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Amazon said it plans to open its first new brand of grocery store in California next year, as it amps up its ambitious push to become a bigger name in food.

“Amazon is opening a grocery store in Woodland Hills in 2020,” an Amazon spokesperson confirmed to CNET, soon after the company published four new jobs postings for the location. Woodland Hills is a neighborhood in Los Angeles.

The store will be different from Amazon-owned Whole Foods, the company said. It didn’t say whether it will open more of these locations, what its selection or pricing will be, or what the brand name is. But in the jobs postings, the company described the Woodland Hills location as “Amazon’s first grocery store,” suggesting that it will have the Amazon brand name and that the company could expand to multiple sites.

The store won’t use the company’s Amazon Go technology, which allows customers to check out without waiting in line. Instead, checkout will be conventional as at other grocery stores, the company said.

In addition to Whole Foods, which Amazon bought for $13.2 billion in 2017 and has over 500 stores, the company offers grocery delivery through Amazon Fresh, the main Amazon website and Prime Now, as well as food at Amazon Go.

The Wall Street Journal in March wrote about the existence of Amazon’s new grocery store format, which the company hadn’t confirmed until this week. Last month, the publication said Amazon was already working on additional stores in Los Angeles, Chicago and Philadelphia.

The new store, though with only one confirmed location so far, points to Amazon’s growing ambition in the roughly $800 billion US grocery market, where rival Walmart is the leader and Amazon, even after its Whole Foods deal, remains a small player. Expanding in the grocery sector helps Amazon, the world’s largest online retailer, in a number of ways: It reinforces customer loyalty because people tend to shop at a local store every week and it could allow the company to continue its fast revenue growth, which typically hovers around 20% every quarter despite its massive size.

Additionally, the new line could let Amazon move into the more mainstream grocery store business, while maintaining Whole Foods as a higher-end store for organic and specialty foods. This work could offer new competition to Kroger, SuperValu and many other supermarket chains.

While Amazon is known for skillfully pushing into new markets, the new store comes with lots of risk. Several of Amazon’s other physical store lines, including Amazon Go and Amazon Books, aren’t yet huge moneymakers. It’s also shuttered its line of mall kiosks, which sold Amazon devices and smart-home gear. Plus, the company would have to spend years building out a new chain of stores then bank on people switching their weekly habits to go to them. Added to that, the grocery business offers razor-thin margins, so there’s little wiggle room for Amazon to lower prices while still trying to bring in a profit.

Amazon posted job openings for a store lead, grocery associates and food service associates at the Woodland Hills store. The store has been reported to be a former Toys R Us that’s about 35,000 square feet in size.

When asked if the new stores will compete against Whole Foods or signal a move away from investing in that brand, Amazon said no, offering strong support for continuing to grow that business.

“When it comes to grocery shopping, we know customers love choice, and this new store offers another grocery option that’s distinct from Whole Foods Market, which continues to grow and remain the leader in quality natural and organic food,” the Amazon spokesperson said, noting that Whole Foods opened 17 locations this year and that more are planned. The spokesperson said Amazon will continue to invest in grocery delivery with Whole Foods.

In another sign of Amazon’s growing interest in the grocery business, the company last month did away with its $14.99 monthly fee for Amazon Fresh grocery delivery. The change undercuts rival Walmart’s new Delivery Unlimited program, which costs $12.95 a month and was just introduced in September.

Source: cnet.com

Wegmans, the 103-year-old grocery chain that has a rabid following, opened its first New York City store. The 74,000-square-foot location, which was first announced in 2015, is located in the Brooklyn Navy Yard.

Wegmans is the buzziest part of the former military base on the East River that’s currently undergoing a billion-dollar renovation with new offices and retail space.

The grand opening reportedly drew long lines of thousands of fans, according to multiple news reports. The grocery store has developed a fanatical following for its affordable prices and high-quality food. Wegmans said its Brooklyn store sells nearly 50,000 items, 2,000 of which are organic.

Whole Foods Market will install a robotic barista to provide in-store coffee service at its new Houston-Midtown location through a partnership with Austin-based Briggo, according to a press release.

After launching in 2018, Briggo is making its grocery store debut with Whole Foods, offering a novel concept for the retailer and its customers in one of its newest stores.

Briggo’s order-ahead app promises to shave time off shoppers’ morning coffee runs, while digital kiosks address efficiency and customer experience in-store. Restaurant chains across the U.S. have added ordering kiosks in recent years, so the technology shouldn’t be a leap for shoppers to use. Customers can also purchase packaged Briggo coffee to brew at home, which will be available at the Houston-Midtown store or online.

The novelty of the robotic barista may draw curious coffee drinkers in the short-term and could drive a sales bump as the new Houston store gets going. Long-term, the retailer will need to see sustained sales and labor savings to justify expansion to other stores.

Grocers are applying this same cost-savings assessment to other automated technologies flooding the industry, from shelf-scanning bots to micro-fulfillment.

Whole Foods is widely known for its in-store coffee service. The retailer has a full-service espresso and coffee bar at many locations and a Capital Commons cafe in its flagship Atlanta store, all of which sell its house Allegro brand. Its Lincoln Harbor, New Jersey, location is slated to have an outpost of the Brooklyn-based coffee shop Cafe Grumpy.

The U.S. coffee market has increased in volume by 3.8% in 2018, according to Allegra World Coffee Portal’s 2019 Project Cafe USA report. Allegra conducted a survey and found that the U.S. coffee shop market grew to a valuation of $45.5 billion last year, but the industry faces issues with labor costs and increased competition.

The store is set to open Nov. 7.

Source: grocerydive.com

Walmart is selling ModCloth to Go Global Retail. The terms of the deal, expected to close later this year, were not announced.

The discount giant acquired ModCloth in March 2017 as part of a move to increase its brand portfolio and target younger, higher-income shoppers with brands not available on Amazon. But ModCloth, along with several other of the acquired brands, including Bonobos, have yet to turn a profit, according to Recode.

Founded in 2002, ModCloth sells exclusive indie fashions and its own vintage-inspired line of apparel and accessories, with a target audience of women 18 to 35. In addition to its e-commerce capabilities, ModCloth has opened several showroom-styledstores. It also has a deal with Nordstrom.

Go Global Retail describes itself has a brand investment platform for strategic investors in the consumer sector. It has worked with other apparel companies including Guess and Billabong, according to its website.

“We believe that ModCloth’s strong brand equity positions it for growth in the future,” said Ashley Hubka, senior VP of corporate strategy, development and partnerships at Walmart. “We feel good about the progress at ModCloth and believe that Go Global’s team and scale out strategy presents an attractive opportunity for the employees and customers of this beloved brand.”

Go Global said that ModCloth will continue to operate as a freestanding, independent brand out of its current operational set up. Go Global Retail will invest in the fashion retailer’s digital capabilities, including artificial intelligence and predictive analytics.

“We believe that together with current management, ModCloth has the ability to become a stronger player in the premium fashion market, nationally as well as internationally,” stated Go Global’s Jeff Streader.

ModCloth will continue focusing on its core customers; championing values of female empowerment and inclusivity; and further serving their passionate buying community by celebrating their stories and offering a full range of sizes, the company stated.

Source: chainstoreage.com

Debt-laden French retailer Casino is in talks to sell its French discount store chain Leader Price to German low-cost rival Aldi.

The move, which confirms a report by French daily Les Echos, comes as Casino CEO and controlling shareholder Jean-Charles Naouri is hunting for ways to ease the company’s debts – and those of parent company Rallye – in part via asset sales.

Casino said in a statement that following an expression of interest from Aldi France, the two groups had “entered into discussions with a view to have Aldi France submit a binding offer,”

Les Echos said earlier that Casino was poised to sell Leader Price, which had 2018 sales of 2.5 billion euros ($2.8 billion), to Aldi in a deal estimated to be worth 400 million euros.

A sale of Leader Price was expected by analysts after Casino said last month it was targeting the sale of 2 billion euros worth of assets in addition to the 2.5 billion initially sought to reduce its debt burden.

The retailer has mandated BNP Paribas to handle a possible deal, Les Echos added.

Source: uk.reuters.com

Midwestern retailer Meijer has completed a transformative 15-month initiative to streamline the checkout process at all of its stores.

The company has now introduced Shop & Scan technology at all of its stores across the Midwest.

“As we’ve rolled the program out in six states, the response has been incredibly enthusiastic,” said Stephanie Brackenridge, director of customer experience for Grand Rapids, Mich.-based Meijer. “Customers have appreciated the ability to have a choice in shopping how they want, depending on how their day is going. Many are finding the opportunity to personalize their store visit with a cell phone is a great way to save time and help avoid lines.”

Shop & Scan works through an innovative mobile app that allows customers to shop and bag as they go, giving them the opportunity to avoid lines and personalize their shopping depending on their day.

Once they download the free Meijer Mobile App, customers use Shop & Scan  to scan bar codes on items and bag their own groceries. A running total of items purchased is viewable as they shop throughout the store. Once a customer has finished shopping, they simply scan their phone at a self-checkout lane and pay, making the checkout experience quick and easy.

Brackenridge said that the most popular features among Meijer customers included the integrated shopping list, running total, and the ability to clip any available mPerks loyalty program coupons for items scanned.

In addition to Shop & Scan, the retailer offers Meijer Home Delivery and a pickup option at all 246 stores in six states, providing customers multiple ways to shop the retailer’s stores depending on their needs for that day.

Since the original pilot launch last year in Grand Rapids, the Meijer Mobile app has been downloaded more than 1.5 million times, while the initiative has steadily expanded to stores throughout Michigan, Indiana, Ohio, Illinois, Wisconsin and Kentucky. Once the app was downloaded, more than 80 percent of Meijer customers have repeatedly used Shop & Scan as part of their shopping experience.

Source: progressivegrocer.com

With Europe as its proving ground, there is potential for Ahold Delhaize to bring this technology stateside to its banners where several retailers, from Albertsons to Kroger, are already adopting a variety of digital checkout solutions.

In the U.S., Kroger is leading the charge with digital shelf technology. It installed Kroger Edge, a digital shelf system in partnership with Microsoft, in 200 stores that displays pricing, advertisements and nutritional information. As users walk down the aisles, it also communicates with their smartphones and highlights products that they’ve added to their digital shopping lists in an attempt to provide a customized shopping experience.

Electronic shelf tags offer a number of benefits to retailers, primarily when it comes to flexibility. The shelves can resolve issues with missing tags or prices that haven’t been updated and when it comes to the task of changing price tags, it can save substantial labor power. In lieu of swapping out paper tags or printing new tags, the digital shelf displays can be updated much quicker.

The technology also opens the door to dynamic pricing, which allows for price changes multiple times a day potentially. For example, the price tag could switch depending on demand or availability. Produce and other food items nearing their expiration date could quickly pivot to sell faster. This has been cited by some as a way to help cut down on the amount of food waste produced at supermarkets.

Electronic shelf tags have potential applications for self-checkout as well, allowing customers to avoid waiting in line. Users can scan the shelf tag with their mobile phone, which is also integrated with their preferred payment method. Reducing friction in a self-checkout process is key for consumer adoption, with many customers finding self-checkout services frustrating because they largely are required to take over the entire cashier role. The shelf tags alleviate some of this friction by streamlining the scanning process and preventing the shopper from having to still go through the checkout lane.

Several retailers have already adopted a variety of digital checkout solutions including Albertson’s self-checkout stations and Amazon’s cashierless Amazon Go stores. Giant is also piloting self-checkout technology with its partnership with Silicon Valley’s startup Grabango. The technology uses AI and computer vision to see what customers are picking up as they shop.

Source: grocerydive.com

Walmart is upping its supercenter experience.

The retail giant officially opened its remodeled supercenter in Dallas, Georgia. The store offers an enhanced shopping experience in many departments, expanded assortment and displays.

Along with opening the doors to the supercenter, Walmart debuted its new standalone health clinic format, Walmart Health, which is adjacent to the remodeled store. It offers a full array of health and wellness services, with primary care, lab tests, X-rays, counseling, dental, optical, hearing and community health education.

The remodeled supercenter boasts an enhanced omnichannel shopping experience. Customers who use the chain’s free Pickup service to have online orders delivered to the store can leverage an in-store pickup tower (a tall, vending machine-styled kiosk holding customer orders) using their mobile device. Walmart has also renovated an outdoor pickup area for online grocery orders with a newly-installed canopy.

In-store enhancements include a new pharmacy concept that, based on customer feedback, is designed to simplify and enhance customer service while reducing friction and wait times. In addition, the redesigned vision center features multiple service areas so customers can decide how and where they want to receive service.

The remodeled store also boasts an in-store retail veterinary clinic, Essential PetCare. The clinic provides affordable wellness services for dogs and cats, including routine care, vaccinations, lab work and the treatment of minor illnesses such as ear infections and common skin conditions. (Walmart opened its first in-store Essentials PetCare in Port Richey, Florida, in 2016.).

Other redesigned departments include an upgraded electronics department with interactive displays, a refreshed baby department with strollers at floor level allowing shoppers to compare products more closely, and an expanded hardware department with a greater assortment of industrial and power tools. The remodeled auto center has been made over to include a dedicated lounge area where customers can wait for their cars to be fixed.

Source: chainstoreage.com