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."
Showing posts with label Sam's Club. Show all posts
Showing posts with label Sam's Club. Show all posts
Sunday, March 31, 2019
Tuesday, January 29, 2019
Trader Joe's tops annual Retailer Preference Index
According to Dunnhumby's second annual Retailer Preference Index (RPI), Trader Joe's was the top grocery retailer, followed by Costco, Amazon, H-E-B and Wegmans. In a survey of 7,000 U.S. households, the RPI examined 56 grocery retailers to determine which companies have the strongest combination of consumer emotional sentiment and financial performance.
Market Basket finished 6th, followed by Sam's Club, Sprouts Farmers Markets, WinCo Foods, Walmart, Aldi, Peapod and The Fresh Market.
Dunnhumby said the rankings focused on seven "pillars": price; quality; digital; operations; discounts, rewards and information; convenience; and speed.
The company concluded that the top retailers on the index are mostly nontraditional grocers that have developed a highly targeted offering to bolster the value perception for their customer base.
"More traditional, regional grocery banners with a long history are hurting because of it, having relatively poorer-performing financials and/or emotional bonds," Dunnhumby said. "The reason: These traditional banners have inferior price perception and/or quality."
Trader Joe's also finished atop the rankings last year.
Market Basket finished 6th, followed by Sam's Club, Sprouts Farmers Markets, WinCo Foods, Walmart, Aldi, Peapod and The Fresh Market.
Dunnhumby said the rankings focused on seven "pillars": price; quality; digital; operations; discounts, rewards and information; convenience; and speed.
The company concluded that the top retailers on the index are mostly nontraditional grocers that have developed a highly targeted offering to bolster the value perception for their customer base.
"More traditional, regional grocery banners with a long history are hurting because of it, having relatively poorer-performing financials and/or emotional bonds," Dunnhumby said. "The reason: These traditional banners have inferior price perception and/or quality."
Trader Joe's also finished atop the rankings last year.
Wednesday, July 25, 2018
Sam's Club to open 32,000 SF store
Sam's Club announced last month that it plans to open a smaller-format store centered on convenience and a digital experience, with the product selection focusing on consumables. The 32,000 square foot store is scheduled to open in Dallas this fall.
Typical Sam's Club warehouse stores are about 135,000 square feet, with many even larger.
According to CEO Jamie Iannone, the new store will still be a membership club like all Sam's Club locations, and will focus on making shopping easier. He cites plans for faster membership signups, easier returns, digital signage throughout the store, and Scan & Go checkout.
Iannone also said the product offering will consist mostly of grocery and fresh food items such as grab-and-go meals, and popular consumable items. Same-day Club Pickup will also be available, as will certain delivery options.
Earlier this year Sam's Club announced the closure of 63 club locations, including their Exton, PA store. Up to 12 of these closed stores are slated to be converted to fulfillment centers.
Typical Sam's Club warehouse stores are about 135,000 square feet, with many even larger.
According to CEO Jamie Iannone, the new store will still be a membership club like all Sam's Club locations, and will focus on making shopping easier. He cites plans for faster membership signups, easier returns, digital signage throughout the store, and Scan & Go checkout.
Iannone also said the product offering will consist mostly of grocery and fresh food items such as grab-and-go meals, and popular consumable items. Same-day Club Pickup will also be available, as will certain delivery options.
Earlier this year Sam's Club announced the closure of 63 club locations, including their Exton, PA store. Up to 12 of these closed stores are slated to be converted to fulfillment centers.
Monday, May 14, 2018
Instacart raises money to fuel expansion, add employees
Instacart announced last month that it received $350 million in financing from Coatue Management, a technology-focused hedge fund, and noted that it has raised more than $1 billion since 2012, with most of it still in the bank.
According to the company, the additional funding will be used to double its employee count, fuel expansion, and invest in new products and services.
Instacart is now used by North America's eight largest grocery retailers - Kroger, Albertsons, Publix, Costco, Ahold Delhaize, H-E-B, Loblaw and Sam's Clubs, not to mention regional grocers like Wegmans.
According to the company, the additional funding will be used to double its employee count, fuel expansion, and invest in new products and services.
Instacart is now used by North America's eight largest grocery retailers - Kroger, Albertsons, Publix, Costco, Ahold Delhaize, H-E-B, Loblaw and Sam's Clubs, not to mention regional grocers like Wegmans.
Sunday, April 1, 2018
BJ's expands Instacart partnership
BJ's Wholesale Club, which has been marketing heavily to Sam's Club customers since the Walmart-owned company closed several stores, has expanded its same-day delivery agreement with Instacart and will soon offer the service from all 215 stores.
Instacart also recently expanded its partnership with Costco, Kroger and Aldi. According to Kroger, two-thirds of its customers now have access to delivery and/or curbside pickup.
Instacart also recently expanded its partnership with Costco, Kroger and Aldi. According to Kroger, two-thirds of its customers now have access to delivery and/or curbside pickup.
Monday, January 22, 2018
Walmart to increase hourly wages, expand parental benefits, close 63 Sam's Club stores
Walmart said earlier this month that it plans to increase its starting wage for all hourly workers in the U.S. to $11 per hour , pay a one-time bonus of up to $1,000 to select employees, and expand benefits for parental leave.
The increased starting rate is scheduled to become effective in February for all Walmart, Sam's Club, supply chain, e-commerce and home office hourly workers. The bonuses, which will range from $200 to $1,000, are for workers who don't benefit from the hourly salary increase.
Walmart President and CEO Doug McMillon said in a blog post that the company is in the "early stages of assessing the opportunities tax reform creates for us to invest in our consumers and associates to further strengthen our business, all of which should benefit our shareholders."
Karen Short, an analyst at Barclays Capital, estimated that tax reform could generate about $4.3 billion in cash flow for Walmart. With the salary hike and increased benefits costing about $700 million plus the incremental cost for expanded parental leave and adoption benefits, Short thinks that about $3 billion per year will be available for the company to invest in lower prices, technology and shareholder returns.
In related news, Walmart said the company plans to close 63 Sam's Club warehouse stores in the next several weeks, with about 10 of the locations to be converted to e-commerce fulfillment centers.
The increased starting rate is scheduled to become effective in February for all Walmart, Sam's Club, supply chain, e-commerce and home office hourly workers. The bonuses, which will range from $200 to $1,000, are for workers who don't benefit from the hourly salary increase.
Walmart President and CEO Doug McMillon said in a blog post that the company is in the "early stages of assessing the opportunities tax reform creates for us to invest in our consumers and associates to further strengthen our business, all of which should benefit our shareholders."
Karen Short, an analyst at Barclays Capital, estimated that tax reform could generate about $4.3 billion in cash flow for Walmart. With the salary hike and increased benefits costing about $700 million plus the incremental cost for expanded parental leave and adoption benefits, Short thinks that about $3 billion per year will be available for the company to invest in lower prices, technology and shareholder returns.
In related news, Walmart said the company plans to close 63 Sam's Club warehouse stores in the next several weeks, with about 10 of the locations to be converted to e-commerce fulfillment centers.
Monday, October 9, 2017
Walmart adding same-day and in-home delivery to select markets
Walmart announced last week that it acquired Parcel, a technology-enhanced delivery company with experience in same-day perishable delivery. The company plans to use Parcel to help fulfill orders through Jet and Walmart in New York City.
Parcel uses routing algorithms, a fleet of vehicles and trained employees to sort, load and deliver packages to customers.
A couple weeks earlier Walmart announced it was testing home delivery, including some deliveries where the driver is authorized to unload fresh groceries into the customer's refrigerator, even when the customer isn't home. Fulfillment is provided by Deliv, which is also partnering with Sam's Club stores in Miami.
In this home delivery scenario, drivers are provided with a one-time code to unlock the door, and customers can watch the delivery in real time via their home security cameras. The only eligible customers so far are those in the Silicon Valley who are equipped with August Lock's internet-enabled "smart locks."
Wednesday, March 15, 2017
BJ's may be looking to sell or go public
A report in the Wall Street Journal last month stated that the private equity firms that own BJ's Wholesale Club could either be trying to sell the company or planning for an IPO.
Leonard Green and Partners and CVC Capital Partners acquired BJ's in 2011 for about $2.8 billion. At the time, it was reported that Walmart made an offer for BJ's but was rejected.
An analyst at Kantar Retail noted that although more and more BJ's shoppers have been cross-shopping on Amazon and limited-assortment discounters are eroding the uniqueness of the warehouse club's value proposition, BJ's has shown signs of improvement since CEO Chris Baldwin took over last February.
Baldwin has focused on five key pillars: smart saving families; improving value perception; driving member engagement and retention; revitalizing the general merchandise assortment; and increasing its response speed by improving processes.
BJ's currently operates 213 clubs. Although analysts think Costco and Sam's Club could be curious about acquiring BJ's, they believe it's unlikely either company would make such a large investment in physical stores.
Leonard Green and Partners and CVC Capital Partners acquired BJ's in 2011 for about $2.8 billion. At the time, it was reported that Walmart made an offer for BJ's but was rejected.
An analyst at Kantar Retail noted that although more and more BJ's shoppers have been cross-shopping on Amazon and limited-assortment discounters are eroding the uniqueness of the warehouse club's value proposition, BJ's has shown signs of improvement since CEO Chris Baldwin took over last February.
Baldwin has focused on five key pillars: smart saving families; improving value perception; driving member engagement and retention; revitalizing the general merchandise assortment; and increasing its response speed by improving processes.
BJ's currently operates 213 clubs. Although analysts think Costco and Sam's Club could be curious about acquiring BJ's, they believe it's unlikely either company would make such a large investment in physical stores.
Wednesday, November 16, 2016
Sam's Club testing high-end product offerings
Sam's Club CEO Roz Brewer said last month that an ongoing test to see how customers would react to high-end and luxury product offerings has been successful so far. According to Brewer, it provides "a look into the future of where we could go with our business."
Earlier this year a Sam's Club store in Bentonville, AK featured five-figure jewelry items and a massive deli counter with prime U.S. meats and upscale meal solutions, among other high-end offerings. According to Brewer, sales at the site have increased by 4% despite deflation pressures, driven by higher shopping frequency and smaller average baskets. About half of the new sales growth has come from the deli and prepared foods area.
Next year the Walmart-owned membership warehouse chain plans to spend about $700 million in capital expenditures, in part on "enhanced remodels" that will feature some of the premium items offered in the Bentonville test store.
Earlier this year a Sam's Club store in Bentonville, AK featured five-figure jewelry items and a massive deli counter with prime U.S. meats and upscale meal solutions, among other high-end offerings. According to Brewer, sales at the site have increased by 4% despite deflation pressures, driven by higher shopping frequency and smaller average baskets. About half of the new sales growth has come from the deli and prepared foods area.
Next year the Walmart-owned membership warehouse chain plans to spend about $700 million in capital expenditures, in part on "enhanced remodels" that will feature some of the premium items offered in the Bentonville test store.
Wednesday, January 20, 2016
Walmart to close 269 stores, including all Express stores
Walmart announced last week that it plans to close 269 stores, including all of its 102 Walmart Express small-format stores. Of the store closings, 154 will take place in the U.S.
According to Walmart, the impacted stores represent less than 1 percent of the 11,600 stores worldwide and will impact 16,000 employees (10,000 in the U.S.).
The small-format stores, typically in the 12,000 - 16,000 square foot range, began to roll out in 2011. Walmart envisioned thousands of Express stores and hoped they would compete well with discounters like Dollar General.
Instead, Walmart will now focus on strengthening Supercenters, optimizing Neighborhood Markets, growing its e-commerce business and expanding pick-up services.
The U.S. closures include 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam's Clubs. There are no closures planned for the Greater Philadelphia Region.
Walmart said that more than 95% of the closing stores in the U.S. are within 10 miles on average of another Walmart.
The company plans to open 50-60 Supercenters, 85-95 Neighborhood Markets, and 7-10 Sam's Club locations in fiscal 2017.
According to Walmart, the impacted stores represent less than 1 percent of the 11,600 stores worldwide and will impact 16,000 employees (10,000 in the U.S.).
The small-format stores, typically in the 12,000 - 16,000 square foot range, began to roll out in 2011. Walmart envisioned thousands of Express stores and hoped they would compete well with discounters like Dollar General.
Instead, Walmart will now focus on strengthening Supercenters, optimizing Neighborhood Markets, growing its e-commerce business and expanding pick-up services.
The U.S. closures include 23 Neighborhood Markets, 12 Supercenters, seven stores in Puerto Rico, six discount centers, and four Sam's Clubs. There are no closures planned for the Greater Philadelphia Region.
Walmart said that more than 95% of the closing stores in the U.S. are within 10 miles on average of another Walmart.
The company plans to open 50-60 Supercenters, 85-95 Neighborhood Markets, and 7-10 Sam's Club locations in fiscal 2017.
Sunday, November 2, 2014
Costco to keep expanding as rival Sam's Club struggles
Costco announced last month that it plans to boost capital spending in fiscal 2015 by 25% - 35% in order to open 31 new warehouses and relocate four others, and increase spending on remodeling activities. Costco CFO Richard Galanti said capital spending for 2015 will total about $2.6 billion, compared with $2 billion in fiscal 2014.
Of the 31 new warehouses (compared to 30 opened in 2014), 19 are planned for the U.S.
For fiscal 2014, Costco's net income increased 0.9% to $2.1 billion, with net sales up 7.1% to $110.2 billion.
While Costco's results continue to be strong, rival Sam's Club, a Walmart subsidiary, is struggling.
"The divergence from Costco is striking," according to an analyst at the Cowen Group who was discussing Sam's Club for a Huffington Post story earlier this year. "They're basically in the same business, but apparently they're not in the same business."
In the story referenced above, analysts said the reasons for Costco's success and Sam's Club's struggles may include the following:
Of the 31 new warehouses (compared to 30 opened in 2014), 19 are planned for the U.S.
For fiscal 2014, Costco's net income increased 0.9% to $2.1 billion, with net sales up 7.1% to $110.2 billion.
While Costco's results continue to be strong, rival Sam's Club, a Walmart subsidiary, is struggling.
"The divergence from Costco is striking," according to an analyst at the Cowen Group who was discussing Sam's Club for a Huffington Post story earlier this year. "They're basically in the same business, but apparently they're not in the same business."
In the story referenced above, analysts said the reasons for Costco's success and Sam's Club's struggles may include the following:
- Even though Sam's Club stores are more upscale than Walmart, Sam's may be relying on customers who need food assistance, and with the decline in government assistance, poor consumers are cutting back on spending. In addition, Costco explicitly targets customers with more money, so its shoppers may be more resilient in times of economic uncertainty and less price sensitive.
- Costco customers are incredibly loyal, and their Kirkland brand may have a lot to do with that. According to an analyst quoted in the Huffington Post story, Costco uses the Kirkland brand to sell quality products at an affordable price, creating brand - and Costco - trust. And as for membership, which accounts for about 75 percent of the company's operating profit, the renewal rate is nearly 90 percent. The free samples and $1.50 hotdogs don't hurt, either.
- Costco probably has better leverage with suppliers than Sam's, because the quality and popularity of the Kirkland brand allows Costco to sell its own version of a product if suppliers don't meet its demands.
Monday, October 21, 2013
Walmart to accelerate small format growth
Last week Walmart reported that it plans to accelerate the growth of its small-format stores - mostly Neighborhood Markets - and projected that they will open between 120 and 150 of them in fiscal 2015, compared to 120 in the current fiscal year. The company also said they plan to open 115 supercenters in the next fiscal year.
According to President and CEO Bill Simon, "We will accelerate growth of our Neighborhood Markets because of their strong returns, consistent comp-sales performance and double-digit net sales increases; and we will continue to build and leverage the supercenter format, which remains our primary format for growth."
In addition, Walmart expects to open between 17 and 22 new Sam's Clubs stores in fiscal 2015 at a cost of $1 billion.
According to President and CEO Bill Simon, "We will accelerate growth of our Neighborhood Markets because of their strong returns, consistent comp-sales performance and double-digit net sales increases; and we will continue to build and leverage the supercenter format, which remains our primary format for growth."
In addition, Walmart expects to open between 17 and 22 new Sam's Clubs stores in fiscal 2015 at a cost of $1 billion.
Monday, June 24, 2013
BJ's opens 200th store, still way behind Costco and Sam's Club
BJ's Wholesale Club opened its 200th store last week in Fayetteville, NC, which prompted me to see how many stores Costco and Sam's Club have. Here's a quick comparison:
- BJ's - 200 stores in 15 states
- Costco - 627 total stores; 449 in the U.S. and Puerto Rico, 85 in Canada and 93 in other countries
- Sam's Club - about 721 +/- total stores; 621 in the U.S. and Canada, and about 100 in other countries.
Friday, May 17, 2013
Walmart grocery comps rise as overall comps fall
Walmart announced yesterday that overall U.S. comparable-store sales, excluding fuel, for its fiscal first quarter were down by 1.2%. The company blames the decrease on smaller and slower-arriving tax returns, and unseasonable weather.
Grocery sales were better than overall sales, as grocery comps were in the "low single-digits." Similar comps were reported for the Neighborhood Market grocery stores, and Sam's Club, which is gearing up for a membership fee increase, saw comps improve by 0.1% in the quarter.
Overall Walmart sales in the U.S. increased by 0.3% to $66.6 billion, and companywide sales increased 1% to $113.4 billion.
Exact figures on the number of times customers heard the phrase "Welcome to Walmart" when entering the store were not released.
Grocery sales were better than overall sales, as grocery comps were in the "low single-digits." Similar comps were reported for the Neighborhood Market grocery stores, and Sam's Club, which is gearing up for a membership fee increase, saw comps improve by 0.1% in the quarter.
Overall Walmart sales in the U.S. increased by 0.3% to $66.6 billion, and companywide sales increased 1% to $113.4 billion.
Exact figures on the number of times customers heard the phrase "Welcome to Walmart" when entering the store were not released.
Tuesday, March 5, 2013
Grocers take top 3 spots in "experience" ratings
The third annual Temkin Experience Ratings, which evaluate a company's overall customer experience, came out last week, and grocery chains fared well. Based on a study of 10,000 consumers, Publix, Trader Joe's and Aldi earned the highest scores. Here are the top 12 performers:
1 - Publix
2 - Trader Joe's
3 - Aldi
4 - Chick-fil-A
5 - Amazon.com
6 - Sam's Club
7 - H.E.B.
8 - Dunkin Donuts
9 - Save-A-Lot
10 - Sonic Drive-in
11 - Little Caesar's
12 - Ace Hardware
The five lowest scores went to US Airways, Time Warner Cable, Days Inn, Empire BCBS and 21st Century.
1 - Publix
2 - Trader Joe's
3 - Aldi
4 - Chick-fil-A
5 - Amazon.com
6 - Sam's Club
7 - H.E.B.
8 - Dunkin Donuts
9 - Save-A-Lot
10 - Sonic Drive-in
11 - Little Caesar's
12 - Ace Hardware
The five lowest scores went to US Airways, Time Warner Cable, Days Inn, Empire BCBS and 21st Century.
Friday, January 27, 2012
ShopRite, with $1.7 billion in sales, leads Philly market in 2011
Last Friday the Philadelphia Business Journal published the list of top companies in Philadelphia's eight-county area selling groceries, health- and beauty-care products, general merchandise and tobacco products, as compiled by the Food Trade News. Here's the list:
1. ShopRite - 43 stores with sales of $1.7 billion
2. Acme - 69; $1.57 billion
3. Giant - 47; $1.53 billion
4. Wawa - 280; $1.44 billion
5. Rite Aid - 252; $884.1 million
6. A&P (Super Fresh, Pathmark) - 40; $850.8 million
7. Wal-Mart - 37; $831.1
8. CVS - 187; $817 million
9. Genuardi's - 28; $733.7 million
10. Target - 29; $534.3 million
11. Walgreens - 90; $480.9 million
12. BJ's Wholesale Club - 12; $413.9 million
13. Wegmans - 6; $371 million
14. Save-A-Lot - 34; $258 million
15. Sam's Club - 7; $238.2 million
16. Thriftway / Shop n Bag - 21; $230.5 million
17. Redner's Warehouse Markets - 10; $222.7 million
18. KMart - 29; $210.9 million
19. 7-Eleven - 179; $201.3 million
20. Whole Foods - 8; $191.6 million
It's interesting to note that the three major drug stores had 529 stores in 2011. The 10 supermarkets totaled 276 stores (from Wegmans with 6 to Acme with 69).
Here's a link to the original compiler: Food Trade News
1. ShopRite - 43 stores with sales of $1.7 billion
2. Acme - 69; $1.57 billion
3. Giant - 47; $1.53 billion
4. Wawa - 280; $1.44 billion
5. Rite Aid - 252; $884.1 million
6. A&P (Super Fresh, Pathmark) - 40; $850.8 million
7. Wal-Mart - 37; $831.1
8. CVS - 187; $817 million
9. Genuardi's - 28; $733.7 million
10. Target - 29; $534.3 million
11. Walgreens - 90; $480.9 million
12. BJ's Wholesale Club - 12; $413.9 million
13. Wegmans - 6; $371 million
14. Save-A-Lot - 34; $258 million
15. Sam's Club - 7; $238.2 million
16. Thriftway / Shop n Bag - 21; $230.5 million
17. Redner's Warehouse Markets - 10; $222.7 million
18. KMart - 29; $210.9 million
19. 7-Eleven - 179; $201.3 million
20. Whole Foods - 8; $191.6 million
It's interesting to note that the three major drug stores had 529 stores in 2011. The 10 supermarkets totaled 276 stores (from Wegmans with 6 to Acme with 69).
Here's a link to the original compiler: Food Trade News
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