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).

Wegmans plans openings for two North Jersey stores

Wegmans announced that new stores in Hanover, NJ and Montvale, NJ will open this year on July 23 and September 24, respectively. Each store will feature a Burger Bar, which is Wegmans' in-store restaurant counter. They will also have wine, beer and spirits shops operated by a third-party.

The stores are the company's closest locations to New York City so far. A Rochester, NY newspaper reported that stores may be coming in 2018 to Westchester County and Brooklyn.

Whole Foods overcharging is "worst case of mislabeling" inspectors have seen

Not surprisingly, the New York Daily News story about alleged overcharging by Whole Foods started off with "Rip-off on aisle four."

The newspaper reported that New York City officials launched a probe of Whole Foods after investigators claimed the eight city stores routinely overcharged customers for groceries during dozens of inspections dating back to 2010.

According to the story, inspectors from the Department of Consumer Affairs weighed 80 different types of items and found that every label was inaccurate, with many resulting in customers being overcharged.

Although Whole Foods wasn't the only offender, it was the most egregious one, according to Consumer Affairs Commissioner Julie Menin.

Initially, Whole Foods said they disagree with the city's findings, but in a video released this past week by Whole Foods Co-CEOs John Mackey and Walter Robb, the two execs admitted to mistakes, saying that some customers had been accidentally overcharged for sliced fruit, fresh squeezed juices and sandwiches by workers who made errors. They claimed that mistakes were made both in the customer's favor and in the store's favor.

Commissioner Menin said her inpectors described the mistakes as "the worst case of mislabeling they have seen in their careers," and said they found only a few instances where customers actually benefited from underpriced food.

Wegmans to anchor Brooklyn Navy Yard development

Wegmans has been selected as an anchor tenant for a $140 million development at the Brooklyn Navy Yard. The store will be Wegmans' first in New York City.

According to reports, demolition of existing buildings will begin later this year, and the 74,000 square foot store is expected to open in 2018.

Five years ago the Navy Yard selected a Wakefern Food Corp. member to build a 55,000 square foot ShopRite at the same site, but the deal died when the developer was indicted on bribery charges (which were eventually dismissed).

In addition to the supermarket, the project will include 78,000 square feet of retail space, 126,000 square feet of light industrial space, and 7,000 square feet of community space. The project will be developed by Steiner NYC, which operates film studios at the same site.

Fairway goes public, planning for steady expansion

Whole Foods rival Fairway went public last month and the 12-store grocery chain aims to open 300 stores across the country. The stores, located in New York City and the surrounding areas and known for its specialty foods, began as a family business in the 1930s as a fruit and vegetable stand. The founder's grandson, Howard Glickberg, is vice chairman of development and still owns a small stake in the company. Sterling Investment Partners is the majority owner, having acquired an 80 percent stake in 2007.

The company's initial public offering raised $177.5 million, valuing the entire company at $536.1 million, according to reports.

Expansion is set to take place at a rate of three to four stores per year. Whole Foods has been aggressive in the same market and now has seven stores in New York City alone.

Fairway lost $11.9 million in the fiscal year ending in April 2012 on sales that increased 14 percent to $554.9 million, and at that time the company had debt in excess of $200 million.

FreshDirect expands to more Philly suburbs; adds 90 new zip codes

Internet grocer FreshDirect announced yesterday that it has expanded service to more than 90 new zip codes that range from the Philadelphia area all the way to Long Island in New York. FreshDirect entered the Philadelphia market in October 2012 in limited areas, and expanded just three months ago to many surrounding suburban counties. 

Most of the new zip codes are in New Jersey, covering eight counties in Northern New Jersey as well as Camden and Gloucester counties in Southern New Jersey.

FreshDirect CEO Jason Ackerman said that suburban growth is outpacing urban growth, prompting the expedited growth outside of New York City and Philadelphia.

NJ's first Walmart supermarket coming to Hawthorne

NorthJersey.com reported last week that the first Walmart Neighborhood Market in New Jersey will be in Hawthorne. According to the story, Walmart signed a lease for 42,000 square feet at 204 Wagaraw Road, and the property will include additional retail.

The story describes Hawthorne as a middle class suburban town about 16 miles from New York City.

Walmart's Neighborhood Market format is a traditional supermarket, and reportedly the Hawthorne location will include a drive-through pharmacy. There are approximately 200 Neighborhood Markets in the United States.

Not surprisingly, a group of residents formed a group that is trying to stop the store from coming to Hawthorne.