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.
Kroger’s ill-fated drive to absorb Albertsons may have degenerated into an ugly legal brawl between the retailers, but the market dynamics that convinced them to link paths two years ago remain as potent as ever.
Grocers still face intense pressure from mass retailers like Walmart, Costco and Amazon, and scale plays just as significant a role in helping supermarket operators compete today as it did before. Add to that the fact that the incoming Trump administration seems inclined to be significantly more open to M&A than the current White House, and the stars seem aligned for significant disruption in the grocery industry in 2025 and beyond.
One way this could happen would be a decision by Albertsons to seek another partner to help it chart its course in the fast-changing grocery sector. After all, the company noted this week that the termination of its merger with Kroger “removes contractual constraints on Albertsons’ ability to pursue other strategic opportunities.”
In addition, analysts have said that Kroger would benefit by adding to its heft — even though the company’s CEO declared just over a week ago that it does not need to combine with another grocer to grow. Could that mean that Kroger might look for another grocery chain to purchase? It could look to the Northeast — the one region of the U.S. where it currently doesn’t operate any stores. Perhaps Ahold Delhaize will swoop in to build its presence in the U.S. before Kroger unveils its next move.
A tantalizing array of possibilities lies ahead for the grocery industry as Kroger and Albertsons unwind their would-be marriage. Hold onto your seat!
In case you missed it
Meijer triples home delivery radius
On Monday, the Midwestern grocer announced it has expanded the e-commerce service to households within a 60-minute radius of its stores, up from 20 minutes — making delivery from Meijer an option for 4 million more households. All Meijer grocery stores and supercenters offer delivery services.
To kick off the expanded service, Meijer is offering home delivery for free to households within the extended delivery zone through Feb. 1, 2025. The offer applies to pet and beauty product orders of at least $35 or general merchandise orders of $50 or more, , according to the announcement.
Stop & Shop to roll out coupon kiosks chainwide
The Northeastern grocer will bring the stations, which let people activate weekly circular digital coupons and personalized offers, to all of its stores by the end of January 2025, according to a Wednesday announcement. The kiosks, known as Savings Stations, also let shoppers print coupons and access recipes.
Stop & Shop first introduced the kiosks at its Rhode Island locations earlier this year, when it also reduced regular prices on thousands of private and national brand items at stores in the state.
Amazon brings rapid delivery to India
The e-commerce company will begin trialing 15-minute delivery in the South Asian country, Reuters reported Tuesday. Amazon’s strategy in bringing the service to India involves offering “the largest selection at [the] fastest speeds and greatest value to customers in every single pin-code across the country,” Samir Kumar, Amazon India’s country manager, said in a statement to the news outlet.
Impulse find
Publix’s new store in Hollywood, Florida, is rocking the boat.
The nearly 30,000-square-foot location has exactly what consumers expect from a traditional Publix store — grocery, dairy, frozen food, seafood, meat and fresh produce departments. But to take full advantage of its intracostal waterside real estate, the new Hollywood Publix store also has a dock where customers can park their boats and enter the store to shop. The location offers a seating area inside and benches along the main dock so shoppers can “enjoy their Publix sub” and other grab-and-go offers, the grocer noted in an emailed announcement.
Now, the Florida grocer’s nautical customers can live out their “Below Deck” reality television dreams.
