Instacart is planning to go public before 2022 ends, The Wall Street Journal reported last week, citing unnamed sources familiar with the matter. In a separate, yet also eyebrow-raising move, Instacart is expanding beyond food, adding fashion to its repertoire with limited edition clothing and accessories — and yes, the items feature carrot icons.

The Wall Street Journal noted that many bankers advising companies on IPOs are expecting large, unprofitable firms to wait to enter the public markets “until volatility subsides and other recent IPO stocks recover.” 

KPMG found consumer and retail deals fell more than 30% in the first quarter compared to the prior period, CNBC reported, and Retail Dive noted some planned IPOs or other transactions have stalled. Is Instacart seeing this? 

Industry experts have already expressed wariness around Instacart’s plans to go public, especially given the current market conditions. 

“It’s going to end up leaving a lot of money on the table,” David Ritter, managing director of Alvarez & Marsal Consumer and Retail Group, said on Omni Talk’s podcast in mid-May after Instacart said it filed a confidential draft registration statement for a potential IPO. Ritter called it a “now or never” opportunity for Instacart, noting it has struggled with profitability and that driver and fuel costs are going up. 

After posting a $39 billion valuation last year, Instacart slashed its valuation by nearly 40%, to around $24 billion, in March. In July, Capital Group cut its valuation of Instacart, Bloomberg reported. An anonymous source told The Wall Street Journal that Instacart was profitable for the second quarter of this year. 

In a different perplexing move, Instacart has a “limited edition capsule collection.” In collaboration with streetwear fashion designer Anwar Carrots (get it?), the collection features four products: a tote bag, water bottle, long sleeve T-shirt and bucket hat. The items become available Friday exclusively on NTWRK, a livestream shopping platform for young consumers. Is Instacart seeking walking advertising from Gen Zers and millennials?

“So what’s with brands that never sold clothing before suddenly releasing entire collections?” Adweek queried in its write-up on Instacart’s streetwear collaboration.

Another question: How many people really want to wear Instacart’s logo and the carrot image?

In case you missed it

H-E-B is testing a self checkout machine that scans the whole basket

Details on how the system works are scant at this point, but according to a shopper’s account noted by San Antonio news site MySA.com, customers run their basket of products through the “Fast Scan” device, and it will log all of their selections before allowing them to pay. An image on the site shows a large structure that resembles an airport security gate.

H-E-B confirmed to the news site that it is testing the Fast Scan technology with employees at the Schertz, Texas, store where it was spotted, but did not note any expansion plans. In 2013, the grocer trialed a version of Fast Scan in which shoppers placed all their products on a conveyor belt — Meijer tested a similar technology around that time — and in 2018 began rolling out a scan-and-pay program, H-E-B Go.

COVID-19 continues to have a “serious impact” on frontline workers, UFCW study notes

This week, the United Food and Commercial Workers International Union (UFCW) and the University of Nebraska Medical Center released the results of a yearlong study that outlines the impact of COVID-19 on frontline workers and indicates the virus is still having a sizable impact on them.

Among the 20,000 UFCW members surveyed as part of the report, 59% of those who have had COVID-19 said they believed they contracted it in the workplace, and 6% said they required hospitalization. Four percent of workers who contracted the virus say they’ve been unable to return to work, and half of all respondents reported in May that they still felt “deeply impacted” by the virus.

In its announcement, the UFCW called for the expansion of paid sick leave across industries as well as a nationwide infectious disease worker protection standard under the Occupational Safety and Health Administration (OSHA). 

A new pickup-only startup takes root in Oklahoma

A few pickup-only grocers have recently launched in places like Chicago and South Carolina, looking to capitalize on high demand for the e-commerce service. Add to that list a new entrant that’s under construction in Oklahoma City.

Jack Be will provide quick pickup service for shoppers as well as delivery through third-party providers like DoorDash, according to coverage from local news site OKCTalk.com. Shoppers who pull up to the 17,000-square-foot store can also order products on-demand after scanning a QR code — an approach similar to one that startup Opie is taking.

The company hasn’t said when its first location will open, but plans to eventually launch multiple spots around Oklahoma City.

Number of the week: 300

That’s the number of markets Schwan’s Home Delivery aims to release its new model to after a major rebranding effort, according to Modern Retail.

The 70-year-old grocery delivery company will now be known as Yelloh, reflecting its signature yellow trucks. Instead of calling in orders or waiting for a delivery truck to drive by — the traditional ordering methods for Schwan’s customers — users can get text alerts when a truck is going to be in their neighborhood.

The upgrades have already been implemented to 50 markets, according to chief strategy officer Kevin Bouym. 

What’s ahead

Earnings galore

Three companies — Blue Apron, Grocery Outlet and Ahold Delhaize — will announce their second quarter earnings next week. Blue Apron will be announced Monday morning, Grocery Outlet on Tuesday after the markets close and Ahold Delhaize early on Wednesday. 

Trader Joe’s second union vote

Trader Joe’s saw the formation of its first employee union last week among workers at a store in Hadley, Massachusetts. Next Thursday and Friday, Trader Joe’s employees at a store in Minneapolis will vote on whether to unionize.

July inflation numbers

Industry experts have been keeping a close eye on the continued rise of the Consumer Price Index (CPI), specifically for food-at-home prices. The July CPI results come out on Wednesday and are expected be high once again.

Aldi wedding

Engaged and looking for a wedding venue? Couples can apply to be wed in the aisles of the Aldi Insights Center in Batavia, Illinois, on Nov. 9, with an Aldi employee officiant, branded cake, storefront photoshoot, and overall Aldi theme reception for up to 50 guests, completely free of charge. And, as part of the grocery chain’s gift to the newlyweds, they will receive free groceries for one year. The winner will be announced at the end of August, according to the grocer’s announcement.