Sunday, May 5, 2019

Lyft to expand Grocery Access Program

Lyft announced recently that is plans to expand its Grocery Access Program, which provides affordable rides to grocery stores for families in underserved areas.

After a successful pilot program in Washington, D.C., the effort will spread to 14 more markets: Atlantic City, NJ; Baltimore; Chicago; Columbus, OH; Detroit; Indianapolis; Los Angeles; Miami; Philadelphia; Phoenix; Portland, OR; Richmond; and Ottowa and Toronto in Canada.

The Grocery Access Program partners with local organizations and nonprofits to provide low-income families and seniors living in food deserts with deeply discounted flat-fare rides to get to and from grocery stores.

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.

Artificial Intelligence on display at Walmart lab in Long Island Neighborhood Market

Walmart opened its new Intelligent Retail Lab last week inside a 50,000 square foot Neighborhood Market grocery store in Levittown, NY, which is on Long Island. According to the company, the store will test new, innovative ideas with the help of artificial intelligence-enabled cameras, interactive displays and a massive data center (in full view of customers).

Plans call for the IRL team to use real-time information to explore efficiencies that will allow associates to know when to restock products, and make sure shopping carts are available and registers are open. In addition, customers can access interactive, educational displays, and find answers to commonly asked questions.

According to a Walmart executive, the IRL is meant to improve the shopping experience for customers, and also improve the employee experience.

"The technology has been built to improve associates' jobs, the make their jobs more interesting, and to help them alleviate some of the mundane tasks. AI can enhance their skillset in a very rapidly changing world."

Weis to spend $109 million on capital expenditures this year

Weis Markets announced late last month that the company plans to invest $109 million in capital expenditures during 2019. The investments are slated for new stores, remodels, supply chain improvements and technology upgrades.

In the same announcement, a Weis executive said that sales rose to a record $3.5 billion in 2018, with comparable-store sales increasing in 18 of the past 19 quarters.

The Weis executive attributed the company's recent success to technology investments, targeted holiday promotions, price improvements and more efficient store-level inventory management.

Sunday, March 31, 2019

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."

Giant's Warrington, PA store set to open this week

Giant plans to open a store at Doylestown Pointe Plaza in Warrington, PA this Friday, April 5, one day after it closes for business in nearby Jamison on Thursday, April 4.

The new location will feature a Beer & Wine Eatery and a full-service pharmacy, in addition to Giant's typical supermarket departments. The space was previously occupied by Redner's Market, which closed a year ago.

Grocery store openings increased 30 percent in 2018

New grocery store openings were up 30% in 2018 as compared to the prior year, according to a report by JLL. More than one-quarter of the new stores were in Florida, California and Texas as a result of expansion by Publix, Sprouts Farmers Market, Aldi, Kroger and H-E-B.

"Grocery is one of the strongest retail sectors, with nearly twice as many new stores opening than closing last year," according to JLL Director of Research James Cook.

Cook also pointed out that shopper habits have shifted to more frequent, shorter trips, and as a result, food retailers are focusing on developing smaller format stores.

"In 2019 we expect to see even more grocery stores rolling out their smaller-format stores as they battle razor-thin margins in prime locations, while still serving evolving consumer needs," said Cook.

Aldi, which accounted for 16% of total new stores by square footage, continues to expand at a rapid pace. And new formats, like Giant's 9,500 square foot Heirloom Market in Philadelphia, were recently introduced.