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  • Whether they have the local benefits of an independent or the scale of a chain, supermarket operators need as much information as they can take in about their guests’ buying patterns, preferences, and demographics. But which sources help them the most?

    Supermarket News Intelligence recently investigated where more than 100 retailers turn to collect data on customers and their spending habits in our 2023 Tech Market Leader Report.

    “It’s still an AI story,” Perrier told SN recently at the FMI Midwinter Conference in Marco Island, Fla. “ I think the big difference is…years ago we were talking about personalization and targeting…now we’re actually seeing real use cases, real demos. Large scale language models are being used to help retailers generate revenue and it’s quite powerful.”

    In this special edition of our SN Off the Shelf podcast — SN TechWire — SN spoke with Sylvain Perrier, president and COO of grocery ecommerce software company Mercatus, about how grocers can smartly use personalization to drive loyalty and customer retention.

    On today’s TechWire podcast, you’ll learn:

    How can grocers can be leveraging personalization to get the whole basketWhat’s more important today: ecommerce or engagement?Why AI isn’t going anywhere anytime soon (and how you can best leverage it)

    Take a listen.

  • When given the chance, those opposing the Kroger, Albertsons merger have let themselves be heard. It happened again in Colorado, where a number of people stood up during a meeting attended by Federal Trade Commission Chair Lina Khan and urged the agency not to approve the deal.

    Grocery price increases and job security are the two top concerns expressed by consumers, workers, and unions.

    But what if grocery prices remained competitive after the merger and a minimal number of jobs were lost? It most likely will happen, according to Eric Fruits, senior scholar at the International Center for Law and Economics. Fruits is the co-author of the white paper titled, “Food-Retail Competition, Antitrust Law, and the Kroger/Albertsons Merger.”

    In the latest episode of SN Off the Shelf, Supermarket News Senior Editor Bill Wilson talks with Fruits about the Kroger, Albertsons merger which, according to Fruits, enough has been done to satisfy the parameters of a fair deal.

    Take a listen.

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    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

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  • A little over a year ago Ahold Delhaize USA made a major move in the retail media game.

    Peapod Digital Labs, the e-commerce and digital innovation arm of Ahold Delhaize USA, announced plans to grow its AD Retail Media network into an end-to-end, in-house retail media business. That will enable consumer packaged goods partners to better leverage the long reach of Ahold Delhaize grocery retail brands, which encompass more than 2,000 stores, process over 23 million transactions weekly, engage nearly 24 million active loyalty card users and generate more than $51 billion in annual sales.

    In this episode of SN Off the Shelf, Supermarket News Senior Editor Bill Wilson had the chance to check in with SVP of Retail Media at Ahold Delhaize USA Bobby Watts at Groceryshop 2023 in Las Vegas.

    Watts believes retail media has not reached its peak yet and cautioned that retailers need to keep the consumer in mind when executing a plan.

    Take a listen.

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    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • The landscape for center store beverage categories has been shifting dramatically, as consumers gravitate toward newer players that provide functional benefits, like prebiotic and probiotic sodas, as well as old standbys like energy drinks.

    Supermarket News Executive Editor Chloe Riley sat down with Numerator’s Mike Scavuzzo at the recent EXPO East Natural Products show in Philadelphia, Penn. to talk about the significant growth in functional beverages. 

    Highlights from Scavuzzo’s 2022 recap on the prebiotic and probiotic soda category:

    Just shy of $162 million in category projected sales on 107% growth vs 2021Total households, up 71%Average spend per household, up 22%Purchase frequency, up 12%Spend per trip, up 9%Spend per unit, up 2%Units per trip, up 7%

    “The brilliance of these brands is that they took a high penetration, mainstream category and made it ‘better for you.’ Mainstream means consumer approachability and little education needed to understand what the product is.. Better for you is self explanatory. That deadly combo is making a dent in CSD (carbonated soft drink) sales and you better believe Coke and Pepsi are on high alert.”

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • Retail media has been exploding over the last year, and Dollar General is right there riding the wave.

    However, the discount retailer is taking a different approach. Rather than doing retail media in-house, Dollar General is partnering with third parties to deliver the message to consumers.

    In this episode of SN Off the Shelf, Supermarket News Senior Editor Bill Wilson talks with Chad Fox, who is vice president and chief marketing officer at DG. Hear how Dollar General has taken on the world of retail media with its own flair.

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • The plant-based category has had its share of ups and downs. A year ago, The Guardian asked whether the plant-based sales phenomena of the last decade was finally starting to be on the outs. But recent data from Kroger data arm 84.51° suggests that consumers are still choosing plant-based, especially in the plant-based dairy category.   

    Some key findings from the 84.51° data: 

    Shift in spend: Shoppers who engage with plant-based foods generally reduce their engagement with animal-based foods. Shoppers who increased their plant-based engagement overall increased their dollar spend in total plant-based foods by 92%, while only increasing animal-based spending by 9% in the same period

    Consumers are choosing plant-based: 38% of surveyed shoppers indicate they are choosing plant-based milk instead of animal-based milk; 25% are choosing plant-based meats instead of animal-based meat; and 22% are choosing plant-based yogurt instead of animal-based yogurt

    Ecommerce as growth engine: Plant-based foods hold a higher market share in ecommerce likely due to easier searchability and increased variety of products 

    Over 1.4 million Kroger households engaged with plant-based categories on their ecommerce platforms during the 12-week study period. While Millennials were the most engaged, all generations were represented, illustrating a broad opportunity to optimize omnichannel strategies based on consumer buying preferences.

    At the recent EXPO East natural products show in Philadelphia, Penn., Supermarket News Executive Editor Chloe Riley sat down with 84.51° Lead Consultant, Insights Account Manager Shannon Weis, to talk about how consumers are actually shopping plant-based today. 

    Take a listen.

  • After nearly four decades of serving the natural and organic CPG industry, natural products media group New Hope Network has announced that the 2023 Natural Products Expo East will be the trade show’s final edition. 

    Natural Products Expo West will continue to take place annually in Anaheim, California. And springing up in place of EXPO East is a new show called Newtopia Now — which will be designed to provide more opportunities for brands to meaningfully participate, regardless of where they are at in their lifecycle.

    Supermarket News Executive Editor Chloe Riley spoke with Jessica Rubino, vice president, content at New Hope Network, about trends on the show floor at the final EXPO East, as well as taking a look ahead, for an exciting preview of the group’s latest trade show: Newtopia Now.

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • Ahold Delhaize USA CEO JJ Fleeman was at Groceryshop 2023 in Las Vegas last week talking about omnichannel strategies.

    However, you must know how customers are responding to a given channel to come up with an effective overall experience. In that regard, Ahold Delhaize has insight research teams and work with CPGs. Analysts and economist teams also provide input, and shop-a-longs are another way the grocer monitors trends and changes in shopper behavior.

    Supermarket News Senior Editor Bill Wilson had the chance to catch up with Fleeman at the show, and talked about everything ranging from the omnichannel experience to shrink inventory and retail theft.

    In this episode you will hear about:

    Ahold Delhaize’s omnichannel strategyActing quickly on shopper trends and behaviorDigital media growthTechnology at fulfillment centersMarket consolidationRetail theft
  • Bold is certainly one word to describe the strategy of the West Des Moines, Iowa-based Hy-Vee over just the past five years. In that amount of time, the retailer has continued to ramp up its growing expansion in pharmacy and health care; rebranded its Hy-Vee Gas convenience concept to Hy-Vee Fast & Fresh; and continued to lead the market with its foodservice and prepared foods strategies.

    Hy-Vee’s foray into health care and pharmacy over the past decade (and even just the past five years) has been extensive. In 2014, the retailer acquired Amber Pharmacy, one of the largest privately owned specialty pharmacies in the country and a driving force behind Hy-Vee’s national health care strategy. That acquisition allowed Hy-Vee to move forward with providing specialty pharmacy services in all 50 U.S. states and Puerto Rico. 

    Perhaps the retailer’s most ambitious step into health care would be the launch of the first Hy-Vee Health infusion clinic, opened in April in West Des Moines. (A second opened in Chicago in August)

    “We’re viewed as a food company, but our largest department is pharmacy,” said Jeremy Gosch, Hy-Vee CEO since 2022. “So health care plays a massive, massive role in Hy-Vee, and I think we’re just scratching the surface of what we’re going to be doing with health care moving forward.” 

    Supermarket News Executive Editor Chloe Riley sat down with Gosch at Hy-Vee headquarters, and talked with him about foodservice at retail, the company’s continued branding around fresh, and how health care is the future.

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • A recent monthly category report indicates that, when it comes to groceries, consumers are very much fluctuating between what, how much, what brand, and where they purchase — all as a reaction to the impacts of inflation.

    Along those lines, the July category update from 210 Analytics (with data provided by Circana) found that during the same visit, consumers might purchase some premium products, while going ultra-value on other items.

    So it’s a toss up. Consumers have all kinds of purchase intents when they arrive at the grocery store, and their baskets reflect that. 

    Supermarket News Executive Editor Chloe Riley spoke with Anne-Marie Roerink, president of 210 Analytics, for a look at what’s driving some of this behavior (in addition to inflation), as well as a category update across meat, seafood, and produce.

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • In early August discount grocery store operator Save A Lot sold the last of its 18 stores to become a wholesaler and licensor to the Save A Lot store network.

    It was a natural transition for Saint Ann, Mo., based retailer, which will now focus on providing the right core offering and the right framework for its network of independent retailers.

    “As we’ve made a strategic shift to become a licensed wholesaler, it’s clear that our long-term growth momentum must be rooted in the success of our strong network of retail partners,” said Leon Bergmann, CEO of Save A Lot, in a statement following the 18-store selloff.

    The move to a wholesaler actually started in 2019 before Bergmann became CEO of Save A Lot, but he believes it was the right move to make.

    Bergmann sat down with Supermarket News Senior Editor Bill Wilson to talk about the move to a full-fledged wholesaler as well as other topics like food deserts and grocery price inflation, which Bergmann believes has not reached its peak.

    In this episode you will hear about:

    Why Save A Lot made the pivot to the wholesale levelHow Save A Lot will focus on fresh offerings in its distribution networkSave A Lot’s strategy to promote a fresh approachSave A Lot’s pricing approach throughout its networkThe impact of food deserts in the U.S.The status of grocery price inflation

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • Dutch multinational retail and wholesale holding company Ahold Delhaize, which operates the Stop & Shop, Giant, Food Lion, and Hannaford brands in the U.S., is coming off a strong second quarter that saw group net sales increase 4.3% year-over-year and comparable sales excluding gas rise 3.6%.

    Net consumer online sales improved 9.3% vs. Q2 2022 and the underlying operating margin was 4.1% with a modest decline in the U.S. Ecommerce penetration in the U.S. reached 8.1% during the first half of the year.

    Ahold Delhaize now expects free cash flow in the range of $2.2 billion to $2.4 billion and is holding onto its 2023 projections of an underlying margin greater than 4%.

    But success this year has gone beyond the numbers for Ahold Delhaize, and Supermarket News Senior Editor Bill Wilson was able to check in with company CEO Frans Muller to talk about everything from inflation to store operations.

    In this episode you will hear about:

    Ahold Delhaize’s private label brandMuller’s take on inflation moving forwardThe store’s omnichannel strategyU.S. business outlook for the rest of 2023Labor challengesSustainabilityPlans for store expansion and upgrades

    Take a listen.

  • Are your shelves stocked? And if not, why not? That’s the question we’re exploring today with Greg Buzek of global research and advisory firm IHL Group, which just released new research around global retail sales. 

    In 2023, the total cost of inventory distortion is projected at $1.77 trillion, according to the IHL research — down $172 billion from 2022 with out-of-stocks accounting for $1.2 trillion and overstocks totaling $562 billion.

    The study also looked at the true cost and experiences of consumers who reported the reasons they left stores without buying the items they planned to purchase.

    According to the study, although consumers have seen improvements in on-shelf availability, they list various reasons for leaving without their items including: sizes not being available, lack of employee help, products locked up or in the stockroom, or empty shelves. 

    Take a listen.

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    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • Grocery food prices may have reached a tipping point. For the second straight month, the Consumer Price Index for food-to-home was relatively flat. However, shoppers are still paying 23% more on average per unit for food and beverage across the store.

    Trips to the grocery store are on the rise, but the amount purchased with each trip has become smaller as shoppers continue to grapple with inflation.

    In this episode of SN Off the Shelf, Supermarket News Senior Editor Bill Wilson talks with Jonna Parker, principal of the Fresh Foods Team Lead at Circana, about the inflation story over the last year.

    In this episode you will learn:

    The latest data and trends about grocery prices and the impact at the grocery storeThe current trade efficiency from store promotionsHow current shopper behavior is affecting purchasingThe influence of the “price cliff”Strategies grocers can implement for the rest of the year

    Take a listen.

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • Retail theft is on the rise across the country, and grocers are doing all they can to neutralize the threat.

    However, in New York City, politicians are working to take away an important tool which grocers say deters crime — facial recognition software.

    The New York City Council is currently considering a measure that would make it illegal to use facial recognition software within city limits. Grocers are fighting the move, saying that if the legislation becomes law, they will have to go back to taping up photos of repeat offenders near cash registers in the hopes a worker recognizes them when they enter the store.

    Grocers say they also believe the rise in crime is putting their own workers in the line of fire. Many retailers depend on employees to either stop theft before it happens or get in the way of it while it is going on in the store. Some have used store design to prevent crime, like a Walgreens in Chicago that put most of its merchandise behind the counter. A Safeway just outside of San Francisco recently added security gates.

    Avi Kaner is the co-owner of the Morton Williams supermarket chain in Manhattan. Kaner said he feels that small businesses cannot combat theft effectively without tools including facial recognition, adding that he personally  hired off-duty New York police officers for the chains’ 16 locations, costing him over $1 million to curb shoplifting.

    Supermarket News Senior Editor Bill Wilson caught up with Kaner and talked about the challenges he faces and his concerns around the potential loss of the software. 

    In this episode you will learn:

    The current efforts in the city to ban facial recognition technologyWhy some New York grocers are concerned about the potential loss of the tech How the Morton Williams supermarket chain currently deals with theft

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • The IDDBA show floor was busy at Anaheim, Calif. this year (attendance was way up according to show officials) and several vendors mentioned both “quality and quantity” among attendees — meaning lots of retail buyers.  

    The concept of “indulgence” was also going strong on the show floor. The message at IDDBA was that it’s okay for retailers to encourage a little indulgence among consumers, and it can be included in the overarching message around health.

    Supermarket News Executive Editor Chloe Riley spoke with SN Contributor Mark Hamstra, for a breakdown of the trends he saw on the show floor at the recent IDDBA show in Anaheim, Calif.

    In this episode, you’ll learn:

    Why the concept of “little indulgences”is still going strong among consumersKey challenges retailers face right now in the dairy-deli-bakery areaOther trends still going strong in dairy, bakery, and deliWhy grocers need to up their delivery gameThis was the first show with IDDBA’s new president and CEO, David Haaf: find out what his vision is like for IDDBA moving forward 

    Take a listen.

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening.

  • A recent report indicates that some 80% of retailers said their ability to attract and retain workers has been challenged over the past year. In our recent SN Fresh Trends Survey, grocers also confirmed that labor continues to be a challenge. 

    Retail and grocery are asking associates to do more with less. The average store has 44-plus point solutions running the shopping experience; and disconnected solutions are guaranteed to make an associate’s job harder. Overworked, unhappy associates can easily lead to poor shopper experiences.

    In this special edition of our SN Off the Shelf podcast — SN TechWire — SN spoke with Shamus Hines, CEO of Upshop, a tech firm focused on optimizing store operations, about how grocers can be leveraging tech to retain employees. 

    On today’s TechWire podcast, you’ll learn:

    Why institutional knowledge is being lost in the industry and what you can do to counteract that loss  Why it matters to shift from a focus on “process improvement” to “people empowerment”How gamification can be an opportunity for successTips for how grocers can get associates to lean into and embrace technology  

    Take a listen.

    **

    Have a pitch for the podcast? Contact the SN staff at [email protected]. And thanks for listening.

  • Grocery stores are using technology to reach out to shoppers on-site, and over the next couple of years the experience is expected to be completely different compared to how it is today.

    In late May, Kroger announced it was expanding its retail media strategy with the addition of digital screens that facilitate video advertising across 500 stores.

    Cara Pratt, senior vice president at Kroger Precision Marketing, said the screens will be integrated with the retailer’s 84.51 degrees data science platform “to create an engaging and valuable experience for our customers, associates, and brands.”

    Earlier in the year, Cooler Screens conducted a survey that involved 3,750 brick-and-mortar shoppers on the effectiveness of in-store media and digital ads and found:

    79% reported a positive impact on their shopping experience82% found in-store digital ads memorable56% made unplanned purchases prompted by the ads they saw

    So where is this trend heading and how will grocers use the technology to reach customers effectively? Supermarket News Senior Editor Bill Wilson talked with Arsen Avakian, CEO of Cooler Screens, about the movement and where it is headed.

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening. 

  • Consumers are still crazy for candy. With household penetration at 88% in 2022, candy is still going strong (especially chocolate, which had a 56% share of sales in the category in 2022) — this according to a report from 210 Analytics.

    Supermarket News Executive Editor Chloe Riley spoke with Anne-Marie Roerink, president of 210 Analytics, for a breakdown of the trends they both saw on the show floor at the recent Sweets and Snacks show at McCormick Place in Chicago. 

    Take a listen.

    **

    Have a pitch for the podcast? Reach out at [email protected]. And thanks for listening. 

  • When you beat Amazon at its own game, it’s big news. Supermarkets now have the stage, as a recent survey showed the group is a top performer in terms of online food shopping.

    The Feedback Group, which provides actionable stakeholder feedback, conducted the research with 1,000 shoppers, asking them about their digital experience. Supermarkets topped the list with an impressive overall satisfaction rating of 4.40 on a five-point scale. Amazon followed closely behind with a score of 4.30, while mass retailers, primarily Walmart and Target, secured third place at 4.26. The research further indicated that value-oriented stores, such as Aldi, Lidl, and Grocery Outlet, achieved a rating of 4.11, followed by club stores at 3.99, and dollar stores rounded off the list with a 3.90 overall satisfaction score. Across all shoppers, the overall satisfaction score was 4.21.

    Brian Numainville, a principal with the Feedback Group, saw it all coming. He said over the past few years supermarkets have invested a ton of money and time improving the ecommerce experience for shoppers, and the COVID-19 pandemic only put the strategy on high.

    Supermarket News Senior Editor Bill Wilson talked to Numainville about the survey and how supermarkets can continue to improve in the digital sector, which caters to a young audience.

    Take a listen.

    Have a pitch for the podcast? Reach out at [email protected]. Thanks for listening.