7-Eleven to focus on fresh foods

According to a 7-Eleven spokesperson, the company is diving deeper into the competitive food business as it plans to eventually make fresh foods 20% of its total sales.

Diminished tobacco sales as well as greater demand for healthier food contributed to the strategy shift.

"We have an internal team of experts... working on our fresh food innovation plans," said spokesperson Margaret Chabris in a conversation with Supermarket News. "We plan to grow this category to 20% of our merchandise sales over the next several years by continuing to study and respond to what the customer wants and by creating proprietary food products that are fresh, high quality, a great value and have the variety, taste and textures our guests want."

7-Eleven currently operates and franchises more than 7,400 U.S. stores.

Food sales boost Family Dollar earnings

Family Dollar reported fiscal fourth quarter earnings yesterday and announced that expanded selections of food played a large part in their sales gains. Overall consumables sales increased by 16% compared to the same period one year ago, with food experiencing double-digit comp-store sales growth.

Net income for the quarter increased 1.4% to $80.9 million, with total sales of $2.4 billion. Total sales increased 10.8% and overall comp-store sales increased 5.4%.

For the full fiscal year ended August 25, the company posted $422.2 million in earnings on $9.3 billion in sales. Compared to the previous year, earnings were up 8.7% and sales increased 9.2%. 

Family Dollar opened 475 stores in fiscal 2012 and expects to open 500 new stores in the current fiscal year.

Family Dollar to sell more refrigerated and frozen foods

Family Dollar reported yesterday that they plan to continue to increase their assortment of food offered for sale, including a greater selection of refrigerated and frozen foods. Largely as a result of the company's partnership with McLane Co., Family Dollar said it added 150 food SKUs in February and expects to add 250 more by the end of July.

The SKUs added - or soon to be added - include the Pepsi line of products, as well as items like cheese, baby foods, snacks and drinks. In addition, Family Dollar increased the number of coolers at about 700 stores so far this year, and plans to add them in 700 more stores by the end of the summer.

The company reported that net income for the most recent quarter rose approximately 12% to $124.5 million. Sales increased 9.6% and comp-store sales rose 5%.

Is Giant planning to compete with Wawa?

Giant Food Stores plans to open its second Giant To Go convenience store in the Lancaster area. The store will be 4,000 square feet and will have three main areas: Meals to Go, Groceries to Go, and Snacks to Go. According to Supermarket News, the store will offer rotisserie and fried chicken, a salad bar, submarine sandwiches (customizable via a toppings bar), coffee, espresso and cappuccino, as well as sushi, breakfast items and soup.

Since Giant sells gasoline at many supermarket locations, I wonder if that's the logical next step for Giant To Go locations.

Supervalu has problems, and experts have opinions

A recent Forbes.com blog post pointed out that Supervalu (Acme and Save-A-Lot in these parts) has problems. "Revenue at Supervalu has declined each of the past two years, earnings have been negative for two of the last three years, and dividends have been declining as well..."

According to the blog post, Former Supervalu President Gene Hoffman questions the company's focus and wonders if its leadership has "the chops" to formulate and execute "a winning multi-front growth strategy."

In addition, a panel of experts consisting of retailers and consultants made a variety of suggestions. Emphasize price and value, and target Aldi's traffic, says a retail advertising exec. Focus on growing the retail formats, especially Save-A-Lot, says an industry consultant. Rely as much as possible on good regional suppliers and niche wholesalers, says an independent grocer.

As the author notes, Supervalu embarked on a three-pronged strategy of wholesale/supply chain, regional retailing and discount retailing. The big question that remains is whether the company, once the country's largest and most profitable food wholesaler and retailer, can survive with these three businesses intact.

Walmart to break ground on small stores

According to Bloomberg, Walmart will begin construction next week on a 14,400 square foot store in Gentry, Arkansas (20 miles from its headquarters). Work on two similar stores in Arkansas will begin in the next two weeks, and Walmart may open as many as 40 smaller stores this year in rural and urban areas.

The story reports that building permits indicate the stores will cost $1.2 million to build and will sit on lots just under 5 acres. They will have 75 parking spaces, a pharmacy and three or four checkout counters, as well as sections for fresh produce, refrigerated foods and frozen items.

From Bloomberg: Wal-Mart to Break Ground on Small Stores Next Week