It’s notable that the three e-commerce fulfillment “spokes” Kroger is closing in May — one facility is in South Florida, the others in San Antonio and Austin, Texas — are in markets where the grocery giant faces steep competition from top-performing regional rivals.

Publix has an entrenched presence in Florida while H-E-B is a beloved Texas chain with a variety of store formats in San Antonio and Austin as well as other major metropolitan areas in the state. 

It also doesn’t seem like a coincidence that the closing facilities were all in markets where Kroger doesn’t currently have brick-and-mortar stores. While other retailers like Walmart have made their stores a key part of their e-commerce fulfillment, Kroger went out on a limb trying to rely solely on e-commerce to serve those markets.

Given these two factors, it’s hard to imagine that Kroger’s efforts to establish a new presence primarily through e-commerce could have ever worked. 

If Kroger — a national grocery operator with abundant resources to innovate — struggled to appeal to customers in those markets, other grocers should be wary of plopping e-commerce facilities down in undeveloped territories to stake out new consumers — especially in areas with esteemed regional and local grocers.

In case you missed it

BJ’s continues to grow in the South and Midwest

The fast-growing club retailer outlined five locations in the South and Midwest where it plans to open club stores in the coming months. It’s planning locations in Palm Coast and West Palm Beach, Florida, marking the 38th and 39th stores in the Sunshine State. BJ’s also aims to open its second location in South Carolina, in Myrtle Beach, as well as its second location in Indiana in the city of Carmel.

In Tennessee, BJ’s will open its fourth location in the state when it opens in Maryville, located in the Knoxville market. All told, the club retailer plans to open 12 club stores this year and 15 gas stations

Wegmans celebrating solar eclipse with store closures and cocktails

Wegmans is ready for next month’s solar eclipse. The retailer announced this week that it plans to briefly close 48 stores that sit in the path of totality for the April 8 event. Stores will close from 3 p.m. to 3:30 p.m., allowing employees time to view the eclipse.

Although it’s temporarily halting business, Wegmans is making sure to capitalize on the business opportunity the eclipse offers. On its website, the grocer notes it has safety glasses for viewing and grab-and-go foods. It also has developed a “Total Eclipse Cocktail” recipe, which combines bourbon, lemon juice and Malbec wine, and a special food menu for the event.

Schnuck Markets introduces diverse-owned business accelerator

Schnuck Markets has launched a program aimed at helping suppliers that are at least 51% owned by minorities, military veterans and members of historically underrepresented communities get on store shelves. Businesses selected to participate will get to trial their product in select Schnucks stores, receive $5,000 in equity-free funding and attend business development classes at the grocer’s St. Louis headquarters.

Applicants to Schnucks’ Springboard program, which is run in partnership with the Mid-States Minority Supplier Development Council, have until May 12 to apply.

Number of the week: 21%

That is how much Trader Joe’s increased its cost for a banana, marking the first time the grocer has upped the produce’s price in more than 20 years. Nineteen cent bananas were a Trader Joe’s trademark, signaling its low prices to shoppers. Now, an individual banana costs 23 cents. A spokesperson from the grocer noted the company “reached a point where this change is necessary.”

What’s ahead

Latest jobs report

The U.S. Bureau of Labor Statistics is set to release its latest employment report next Friday, giving new insight into the grocery industry workforce during March

Impulse find

H-E-B’s most dedicated employee

A seven-second TikTok has gained more than 3.2 million likes for simply showing Kaylee Baker getting ready for a shift at H-E-B. Baker has been working for the Texas grocer since age 16, according to the video.

Seems normal, right? 

The catch — the now 23-year-old has a separate full-time job, yet still insists on working weekends at the same H-E-B. 

“[H]ow am I just supposed to leave the people I’ve been working with for the past SEVEN YEARS??” Baker wrote in the video along with the caption, “[L]iterally my second family at this point.”

@kayleebayker literally my second family at this point #work #texas #heb ♬ original sound - Bella ࿔