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.
Showing posts with label The Fresh Market. Show all posts
Showing posts with label The Fresh Market. Show all posts
Tuesday, January 29, 2019
Wednesday, July 11, 2018
The Fresh Market to close 15 stores
The Fresh Market announced yesterday that it plans to close 15 stores in nine states. None of the closings are in Pennsylvania, New Jersey or Delaware.
The closings are expected to take place in the next two to four weeks. Four of the stores are in Illinois, two in Georgia, two in Virginia, and one each in Indiana, Kentucky, North Carolina, New Hampshire and Tennessee.
There are currently five Fresh Market stores in Pennsylvania, two in New Jersey and one in Delaware.
"Over the last eight months, our company has been executing a turnaround plan, and we've seen great progress," said CEO Larry Appel. "However, for a variety of reasons unique to each retail location, that progress is not evenly distributed and, as a result, we have decided to close these long-term under-performing stores."
The Fresh Market, which currently operates 176 stores in 24 states, has had several stores closings in recent years as competition - both online and brick-and-mortar - has adversely impacted sales.
The closings are expected to take place in the next two to four weeks. Four of the stores are in Illinois, two in Georgia, two in Virginia, and one each in Indiana, Kentucky, North Carolina, New Hampshire and Tennessee.
There are currently five Fresh Market stores in Pennsylvania, two in New Jersey and one in Delaware.
"Over the last eight months, our company has been executing a turnaround plan, and we've seen great progress," said CEO Larry Appel. "However, for a variety of reasons unique to each retail location, that progress is not evenly distributed and, as a result, we have decided to close these long-term under-performing stores."
The Fresh Market, which currently operates 176 stores in 24 states, has had several stores closings in recent years as competition - both online and brick-and-mortar - has adversely impacted sales.
Saturday, November 4, 2017
Moody's downgrades The Fresh Market
A Supermarket News story last month reported that The Fresh Market's effort to increase store traffic through investments in price have not been successful, and same-store sales are expected to decline for the rest of the year. Supermarket News cited Moody's Investor Service as the information source.
Moody's recently categorized The Fresh Market's corporate family credit rating as a very high credit risk and gave it a negative outlook.
According to a Moody's analyst, increasing pricing pressure and new store openings in The Fresh Market's operating areas will "make it very challenging to meaningfully improve profitability in the next 12 months." The analyst quoted cited potential pressure from Amazon-Whole Foods.
In addition to the credit rating downgrade, Moody's also downgraded the rating on The Fresh Market's $100 million revolving credit facility, as well as the rating of its $800 million senior secured notes.
The company was acquired last year by Apollo Global Management for about $1.4 billion. The Fresh Market currently has 176 stores in 24 states.
Sunday, May 7, 2017
Fresh Market trying to become a more mainstream grocer
The Fresh Market announced in late April that it plans to close five stores. At the same time, the company is continuing its effort to become a more mainstream grocer with the rollout of new stores in South Carolina and Florida that feature an updated look and more everyday grocery items.
The stores slated for closure are in Northern New Jersey, New York, Virginia, Florida and Illinois.
The Fresh Market debuted its new format last year in three North Carolina stores, and one earlier this year in Florida. These stores include an increased selection of local products and traditional grocery offerings like pet and baby products. The company said the stores also include an emphasis on "sharp pricing."
Private investment firm Apollo Global Management acquired The Fresh Market last year for $1.36 billion.
The stores slated for closure are in Northern New Jersey, New York, Virginia, Florida and Illinois.
The Fresh Market debuted its new format last year in three North Carolina stores, and one earlier this year in Florida. These stores include an increased selection of local products and traditional grocery offerings like pet and baby products. The company said the stores also include an emphasis on "sharp pricing."
Private investment firm Apollo Global Management acquired The Fresh Market last year for $1.36 billion.
Wednesday, November 16, 2016
The Fresh Market moving away from its gourmet roots
The Fresh Market debuted lower prices, expanded product offerings and a new logo late last month at three stores in the Triad region of North Carolina. The new look and offerings will expand to 13 more stores in North Carolina on November 30, and then to the company's remaining stores nationwide through early 2018.
Among the changes in effect at the three NC stores, The Fresh Market has doubled the number of aisles and added 1,300 everyday grocery products, including items from Campbell's and Kellogg's, as well as organic and natural brands like Annie's Homegrown and Nature's Path. The company's intention is to transition from being known as a "gourmet specialty chain."
"The reinvention of our stores will place an emphasis on delicious fresh fare, convenience, and health and wellness options," said CEO Rick Ancetti.
Apollo Global Management acquired The Fresh Market in March (see story here: Apollo Global to purchase The Fresh Market) and shortly thereafter closed 13 stores and delayed the opening of four others.
Among the changes in effect at the three NC stores, The Fresh Market has doubled the number of aisles and added 1,300 everyday grocery products, including items from Campbell's and Kellogg's, as well as organic and natural brands like Annie's Homegrown and Nature's Path. The company's intention is to transition from being known as a "gourmet specialty chain."
"The reinvention of our stores will place an emphasis on delicious fresh fare, convenience, and health and wellness options," said CEO Rick Ancetti.
Apollo Global Management acquired The Fresh Market in March (see story here: Apollo Global to purchase The Fresh Market) and shortly thereafter closed 13 stores and delayed the opening of four others.
Thursday, September 1, 2016
Fresh Market delays openings, names Supervalu as supplier
The Fresh Market confirmed earlier this summer that it has re-evaluated certain store openings as it takes time to develop its long-term growth strategy. The stores whose opening dates have been delayed include York, PA and three others in FL, VA and MO.
The store under construction in Blue Bell, PA was not listed and will presumably open as scheduled, although I'm sure The Fresh Market didn't expect McCaffrey's to open across the street when they signed their lease.
During an earnings conference call last November, The Fresh Market CEO Rick Anicetti said the company needed to comprehensively reassess the chain's value proposition due to an influx of competition and a slowdown in sales and profitability. After the company was sold to Apollo Global Capital earlier this year, The Fresh Market announced 13 store closures.
In related news, The Fresh Market announced earlier this month that it had reached a long-term supply agreement with Supervalu to serve as the grocer's wholesaler and distributor. According to a report in Supermarket News, the deal calls for Supervalu to supply The Fresh Market with traditional and signature grocery products across a range of categories. Once The Fresh Market's existing supply contracts expire, Supervalu will become the chain's primary wholesaler.
The store under construction in Blue Bell, PA was not listed and will presumably open as scheduled, although I'm sure The Fresh Market didn't expect McCaffrey's to open across the street when they signed their lease.
During an earnings conference call last November, The Fresh Market CEO Rick Anicetti said the company needed to comprehensively reassess the chain's value proposition due to an influx of competition and a slowdown in sales and profitability. After the company was sold to Apollo Global Capital earlier this year, The Fresh Market announced 13 store closures.
In related news, The Fresh Market announced earlier this month that it had reached a long-term supply agreement with Supervalu to serve as the grocer's wholesaler and distributor. According to a report in Supermarket News, the deal calls for Supervalu to supply The Fresh Market with traditional and signature grocery products across a range of categories. Once The Fresh Market's existing supply contracts expire, Supervalu will become the chain's primary wholesaler.
Monday, February 22, 2016
Kroger eyeing Fresh Market acquisition
A report last month stated that Kroger, the nation's largest traditional supermarket chain, has interest in purchasing The Fresh Market. The Fresh Market had previously acknowledged that it was reviewing strategic alternatives, but speculation had been on a "going private" deal with founder Ray Berry.
The Fresh Market had an estimated $1.9 billion in sales in 2015, but has struggled with expansion and with the health and wellness trend that's leading many customers to buy organic products at lower-priced supermarkets.
Kroger has been experimenting with smaller, fresher-focused formats.
The Fresh Market had an estimated $1.9 billion in sales in 2015, but has struggled with expansion and with the health and wellness trend that's leading many customers to buy organic products at lower-priced supermarkets.
Kroger has been experimenting with smaller, fresher-focused formats.
The Fresh Market opens in Philly's Chestnut Hill
The Fresh Market grocery store opened in Chestnut Hill late last month. It's the chain's first Philadelphia store, and its fifth in Pennsylvania.
The market takes up 21,000 square feet on the ground floor of a new mixed-use property that includes 20 condominium units. The site was formerly occupied by a Magarity Ford dealership that sat vacant for several years. Plans for the store were announced in 2011, but concerns from neighbors delayed the project.
The market takes up 21,000 square feet on the ground floor of a new mixed-use property that includes 20 condominium units. The site was formerly occupied by a Magarity Ford dealership that sat vacant for several years. Plans for the store were announced in 2011, but concerns from neighbors delayed the project.
Thursday, October 9, 2014
Trader Joe's beating up Whole Foods in sales per square foot
Business Insider published an article earlier this week explaining why Trader Joe's sells nearly twice as much per square foot than Whole Foods ($1,734 PSF compared to $930 PSF).
According to the story, "Trader Joe's is cheap." For instance, Trader Joe's sells a bag of quinoa for $4.99, while Whole Foods sells it for $9.99. The story doesn't specify whether or not the bags are the same size, but I think we're supposed to assume they are. The story also doesn't specify what quinoa is. Blogger.com's spell check and I are unsure.
Anyway, the point is that consumers view Trader Joe's as high-quality but inexpensive, and despite Whole Foods' recent and ongoing efforts to lower some prices, analysts say they are not doing enough to market their bargains, so customers don't realize Whole Foods is getting cheaper.
Regarding the sales per square foot numbers, here are some stats from the story:
Trader Joe's - $1,723 PSF
Whole Foods - $937
Publix - $552
Kroger - $496
The Fresh Market - $490
Weis Markets - $335
It should be noted that Whole Foods announced in February that its stores generated an average of $983 in sales per square foot in 2013. And according to stats published by the Food Marketing Institute, the average sales PSF for supermarkets in the U.S. is $360 (based on a median total store size of 46,000 SF and median weekly sales per supermarket of $318,170).
Another reason for Trader Joe's success, according to the article, is that 80% of Trader Joe's products are in-house brands, so customers can't buy them anywhere else. In addition, the product mix is pretty creative (Chili-Lime Chicken Burgers, Cookie Butter), while the mix at Whole Foods is basic in comparison.
Whole Foods has been considered the go-to place for organic and healthy foods in recent years, but lately the competition is catching up, including Walmart.
Lastly, the story included an interesting chart illustrating the projected growth in sales for various grocery formats. Fresh, limited assortment and dollar store formats are leading the way.
Fresh format - 92.2% growth in sales through 2018
Limited assortment - 38.4%
Dollar store - 31.2%
Supercenter - 22.9%
Wholesale - 19.0%
Convenience store - 12.7%
Drug store - 10.6%
Traditional supermarket - 3.6%
According to the story, "Trader Joe's is cheap." For instance, Trader Joe's sells a bag of quinoa for $4.99, while Whole Foods sells it for $9.99. The story doesn't specify whether or not the bags are the same size, but I think we're supposed to assume they are. The story also doesn't specify what quinoa is. Blogger.com's spell check and I are unsure.
Anyway, the point is that consumers view Trader Joe's as high-quality but inexpensive, and despite Whole Foods' recent and ongoing efforts to lower some prices, analysts say they are not doing enough to market their bargains, so customers don't realize Whole Foods is getting cheaper.
Regarding the sales per square foot numbers, here are some stats from the story:
Trader Joe's - $1,723 PSF
Whole Foods - $937
Publix - $552
Kroger - $496
The Fresh Market - $490
Weis Markets - $335
It should be noted that Whole Foods announced in February that its stores generated an average of $983 in sales per square foot in 2013. And according to stats published by the Food Marketing Institute, the average sales PSF for supermarkets in the U.S. is $360 (based on a median total store size of 46,000 SF and median weekly sales per supermarket of $318,170).
Another reason for Trader Joe's success, according to the article, is that 80% of Trader Joe's products are in-house brands, so customers can't buy them anywhere else. In addition, the product mix is pretty creative (Chili-Lime Chicken Burgers, Cookie Butter), while the mix at Whole Foods is basic in comparison.
Whole Foods has been considered the go-to place for organic and healthy foods in recent years, but lately the competition is catching up, including Walmart.
Lastly, the story included an interesting chart illustrating the projected growth in sales for various grocery formats. Fresh, limited assortment and dollar store formats are leading the way.
Fresh format - 92.2% growth in sales through 2018
Limited assortment - 38.4%
Dollar store - 31.2%
Supercenter - 22.9%
Wholesale - 19.0%
Convenience store - 12.7%
Drug store - 10.6%
Traditional supermarket - 3.6%
Thursday, June 5, 2014
The Fresh Market expanding in CA, TX and FL
The Fresh Market isn't worried about Whole Foods' competitive price positioning and feels it is less prone to price sensitivity than its competitors, according to CFO Jeffrey Ackerman.
"Our view is that people are coming to us for the quality of the service, the quality of the food and a different shopping experience," Ackerman said last month.
The company plans to open 23 or 24 new stores in fiscal 2014, seven of which will be in Florida. Recent expansion efforts in Sacramento and Houston have struggled, and stores in Laguna Hills, CA and Dallas-Fort Worth are slated to open in the next year.
Analysts were cautiously optimistic about The Fresh Market's outlook following its first quarter earnings release last month. A Wells Fargo analyst said she was "encouraged to see comps did not decelerate in Q1, traffic was positive, new store productivity is improving and the company is committed to its refocused real estate strategy."
"Our view is that people are coming to us for the quality of the service, the quality of the food and a different shopping experience," Ackerman said last month.
The company plans to open 23 or 24 new stores in fiscal 2014, seven of which will be in Florida. Recent expansion efforts in Sacramento and Houston have struggled, and stores in Laguna Hills, CA and Dallas-Fort Worth are slated to open in the next year.
Analysts were cautiously optimistic about The Fresh Market's outlook following its first quarter earnings release last month. A Wells Fargo analyst said she was "encouraged to see comps did not decelerate in Q1, traffic was positive, new store productivity is improving and the company is committed to its refocused real estate strategy."
Wednesday, June 5, 2013
The Fresh Market posts sales, profit gains in Q1
The Fresh Market announced last week that it rebounded from a disappointing fourth quarter by posting strong sales, comps and profits in the company's first quarter, which ended April 28.
Sales for the quarter were $366.6 million, a 12.9% increase as compared to the same quarter one year ago. Comparable-store sales improved by 3%, and net income for the quarter improved 14.8% to $22.1 million.
Fresh Market CEO Craig Carlock said the company is learning from a business intelligence platform launched a year ago that helps them craft promotions based on an analysis of basket contents. It has provided Fresh Market with "a level of sophistication and timeliness that we previously lacked," according to Carlock.
The Fresh Market operates 131 stores in 25 states. Philadelphia area stores are located in Center Valley, Glen Mills and Horsham.
Sales for the quarter were $366.6 million, a 12.9% increase as compared to the same quarter one year ago. Comparable-store sales improved by 3%, and net income for the quarter improved 14.8% to $22.1 million.
Fresh Market CEO Craig Carlock said the company is learning from a business intelligence platform launched a year ago that helps them craft promotions based on an analysis of basket contents. It has provided Fresh Market with "a level of sophistication and timeliness that we previously lacked," according to Carlock.
The Fresh Market operates 131 stores in 25 states. Philadelphia area stores are located in Center Valley, Glen Mills and Horsham.
Wednesday, March 20, 2013
The Fresh Market sees income, sales rise in fiscal 2012
Earlier this month The Fresh Market reported that net income for their fourth quarter rose 12.6% to $20.6 million on sales of $369.9 million, a 15.3% increase (compared to the same period a year ago). Comparable-store sales rose 1.9% during the same period.
For the full year, which ended January 27, net income rose 24.7% compared to the previous year, and sales gained 20%. Comparable-store sales were up 5.7% for the year.
Despite the positive results, headlines focused on the company's stock, which slid to a 52-week low due to a slowdown in customer traffic during the December holidays.
As of January 27, The Fresh Market operated 129 stores in 25 states, and has nine signed leases for additional stores. Overall, the company expects to add 19-22 new locations in fiscal 2013. The Philadelphia region has three stores, all in Pennsylvania.
For the full year, which ended January 27, net income rose 24.7% compared to the previous year, and sales gained 20%. Comparable-store sales were up 5.7% for the year.
Despite the positive results, headlines focused on the company's stock, which slid to a 52-week low due to a slowdown in customer traffic during the December holidays.
As of January 27, The Fresh Market operated 129 stores in 25 states, and has nine signed leases for additional stores. Overall, the company expects to add 19-22 new locations in fiscal 2013. The Philadelphia region has three stores, all in Pennsylvania.
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