MMR: Mass Market Retailers, August 5, 2019

INDUSTRY NEWS Report O T Cs serve as first line of defense page 13 B T S shoppers prefer physical stores page 16 Greg Smith oversees Walmarts omnichannel supply team page 21 In store tech needs to be improved Report page 22 VOLUME 36 NO 9 WWW MASSMARKETRETAILERS COM AUGUST 5 2019 GREENWISE MARKET Publix Super Markets Inc is bringing its new concept GreenWise Market to Tampa Fla The retailer also plans to remodel an older version of the format in the city converting it into a traditional Publix store during a planned remodel scheduled to begin this month The new GreenWise Market store will be part of the Water Street Tampa development in the citys Channelside district FIND CARE PLATFORM Walgreens has expanded its Find Care platform to include chronic care management featuring connected devices and digital therapeutic solutions for patients with diabetes asthma and chronic obstructive pulmonary disease FOOD LION REVAMP Food Lion has unveiled 92 remodeled stores in five communities in South Carolina and one in North Carolina The company said it made a 158 million capital investment in the stores earlier this year which included remodeling the stores and hiring 2000 additional associates The stores are located in the the greater Myrtle Beach Florence Columbia and Charleston S C markets as well as in Lumberton N C ALBERTSONS ACCESS Albertsons Cos has launched an initiative to make its online grocery shopping websites and mobile applications more accessible and usable for shoppers with disabilities The company said it strives to substantially conform to the Web Content Accessibility Guidelines version 20 Level AA as its accessibility standard The initiative is the result of collaboration known as a structured negotiation between Albertsons Cos and several customers who are visually impaired Amazon Stays In the Retail Limelight SEATTLE Amazon reported strong sales for its fiscal quarter and said its Prime Day sale last month was the biggest shopping event in the companys history topping its combined sales for last years Black Friday and Cyber Monday At the same time the company faces the threat of increased regulatory scrutiny The Department of Justice on July 24 announced an investigation into a number of big technology companies including Amazon Google Apple and Facebook The Justice Departments antitrust division is reviewing whether the companies are stifling competition in ways that have harmed consumers Without the discipline of meaningful market based competition digital platforms may act in ways that are not responsive to consumer demands assistant attorney general Makan Delrahim of the antitrust division said in a statement announcing the move The Departments antitrust review will explore these important issues Treasury Secretary Steven Mnuchin supported the idea of an investigation during an interview on CNBCs Squawk Box television show stating that Amazon has destroyed the retail industry across the United States so theres no question theyve limited competition Not everyone agrees an actual retail apocalypse is under way but it is clear that online retailers led by Amazon have sparked a revolution in the industry And with its Prime Day two day sales event Amazon has created a new shopping occasion in the middle of summer The company says this years event was a big hit with Prime members buying 175 Aldi Puts Expansion In High Gear BATAVIA Ill Aldi has store grand openings planned in a halfdozen states as the grocer proceeds with a coast to coast expansion that by 2022 will take its store count to 2500 in 36 states from about 1900 today Aldis website identifies cities in Alabama Illinois Massachusetts Michigan Pennsylvania and Texas where new and remodeled stores will soon be opened The Germany based company recently opened its first store in Bentonville Ark near Walmarts global headquarters In Minnesota Aldi expects to have at least 70 locations by years end putting it within range of Cub the largest supermarket chain in the North Star State with 77 stores Aldi said its expansion is expected to create 25000 new jobs in stores warehouses and offices over the next three years Its expansion is introducing thousands of new shoppers to the chains no frills retailing model Aldi keeps grocery prices about as low as they can be by displaying items in the cases they were shipped in Customers deposit a quarter to rent a shopping cart and get their money back when they return it minimizing the need to pay employees to retrieve them from the parking lot Aldi has no plastic or paper bags on hand and no one to help customers bag their groceries about 90 of which are store brands Shoppers started lining up more than 2 hours before an Aldi store opening July 25 in DeKalb Ill Store openings are also on tap for the retailers first store in Montgomery Ala eight new stores in Minnesota and four in North Carolina Grocers Go Mobile NEW YORK Food retailers continue to bolster their grocery pickup and delivery capabilities as a growing proportion of shoppers buy at least some of their food online Kroger Co Walmart Giant Food Wakefern Food Corp and Weis Markets Inc were among the food retailers announcing grocery fulfillment related developments in July Kroger chief executive officer Rodney McMullen and Ocado Group CEO Tim Steiner were among the dignitaries attending a July 24 groundbreaking ceremony for a customer fulfillment center in Groveland Fla Scheduled to open in 2021 the automated center will be the second of 20 that Kroger and Ocado plan to build in the United States to enhance Krogers home delivery capabilities The Groveland center also represents Krogers first foray into the Sunshine State Kroger is excited to enter Florida to redefine the customer experience through our industry leading partnership with Ocado McMullen said Theres a substantial demand for Kroger products and services in the state and were eager to offer a new and seamless experience through the customer fulfillment center leveraging advanced robotics technology and creative solutions to provide customers with anything anytime anywhere Kroger and U K based Ocado are already constructing their first customer fulfillment center in Monroe Ohio Next up after Groveland will be centers in Forest Park Ga see related story on page 6 and a yet tobe named city in the Mid Atlantic region Kroger expects the investment in online ordering technology robotic fulfillment and delivery logistics to put the chain in a position to offer customers the seamless shopping environment they increasingly expect from the supermarket retailer Walmart meanwhile opened a prototype grocery pickup facility on July 10 in Lincolnwood Ill The 42000 square foot building is stocked with groceries pet supplies health and wellness items and products used for daily life like diapers household cleaners Another 129 Freds Stores Will Close MEMPHIS Discount retailer Freds Inc continues its retrenchment announcing last month that it was closing another 129 stores leaving it with 80 centered on its distribution center in Dublin Ga The move is the latest in a series of store closings including announcements in April and May from Freds which had 568 stores in 15 states as recently as February according to a court filing Freds said all 166 of its pharmacies including the 69 operating inside the stores recently marked for closure will remain open as the company seeks a buyer for its pharmacy business While it is never easy to make decisions that impact our valued employees and customers this initiative represents another necessary step in our continued efforts to stabilize our business by simplifying our store portfolio and product assortment Joseph Anto Freds chief executive officer said in a statement in July Freds said that it was holding inventory clearance sales at the 129 stores in an effort to refocus its product mix simplify its store portfolio and repay debt Anto characterized the going out ofbusiness sales as savings opportunities for Freds shoppers SPOTLIGHT To page 2 To page 2 To page 2 A grocery distribution center developed jointly by Kroger and Ocado