local government.

Here is the list of stores from the New Jersey state website: NJ Department of Labor

A website - apteanotice.com - has been set up by A&P that lists the stores closing and the stores under agreement with Acme, Ahold (Stop & Shop) and Key Foods.

Acme to bid on bankrupt A&P stores; several Pathmarks and Superfresh stores to close immediately

One day after A&P filed for bankruptcy for the second time in five years, Acme announced today that it will bid to acquire 76 A&P, Superfresh and Pathmark stores in Pennsylvania, New Jersey and Delaware.

In a statement by A&P earlier today, the company said it plans to sell 120 stores in total for about $600 million. The food retailer has 296 stores overall, and in its bankruptcy filing it lists assets and liabilities of more than $1 billion each.

Analysts have speculated that Ahold (Giant, Stop & Shop) may bid on certain A&P locations as well.

A report this afternoon by Natalie Kostelni on the Philadelphia Business Journal's website said that A&P has asked a bankruptcy judge "to let it quickly close 25 underperforming stores that have sustained 'significant operating losses.'" A list of stores slated for closure is below.

A story on PhillyVoice.com pointed out that A&P operated more than 15,000 stores early in the 20th century. By 2010, the company was a fraction of its former self and filed for bankruptcy. A couple years later it emerged as a private company after obtaining financing from investors.

Acme is a subsidiary of Albertsons, which acquired Acme in 2013, and the Malvern, PA-based company operates 107 stores.

Stores slated for quick closure:

A&P (2101 Route 35, Holmdel, NJ)
A&P (325 Highway 35 South, Cliffwood, NJ)
Pathmark (1764 Grand Avenue, Baldwin, NY)
Pathmark (115 Belmont Avenue, Belleville, NJ)
Pathmark (450 West Swedesford Road, Berwyn, PA)
Pathmark (2150 Middle Country Road, Centereach, NY)
Pathmark (85 Ackerman Avenue, Clifton, NJ)
Pathmark (895 Paulison Avenue, Clifton, NJ)
Pathmark (50 Racetrack Road & Route 18, East Brunswick, NJ)
Pathmark (561 Route 1, Edison, NJ)
Pathmark (420 McDade Boulevard, Folsom, PA)
Pathmark (651 North Stiles Street, Linden, NJ)
Pathmark (1043 Route 9 North, Old Bridge, NJ)
Pathmark (840 Cottman Avenue, Philadelphia, PA)
Pathmark (85 Franklin Mills Boulevard, Philadelphia, PA)
Pathmark (1256 Indian Head Road, Toms River, NJ)
Pathmark (300 South Best Avenue, Walnutport, PA)
Pathmark (3901 Lancaster Avenue, Wilmington, DE)
Superfresh (1301 Skippack Pike, Center Square, PA)
Superfresh (2105 Philadelphia Pike, Claymont, DE)
Superfresh (863 East Baltimore Pike, Kennett Square, PA)
Superfresh (1851 South Columbus Boulevard, Philadelphia, PA)
Waldbaums (2 Westbury Avenue, Carle Place, NY)
Waldbaums (3620 Long Beach Road, Oceanside, NY)
Waldbaums (1510 Old Country Road, Riverhead, NY)

Ahold and Delhaize to merge, form one of largest supermarket chains in U.S.

Ahold (Giant, Stop & Shop) and Delhaize (Food Lion, Hannaford) announced this morning that the two companies plan to merge and become Ahold Delhaize, creating one of the largest supermarket chains in the U.S. The merger would create a company with 2,000 U.S. stores (6,500 stores worldwide), $44 billion in sales and 375,000 employees.

By comparison, Kroger, the largest full-service grocery retailer in the U.S., has about 2,650 supermarkets.

The deal, which is expected to close next summer, needs to clear regulatory clearances and obtain shareholder approval.

Giant and Food Lion parent companies in merger talks

Ahold and Delhaize confirmed last month that they are in the early stages of merger talks, and analysts believe a deal could be struck this year. Ahold is the parent company for Ahold USA, which includes Giant Food, Martin's, Stop & Shop, and Peapod. The Delhaize Group includes Delhaize America, which consists of Food Lion and Hannaford. Both companies are based in Europe.

Analysts said that both companies combined produced sales of $60.5 billion last year, of which about 61% came from the U.S.

The companies discussed a merger in 2006, but an agreement was not reached.

Ahold to layoff 120 employees

Ahold (Giant) announced yesterday that its restructuring plan would likely result in the elimination of 120 jobs at its support offices in Carlisle, PA and Quincy, MA.  The company said the layoffs would not affect workers at its stores; rather, employees in marketing, human resources and legal would be let go.

Peapod now available in Harrisburg and York PA market

Ahold (Giant) announced last month that Peapod, its online grocery ordering and delivery service, is now available in the Harrisburg and York, PA markets. The area is serviced by a new fulfillment center in Camp Hill, PA.

Peapod allows customers to create personal lists, read nutritional information and sort products by price. Customers can earn Giant Gas Rewards, and groceries can be delivered the day after an order has been placed.

Peapod began service to the Philadelphia community in 2011 and has been expanding throughout the PA and NJ suburbs ever since. Last year Peapod began servicing the Lehigh Valley.

Ahold to grow online sales by 80% in three years

Ahold (Giant, Stop & Shop, Peapod) CEO Dick Boer recently said he would like the company to grow online sales by nearly 80% over the next three years, from approximately $1.7 billion to about $3.1 billion. The company's online strategy would involve growing its market share, expanding its geographic reach and increasing the number of items sold.

To that effect, Peapod, Ahold's U.S. online grocery delivery service, opened a new distribution center in New Jersey, and plans to open a new warehouse in Indianapolis next year. Peapod sales this year are expected to total $590 million, which represents annual growth rates of 11% over the last five years.

Peapod expands to Lehigh Valley

Peapod announced yesterday that it has introduced its home and business delivery service to parts of Lehigh and Northampton Counties in Pennsylvania. Peapod delivery is now available in Allentown, Bethlehem, Easton and several other area communities.

Peapod is a division of Ahold USA (Giant Food), and now offers its service to over 15 million households in the Northeast.

Ahold investing in freshness, training and price reductions

Ahold announced last week that its U.S. pilot program that invests more heavily in the quality and merchandising of its fresh assortment, in employee training and in targeted price reductions, resulted in "encouraging volume uplifts" and will be rolled out more extensively, especially in New England. The announcement came as Ahold's first quarter results revealed eroding margins amid competitive and inflationary pressures.

Ahold, based in the Netherlands, operates the Stop & Shop banner in New England and New York markets, as well as the Giant banner in Pennsylvania and Maryland.

In its earnings call, the company said it expects the program to be implemented in more than half of its stores by the end of the year, and that it will be funded mostly by the expected $250 million "simplicity" program of cost savings in the U.S.

Ahold also owns and operates Peapod, the online grocery ordering and delivery service. Peapod experienced double-digit sales growth in the first quarter.