Study finds that dollar store produce as good as supermarket produce

A study conducted by the University of Nevada Las Vegas (UNLV) concluded that the quality of fruit and vegetables at dollar stores is as good as the produce at conventional grocery stores. For the study, fruit and veggies at 14 dollar stores were compared in terms of color, cleanliness, freshness and firmness with produce at 40 traditional food retailers in the Las Vegas metro area.

"The dollar store fruits may be ripe - and you'll have to eat it soon - but it's completely good quality," according to UNLV Professor Courtney Coughenour.

The study also found that produce costs much less at dollar stores, although the variety offered at dollar stores was not as good. None of the dollar stores carried pears, for instance.

UNLV is hopeful that its findings will aid public health efforts to boost accessibility to affordable, nutritious food, since 17.3 million people in the U.S. live in "food deserts," which are defined as low income areas that are more than one mile from grocery stores.

Dollar stores continue to expand throughout the U.S., and the major chains continue to ramp up their selection of produce and refrigerated space.

Aldi planning a major product expansion in 2019

Earlier this month Aldi announced a major product expansion to go along with its ongoing efforts to open new stores and upgrade existing locations. With the product expansion, slated to roll out early next year, Aldi says 20% of items in every store will be new when compared to the product mix during the same time one year prior.

The effort will focus on fresh, organic and easy-to-prepare offerings, and will boost the store's selection of fresh food by 40%. For instance, Aldi says it will have more ready-to-cook and organic fresh meat, a bigger assortment of produce, such as ready-to-eat sliced fruit and organic selections, and new vegan and vegetarian options such as kale and quinoa burgers, and chickenless patties and tenders.

Aldi also plans to offer a broader array of grab-and-go items like single-serve guacamole and organic hummus, fresh fruit and vegetable packs, fresh organic salsa, antipasti salad, as well as more drinks and refrigerated beverages. The retailer also said it will have one of the nation's largest selections of private label milk alternatives.

"We're in the middle of a five-year growth program, where we're opening over 800 stores to get to just under 2,500 stores by the end of 2022," said CEO Jason Hart. "We're spending a lot of money on that: $3.4 billion invested into new unit growth and $1.9 billion into the existing network of stores to remake the shopping experience, to give it a modern market feel and a little more space. We're adding about 20% more square footage to the stores."

Dollar General expanding store count, adding fresh produce

According to an article in Supermarket News, Dollar General plans to add 900 new locations this year and pending a successful market test, will add fresh produce to hundreds of remodeled locations.

The company has introduced "traditional plus" stores that include 34 cooler doors to merchandise an expanded perishables assortment (by year-end, the company expects to have an average of 20 cooler doors per store, up from 10 in 2012). And of the 750 traditional plus stores that are expected to be in operation by the end of the year, about 450 will carry fresh fruits and vegetables.

According to Dollar General CEO Todd Vasos, "The ability to offer produce, particularly in areas with limited grocery availability, represents an attractive growth opportunity for Dollar General in the years ahead."

The company also plans to roll out an expanded assortment of better-for-you products at select stores, with a focus on high protein and low salt options.

Aldi to spend billions on new stores and remodels

Aldi announced earlier this year that it plans to remodel more than 1,300 stores by 2020 at a cost of $1.6 billion. The remodeled stores will focus on fresh items, including produce, dairy and bakery sections, and feature open ceilings, natural lighting and environmentally-friendly building materials.

Currently Aldi owns and operates about 1,600 stores in the U.S., and by the end of 2018 it expects the number of stores to exceed 2,000. The company says that an investment totaling about $3 billion will be necessary to acquire land, facilities and equipment for the new stores.

Locations for new stores coming soon to the Greater Philadelphia market include Limerick, PA and Voorhees, NJ, among others.

Walmart wants stores to improve fresh grocery performance

According to a New York Times story last week, Walmart execs issued a memo to store managers across the country urging them to improve performance on chilled items in its dairy, meat and produce departments in order to improve sluggish sales.

Walmart has about 20 percent of the nation's dry grocery business, but only 15 percent of the fresh grocery business, indicating that it is less competitive in that area.

The memo, leaked by an unhappy store manager, aims to ensure that aging meat and baked goods are priced appropriately so they sell before their expiration dates. The memo also tells stores to remove expired dairy products and eggs, and to execute the "Would I buy it?" mentality.

Some analysts say the problem isn't the store managers themselves, but the lack of employees to do the work needed.

"The fact that they don't do some of these things every day, every shift, shows what a complete breakdown Walmart has in staffing and training," said Retail Consultant Burt P. Flickenger III.

Although Walmart has 1.3 million American workers, a report last month issued by Wolfe Research claims that they would have 200,000 more workers if employee growth kept up with square footage growth.

Senior executives have told analysts that they recognize the problems and are allocating additional hours for workers to spend time in the deli, bakery, overnight stocking and at cash registers. However, an assistant store manager told The Times that the company was refusing to let him add more employee hours to complete these daily tasks. As a result, he said his store has been forced to throw out more milk, eggs and produce than in previous years.

McCaffrey's reaping harvest from local greenhouse

McCaffrey's Market, with stores in Pennsylvania (Yardley, Newtown) and New Jersey (Princeton, West Windsor), is now selling produce "that's just about as local as you can get," according to company officials.

Produce is bring grown hydronically by New York-based BrightFarms in a newly constructed, 50,000 square foot greenhouse down the road from one of McCaffrey's stores.

"We're going to be getting baby romaine, baby kale, spring mix and baby arugula," according to the company's produce buyer. The packages, filled at the greenhouse, will bear a sticker indicating the product was grown locally for McCaffrey's.

Later harvests will yield additional varieties of produce.

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