The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
When Kroger and Albertsons announced their blockbuster plan to combine nearly two years ago, the supermarket giants described the proposed deal as a fusion of “two complementary organizations.” But while the arrangement might appear to be a merger of equals, it has always been evident that Kroger would in essence take over Albertsons if the companies complete their deal.
Kroger owns a little over half of the approximately 5,000 stores it and Albertsons currently operate between them — and the banners Kroger brings to the table would account for 60% of the supermarkets the companies would own if they combined.
In addition, Albertsons has not held an earnings call since the companies struck their deal even as Kroger’s executive team has continued to hold quarterly sessions with analysts and investors. And Albertsons CEO Vivek Sankaran does not have a retention agreement with the company — a sign that he will likely leave if the grocers combine.
The list Kroger and Albertsons published this week of the stores they intend to divest to help overcome opposition to their tie-up underscores Kroger’s role as Albertsons’ would-be acquirer. More than 80% of the almost 600 supermarkets the retailers plan to sell should they be allowed to combine are owned by Albertsons. Notably, the high-profile Safeway banner — which Albertsons acquired nearly a decade ago to form the current version of the grocery company — alone accounts for almost half of the stores included in the divestiture plan.
The future of Kroger and Albertsons’ plans to unite might be very much in question — but if the grocers do combine, there’s little doubt about which one will be in control.
In case you missed it
Lidl bakes up a new assortment
Lidl US unveiled Wednesday additions to its bakery, including New York-style bagels, glazed cake donuts, cinnamon rolls and muffins, at all of its stores. True to its focus on low prices, the New York-style bagels and donuts are priced at around 79 cents to 99 cents and the muffins at $1.19.
“These new offerings are part of Lidl US’ strategic pivot,” said Tod Seiling, vice president of fresh at Lidl US. Recently, Lidl US also upgraded its meat and poultry departments.
Heritage Grocers Group expands loyalty program
Following the launch of its loyalty program in February at Cardenas Markets, the Hispanic food retailer announced Wednesday the chainwide rollout of the program to all 29 El Rancho Supermercado locations across Texas and Kansas. Customers who sign up can clip digital coupons, receive one point for every $1 spent, get exclusive weekly offers, access a weekly digital deal and access seasonal discounts.
Creating a global food retail technology company
Upshop, a provider of inventory management and fresh operations tech, and Invafresh, a cloud-based platform for merchandising and replenishment processes for fresh foods, announced their merger Tuesday. The united entity, which will keep the name Upshop and serve more than 400 retailers and operate in over 50,000 stores globally, will focus on addressing availability, affordability and waste challenges within the food sector, the companies said.
Their combination comes as grocers prepare for FSMA204, a major FDA compliance requirement pushing for enhanced data traceability capabilities, the announcement said, also noting that Upshop will launch a solution that joins together both companies’ food safety product suites at the end of July.
Number of the week: 3%
That's the rate at which consumer prices increased in June — the slowest rate of overall inflation in the U.S. since March 2021 — the Bureau of Labor Statistics reported Thursday. Prices were off by 0.1% month-to-month in June, their first monthly decline since May 2020
What’s ahead
Latest retail sales data
The U.S. Census Bureau will release the monthly retail sales figures for June on Tuesday.
Impulse find
Dolly’s in the kitchen with Dollar General
A new multi-category kitchen and housewares collection from Dolly Parton is coming to Dollar General, the discounter announced Tuesday.
The products from this exclusive collection are inspired by the singer’s childhood in the Smoky Mountains and “depict key moments from her early life,” according to the announcement. There are also nods to Dolly’s iconic songs, such as a mug that reads “Cup of Ambition” and sponges with the lyrics “Spread your wings and let the magic happen.” Plenty of the items are also shaped as or decorated with butterflies, which Dolly has an affinity to (as well as a few tattoos of).
All Dollar General locations will have the Dolly Parton Kitchen and Housewares Collection available for purchase by mid-July, and all 50 products will be priced at no more than $10, according to the retailer.
