Amazon Go store opens in NYC, accepts cash

The opening of the Amazon Go store last week in New York City represents the chain's 12th location, and the first to accept cash. The 1,300 square foot store is located in downtown Manhattan, across from One World Trade Center and on the second level of an upscale mall that includes shops, food vendors and restaurants.

Like other Amazon Go outlets, the store has no regular cashier. However, unlike the other 11 stores, customers may pay with cash upon request. Amazon Go is known for its "Just Walk Out" technology, where shoppers use the Amazon Go app to get into the store and automatically pay for the items they remove from the shelves.

Reports say that the cash option was added as Amazon has received criticism for discriminating against underbanked consumers who prefer to pay in cash. A number of cities, including Philadelphia, have enacted bans against cashless stores.

The new Manhattan store carries an assortment of grocery staples, plus ready-to-eat meals and snack options made by Amazon employees as well as local kitchens and bakeries. The store also sells Amazon Meal Kits, which the company said has all the ingredients necessary for making a meal for two in about 30 minutes. 

Amazon Go's other stores are in Seattle (four), Chicago (four) and San Francisco (three).

Trader Joe's to end grocery delivery in Manhattan

Trader Joe's announced that effective March 1, the company will cease grocery delivery services in Manhattan stores. According to Business Insider, an email statement from Trader Joe's cited cost and the availability of other delivery services in the area.

Unlike most leading grocers, Trader Joe's typically does not provide online grocery shopping, nor does it offer delivery services. However, third-party services like Postmates and Envoy deliver from Trader Joe's in some states.

Despite the increasing rollout of online grocery shopping, delivery and pickup services, recent studies show that most consumers prefer to shop for groceries in stores. Still, U.S. consumer spending online for groceries is expected to rise about 15% next year. If so, the overall online share of grocery sales will reach 6.3%.

A&P looking for buyers

Last week A&P, which operates under the Super Fresh and Pathmark banners in the Greater Philadelphia market, acknowledged that it is "seeking alternatives for its business," adding that a sale of the company was only one of its options.

In other words, A&P is for sale.

According to a New York Post story, A&P is looking to sell 137 of its 301 stores, including all 10 of its Food Emporium stores in Manhattan, high-volume Pathmark stores in Queens and Staten Island, and low-volume A&P stores.

A&P close to a sale of its Food Emporium chain

According to a story in Crain's New York Business, the sale of A&P's 16-store Food Emporium chain in Manhattan is imminent. As of late last month, the investment banking firm Duff & Phelps was soliciting final bids from buyers, including Kings Food Markets, a 24-store chain that operates in New Jersey, Long Island and Connecticut, that wants several of the Food Emporium stores.

Gristedes, which operates approximately 30 stores in Manhattan and surrounding areas, submitted a bid for the entire chain, but it appears A&P is leaning towards a sale to multiple buyers.

The Crain's story also reports that the union representing some of Food Emporium's 1,100 employees is suing A&P to stop a sale to buyers who would not honor its current labor contracts, although such a buyer would only have to honor the contracts if A&P made it a condition of the sale.

A&P, officially known as the Great Atlantic & Pacific Tea Company, also owns Pathmark, Super Fresh, Waldbaum's and Food Basics grocery stores.

A&P to sell Food Emporium's Manhattan stores

The Great Atlantic and Pacific Tea Company (A&P), the parent company of Pathmark and Super Fresh, announced earlier this week it is selling Food Emporium's 16 Manhattan locations. The stores, its leases and the brand name are for sale.

Earlier this year A&P emerged from bankruptcy as a private company, and also with 75 fewer stores than it had pre-bankruptcy. In addition to Pathmark and Super Fresh, the company owns Waldbaum's and Food Basics. Analysts believe the proceeds from the sale of Food Emporium will be invested into the other A&P brands.

Whole Foods opens first membership-only wellness club

Back in February we learned that Whole Foods was planning to open Wellness Clubs in select stores. Last week, USA Today reported that the first club opened in Dedham, MA, and additional sites are coming soon at Whole Foods locations in Princeton, Manhattan (Tribeca), Chicago and Oakland.

The membership-only clubs will cost $45 per month plus a one-time fee of $199. Members will have access to lifestyle evaluations (I assume shopping at Whole Foods will garner initial high marks) and access to nutrition, cooking and health classes. They will also get discounts on 1,000 "better-for-you" foods sold in the stores.

Whole Foods Founder and Co-CEO John Mackey says 10 additional Wellness Clubs could be rolled out in 2012 if the first five are successful, and the program could go national in 2013.

There is no doubt other retailers will pay close attention. If Whole Foods finds the program successful - meaning that thousands of customers forked over $739 for the service in year one - similar programs are bound to pop up at other retailers who are health conscious, or at least want to be.