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).

Sprouts plans 13 more stores for the second half of the year

Sprouts Farmers Markets announced that it plans to open 13 stores in six states during the second half of 2019. Openings are slated for Virginia, Florida, California, Maryland, North Carolina and Arizona.

The company recently opened it's first Pennsylvania store in Philadelphia, and a store is scheduled to open on June 5 in Marlton, which will be Sprouts' first location in New Jersey.

Sprouts said it expects to have 340 stores in 22 states by the end of the year.

Giant opens six stores in four states

Giant Food Stores announced last month that it opened six new stores in four states. Five of the stores were Shop n' Save stores that Giant converted to Martin's Food Markets, and one was a newly constructed Giant to replace a closed store nearby.

Giant acquired the Shop n' Save locations from Supervalu last November and received approval to close the deal from the FTC in February. The stores are in Pennsylvania, Maryland, Virginia, and West Virginia (2). The Giant location is in Warrington, PA.

Giant, a wholly-owned subsidiary of Ahold Delhaize USA, now operates 178 supermarkets in Pennsylvania, Maryland, Virginia and West Virginia.

The company recently opened its first Giant Heirloom Market in Philadelphia, and has plans to open three more of the urban-format grocery stores in Philadelphia this year.

Lidl applies for $9.5 million in PA redevelopment grants

It was revealed last month that Lidl is seeking $9.5 million in Pennsylvania redevelopment grants for six stores, three of which are planned for Philadelphia - South Columbus Blvd. in South Philly, Butler Street in Port Richmond, and Roosevelt Blvd. in Northeast Philly.

The three other stores Lidl is seeking grants for are in Dover Borough (York County), Easton (Northampton County) and Ridley Township (Delaware County). The Ridley location opened last year and was Lidl's first store in the state.

In a story published on Philly.com, Lidl Spokesperson Will Harwood explained that Lidl often works with local government agencies and applies for available investment programs when they expand into new markets, including those that require remediation or rehabilitation.

The $9.5 million would come from Pennsylvania's Redevelopment Assistance Capital Program, which is designed to support redevelopment projects that officials deem capable of having a big economic impact. Six million would be for the three Philadelphia sites.

Walmart to spend $83 million on PA remodels this year

Walmart announced last month that it plans to spend approximately $83 million this year to remodel 15 Pennsylvania stores. Stores set for improvements include locations in Harrisburg, Philadelphia and Quakertown, among others.

The $83 million planned for Pennsylvania stores is part of about $11 billion in total capital expenditures planned by the company in fiscal 2020. Nationwide, Walmart plans to add 1,200 autonomous floor scrubbers, 300 autonomous shelf-scanners, 1,200 FAST unloaders and 900 pickup towers to stores around the country. In addition, the company plans to expand online grocery pickup to 1,000 more stores and add another 800 stores.

Whole Foods and Instacart end partnership, 56 workers let go

Whole Foods and Instacart announced earlier this month that the two companies have "mutually agreed" to end their delivery services partnership, effective May 15. As a result, 56 Philadelphia-area workers have been laid off.

The end of the Whole Foods - Instacart relationship did not come as a surprise to industry analysts, many of whom predicted the change since Amazon purchased Whole Foods in 2017. Whole Foods currently offers Prime Now, a one- and two-hour delivery service in more than 60 U.S. cities, including Philadelphia.

Instacart remains a strong presence in the Philadelphia market, as it has relationships with Reading Terminal Market, CVS, Aldi, Sprouts Farmers Market, Sam's Club, Wegmans, Acme, and Costco. Overall, the company is in 5,500 cities and delivers from nearly 20,000 stores.

"The U.S. is nearly a $1 trillion grocery market, and last year we saw almost every major grocer in North America bring their delivery business online in a significant way," said Instacart CEO Apoorva Mehta in a statement last year. "We believe we're in the early stages of a massive shift in the way people buy groceries, and we expect that one in five Americans will be shopping for their groceries online in the next five years."

Amazon reportedly to launch supermarket business; Philly in the mix

Amazon plans to launch a new retail grocery business, according to a report in The Wall Street Journal. The report stated that Amazon already plans to open a grocery store in Los Angeles - possibly before the end of this year - and has signed leases to open two more in early 2020.

In addition, the company is in discussions to open grocery stores at shopping centers in Philadelphia, San Francisco, Seattle, Chicago and Washington, D.C. The Journal also reports that Amazon is considering potential acquisitions of existing small-to-medium size grocery chains.

"I would speculate this is a traditional grocery play that leverages the best of Amazon technology and shopper insight," said Danny Silverman, CMO at Edge by Ascential. "As Amazon continues to look for ways to capture the last mile through physical retail, they need to test and find propositions that speak to different shopper segments. Whole Foods is a relatively narrow proposition, (Amazon) Go is small footprint and (Amazon) Fresh is delivery-only. A more traditional grocery play would cover critical gaps in their current model."

Giant's Heirloom Market to open more Philly stores

Giant opened its first Heirloom Market in the Graduate Hospital neighborhood of Philadelphia less than two weeks ago, and according to the company, three more city locations will soon follow.

An Heirloom Market store is scheduled to open this summer in University City, followed by stores in Northern Liberties and Queen Village.

Giant's small, urban format features grab-and-go technology for payment, as well as online pickup and delivery options.

The size of the Graduate Hospital store is approximately 9,500 SF, and it is expected that the new locations will be similar.

Lidl to open first store in PA

Lidl announced that its first Pennsylvania store will open next week in Folsom. The company, which operates about 10,000 stores in 29 countries, has 59 operating U.S. stores throughout New Jersey, Delaware, Maryland, Virginia, North Carolina, South Carolina and Georgia.

Lidl announced earlier this month that it plans to purchase 27 Best Supermarkets, mostly in New York.

In Pennsylvania, Lidl also has plans for stores in Philadelphia and Montgomery County.

Walmart adds online delivery service in select Philly markets

According to a company news release, Walmart began online grocery delivery service late last month to Philadelphia and select suburbs, including King of Prussia, Warminster, Kennett Square, West Berlin and Cinnaminson.

Customers in these areas can shop for items on Walmart's website and choose a delivery time, including same-day delivery for an added fee.

Walmart plans to offer its online delivery service in 100 metropolitan areas by the end of the year.

MOM's Organic Market opens 19th store

MOM's Organic Market opened its 19th location earlier this month in Gaithersburg, MD.  The 16,000 square foot store follows recent openings in White Marsh, MD, Cherry Hill, NJ, Baltimore, MD and Philadelphia, PA.

According to Founder and CEO Scott Nash, the company doesn't have openings scheduled for the next 12 to 18 months, but will "put the pedal to the metal again in a couple years."

The company's Gaithersburg location features the retailers first in-store bakery, which Nash says is a test. It also includes an outlet of the chain's Naked Lunch eatery, which offers all-organic, vegetarian prepared items.

Gaitheresburg also includes many of the services that MOM's is known for, including free car-charging stations; a recycling center for corks, eyeglasses, cell phones, household batteries, shoes and plastic bags; a green roof that increases energy efficiency; rain gardens; and pollinator-friendly plants that help filter out pollutants in storm water runoff.

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.

Target expanding "Restock" delivery service

Target announced last month that it plans to expand Target Restock, its next-day delivery service, to eight new markets, including Philadelphia.

Target Restock allows customers to fill a shopping cart-sized box with household items and have it delivered the next day for $4.99. Over 15,000 household items, including baby products and cleaning supplies, are eligible for the service.

According to Target, the most popular "Restock" items so far have been snacks, beverages, cereal, mac and cheese, and paper towels.

Mom's Organic Market opens in Center City Philly

Mom's Organic Market opened in Center City Philadelphia last month. The store - at 34 South 11th Street - marks Mom's first Philly store, and their third store in the PA/NJ/DE market (Bryn Mawr, PA and Cherry Hill, NJ).

The new store features all-organic produce, an all-vegetarian in-store cafe, and even a recycling center for glasses, batteries and wine corks. According to reports, Mom's Organic Market doesn't sell anything with artificial colors, preservatives or sweeteners, or hydrogenated oil.

Mom's currently operates 18 stores in MD, VA, PA, NJ and Washington DC.

Instacart partners with Giant, Wegmans

Instacart announced that it has joined forces with Giant and Wegmans to bring online shopping and delivery to customers in select areas for the two food retailers. Giant's partnership will benefit Philadelphia-area customers, and the service for Wegmans will be available in Northern Virginia and Maryland.

With Instacart, customers in the service areas can order groceries online from Giant or Wegmans for a small fee, and have them delivered within the same day,  often within one hour.

Giant already offers Peapod, a similar service to Instacart, but Peapod only guarantees delivery for the next day.

Instacart has served Philadelphia customers since 2014, when it signed on with Whole Foods and Reading Terminal Market.

For Wegmans, the Instacart deal represents the first online ordering and delivery offering from the company. It is expected that additional markets will be added in the near future.

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.

Albertsons in talks to acquire Sprouts

It was reported last week that Albertsons is considering a deal to acquire Sprouts Farmers Markets, and an industry source told me that he thought the likelihood of such a deal was 50-50.

Sprouts, based in Phoenix, is the largest farmers' market-style food retailer in the country. It operates more than 250 stores in 15 states, not including Pennsylvania, where a Philadelphia store is planned. There are no stores currently in New Jersey either, and it has been rumored that the company is looking for a site in South Jersey.

According to reports, Sprouts has plans to open 32 stores this year, following 36 new stores last year and 27 in 2015.

Jefferies Anlyst Chris Mandeville said last week that "the logic of a deal makes sense in our view," but added that it would be very expensive.

Albertsons, which is owned by Cerberus Capital, acquired Safeway and Supervalu in recent years. Reports said that the company was in talks to acquire Price Chopper late last year, but the deal never happened.

Soda Tax putting a dent in Philly grocery sales

According to recent published reports, Philadelphia's new soda tax is putting a significant dent in overall grocery sales and forcing retailers to reduce labor as consumers are shifting their shopping to locations outside the city.

The tax is levied on distributors at the rate of 1.5 cents per ounce and covers any beverage containing sugar or artificial sweeteners (except 100% fruit juices and cow's milk).

Jeff Brown, CEO of Brown Super Stores, which operates six supermarkets in Philadelphia and six in the suburbs, said total sales in his city stores have fallen 15 percent since the tax took effect, with beverage sales falling more than 50 percent.

If the sales declines continue, Brown worries that the tax could cause a reversal of the recent progress made in eliminating food deserts, since many customers are leaving their low-income neighborhoods to shop.

In addition, Brown projects that he may have 300 fewer employees by the end of the first quarter than he had the same time a year ago.

According to a spokesperson for the Philadelphia Mayor's office, an initial drop in sales was expected, but normal shopping patterns are anticipated once people get used to the new pricing. $92 million in revenue from the tax is projected, which is to be used to fund pre-Kindergarten education programs, community schools, and city parks and recreation programs.

New soda taxes have also been implemented in Illinois, Colorado and California, and a proposal in Seattle, WA would tax sugared beverages at 2 cents per ounce, if passed.

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.

Acme to be repaced by residences in Society Hill, Philadelphia

The Acme store in Philadelphia's Society Hill will close once its lease expires in two years and be replaced by a residential building, according to a report in today's Philadelphia Inquirer. The report says that Alterra Property Group received a conditional zoning permit last week that allows for the demolition of the current building as well as the construction of a five-story structure with 43 underground parking spaces.

Neighborhood residents and the Society Hill Civic Association oppose the project, which needs to be reviewed by the Philadelphia Historical Commission since it's located within a historical district.

Acme acquired the store after A&P's bankruptcy in 2015. It had been operating for several years as a Super Fresh.