Running with Equity Retail

Redner's transforms store into Wegmans-like experience

2019-05-14T16:10:00.001-04:00

An article in the Reading Eagle last month described how Redner's Markets, the Berks County-based grocery chain known for its no-frills, low-price, warehouse-style grocery stores, is changing its strategy in an attempt to gain customers.

According to reporter Jeff McGaw, the vibe in its Wyomissing, PA store "has become a little less 'canned goods for the big camping trip' and a little more 'brie and fresh grapes for Oscar night.'"

McGaw cites the sushi for sale, the salad bar, and a bar with four craft beer taps and two kombucha tea taps. There are nutritious, chef-inspired grab-and-go foods, large displays of organic and grass-fed meats, and a carving station that serves custom paninis.

The company, which began in 1970, experimented with a warehouse concept - a high-volume, low-margin approach with cement floors and wood palettes stacked with product - at a store in the mid-1980's. Volume tripled, so the whole chain moved to that format.

Fast forward more than 30 years, and "times have changed," according to Redner's COO Gary M. Redner. "And if you're going to go head-to-head with Walmart solely on price, you're not going to win, so you have to have all these value-added items and make people want to come into the store."

Change for Redner's began last year, when the company hired Tim Twiford as its first executive chef. Redner's execs feel that Twiford was key to making the grocery chain competitive in the prepared foods arena.

Now, McGaw describes the Wyomissing experience as entering onto stylish wooden floors and seeing a colorful display of produce while smelling fresh baked goods from the nearby bakery. And it doesn't end there, as there are attractive displays throughout the store.

What about the rest of the chain's stores, of which there are 43?

"Rome wasn't built in a day," said Ryan Redner.

According to consultant Bob Kelley, the goal is to find the new customer without alienating the old customer.

"You go out and work hard in a certain market, learn from that, then you tweak it and roll it out," Kelley said. "Often times do baby steps and work things out that way."

Amazon Go store opens in NYC, accepts cash

2019-05-14T14:53:00.000-04:00

The opening of the Amazon Go store last week in New York City represents the chain's 12th location, and the first to accept cash. The 1,300 square foot store is located in downtown Manhattan, across from One World Trade Center and on the second level of an upscale mall that includes shops, food vendors and restaurants.

Like other Amazon Go outlets, the store has no regular cashier. However, unlike the other 11 stores, customers may pay with cash upon request. Amazon Go is known for its "Just Walk Out" technology, where shoppers use the Amazon Go app to get into the store and automatically pay for the items they remove from the shelves.

Reports say that the cash option was added as Amazon has received criticism for discriminating against underbanked consumers who prefer to pay in cash. A number of cities, including Philadelphia, have enacted bans against cashless stores.

The new Manhattan store carries an assortment of grocery staples, plus ready-to-eat meals and snack options made by Amazon employees as well as local kitchens and bakeries. The store also sells Amazon Meal Kits, which the company said has all the ingredients necessary for making a meal for two in about 30 minutes.

Amazon Go's other stores are in Seattle (four), Chicago (four) and San Francisco (three).

Sprouts plans 13 more stores for the second half of the year

2019-05-12T09:22:00.000-04:00

Sprouts Farmers Markets announced that it plans to open 13 stores in six states during the second half of 2019. Openings are slated for Virginia, Florida, California, Maryland, North Carolina and Arizona.

The company recently opened it's first Pennsylvania store in Philadelphia, and a store is scheduled to open on June 5 in Marlton, which will be Sprouts' first location in New Jersey.

Sprouts said it expects to have 340 stores in 22 states by the end of the year.

Giant opens six stores in four states

2019-05-12T09:13:00.000-04:00

Giant Food Stores announced last month that it opened six new stores in four states. Five of the stores were Shop n' Save stores that Giant converted to Martin's Food Markets, and one was a newly constructed Giant to replace a closed store nearby.

Giant acquired the Shop n' Save locations from Supervalu last November and received approval to close the deal from the FTC in February. The stores are in Pennsylvania, Maryland, Virginia, and West Virginia (2). The Giant location is in Warrington, PA.

Giant, a wholly-owned subsidiary of Ahold Delhaize USA, now operates 178 supermarkets in Pennsylvania, Maryland, Virginia and West Virginia.

The company recently opened its first Giant Heirloom Market in Philadelphia, and has plans to open three more of the urban-format grocery stores in Philadelphia this year.

Walmart wins bid for liquor license in PA

2019-05-12T08:48:00.001-04:00

Walmart submitted the top bid for a restaurant liquor license earlier this year for a store in South Union Township in southwestern Pennsylvania. It's the first liquor license in PA for Walmart, assuming the company files the required application and is awarded the license.

"We want Walmart customers in Fayette County to save money so they can live better," said a Walmart spokesperson, predictably.

According to Shawn Kelly from the Liquor Control Board, if Walmart is granted approval for the license, they will have to turn a portion of their store into a cafe that measures at least 400 square feet and has at least 30 chairs. Walmart would also be limited to selling 192 ounces of beer (approximately two six-packs) per transaction for off-premises consumption.

It is expected that Walmart will apply for a permit to sell up to three liters of wine per retail transaction.

Walmart isn't the first big box store in Pennsylvania to acquire a liquor license. A Target store in Plymouth Township (Montgomery County) has had a restaurant liquor license since last November. Several supermarkets and convenience stores - as well as movie theaters - already own liquor licenses in the state.

Amazon still dominant, but competitors gaining ground

2019-05-06T08:57:00.000-04:00

Nielsen reported recently that Amazon's e-commerce lead is shrinking as major brick-and-mortar retailers like Target, Walmart and Kroger - along with e-grocery company Instacart - have outpaced Amazon in percentage growth of online consumer packaged good (CPG) purchases.

In the two-year period beginning in January 2017, the number of e-commerce buyers of grocery and other CPG products for Amazon rose 29%. However, the growth for Instacart (256%), Walmart (207%), Kroger (172%) and Target (122%) was far greater.

According to Nielsen, Amazon competitors gained ground in the last couple years by rapidly ramping up their online grocery fulfillment capabilities for home delivery and for store pickup.

Despite big gains by competitors, Amazon still enjoys a healthy lead. Its reach among U.S. online purchasers is approximately ten times more than any other retailer.

Lidl applies for $9.5 million in PA redevelopment grants

2019-05-06T08:38:00.000-04:00

It was revealed last month that Lidl is seeking $9.5 million in Pennsylvania redevelopment grants for six stores, three of which are planned for Philadelphia - South Columbus Blvd. in South Philly, Butler Street in Port Richmond, and Roosevelt Blvd. in Northeast Philly.

The three other stores Lidl is seeking grants for are in Dover Borough (York County), Easton (Northampton County) and Ridley Township (Delaware County). The Ridley location opened last year and was Lidl's first store in the state.

In a story published on Philly.com, Lidl Spokesperson Will Harwood explained that Lidl often works with local government agencies and applies for available investment programs when they expand into new markets, including those that require remediation or rehabilitation.

The $9.5 million would come from Pennsylvania's Redevelopment Assistance Capital Program, which is designed to support redevelopment projects that officials deem capable of having a big economic impact. Six million would be for the three Philadelphia sites.

Lyft to expand Grocery Access Program

2019-05-05T18:00:00.000-04:00

Lyft announced recently that is plans to expand its Grocery Access Program, which provides affordable rides to grocery stores for families in underserved areas.

After a successful pilot program in Washington, D.C., the effort will spread to 14 more markets: Atlantic City, NJ; Baltimore; Chicago; Columbus, OH; Detroit; Indianapolis; Los Angeles; Miami; Philadelphia; Phoenix; Portland, OR; Richmond; and Ottowa and Toronto in Canada.

The Grocery Access Program partners with local organizations and nonprofits to provide low-income families and seniors living in food deserts with deeply discounted flat-fare rides to get to and from grocery stores.

Walmart to spend $83 million on PA remodels this year

2019-05-05T17:51:00.000-04:00

Walmart announced last month that it plans to spend approximately $83 million this year to remodel 15 Pennsylvania stores. Stores set for improvements include locations in Harrisburg, Philadelphia and Quakertown, among others.

The $83 million planned for Pennsylvania stores is part of about $11 billion in total capital expenditures planned by the company in fiscal 2020. Nationwide, Walmart plans to add 1,200 autonomous floor scrubbers, 300 autonomous shelf-scanners, 1,200 FAST unloaders and 900 pickup towers to stores around the country. In addition, the company plans to expand online grocery pickup to 1,000 more stores and add another 800 stores.

Artificial Intelligence on display at Walmart lab in Long Island Neighborhood Market

2019-05-05T17:40:00.001-04:00

Walmart opened its new Intelligent Retail Lab last week inside a 50,000 square foot Neighborhood Market grocery store in Levittown, NY, which is on Long Island. According to the company, the store will test new, innovative ideas with the help of artificial intelligence-enabled cameras, interactive displays and a massive data center (in full view of customers).

Plans call for the IRL team to use real-time information to explore efficiencies that will allow associates to know when to restock products, and make sure shopping carts are available and registers are open. In addition, customers can access interactive, educational displays, and find answers to commonly asked questions.

According to a Walmart executive, the IRL is meant to improve the shopping experience for customers, and also improve the employee experience.

"The technology has been built to improve associates' jobs, the make their jobs more interesting, and to help them alleviate some of the mundane tasks. AI can enhance their skillset in a very rapidly changing world."

Weis to spend $109 million on capital expenditures this year

2019-05-05T17:16:00.002-04:00

Weis Markets announced late last month that the company plans to invest $109 million in capital expenditures during 2019. The investments are slated for new stores, remodels, supply chain improvements and technology upgrades.

In the same announcement, a Weis executive said that sales rose to a record $3.5 billion in 2018, with comparable-store sales increasing in 18 of the past 19 quarters.

The Weis executive attributed the company's recent success to technology investments, targeted holiday promotions, price improvements and more efficient store-level inventory management.

Whole Foods and Instacart end partnership, 56 workers let go

2019-03-31T12:05:00.000-04:00

Whole Foods and Instacart announced earlier this month that the two companies have "mutually agreed" to end their delivery services partnership, effective May 15. As a result, 56 Philadelphia-area workers have been laid off.

The end of the Whole Foods - Instacart relationship did not come as a surprise to industry analysts, many of whom predicted the change since Amazon purchased Whole Foods in 2017. Whole Foods currently offers Prime Now, a one- and two-hour delivery service in more than 60 U.S. cities, including Philadelphia.

Instacart remains a strong presence in the Philadelphia market, as it has relationships with Reading Terminal Market, CVS, Aldi, Sprouts Farmers Market, Sam's Club, Wegmans, Acme, and Costco. Overall, the company is in 5,500 cities and delivers from nearly 20,000 stores.

"The U.S. is nearly a $1 trillion grocery market, and last year we saw almost every major grocer in North America bring their delivery business online in a significant way," said Instacart CEO Apoorva Mehta in a statement last year. "We believe we're in the early stages of a massive shift in the way people buy groceries, and we expect that one in five Americans will be shopping for their groceries online in the next five years."

Giant's Warrington, PA store set to open this week

2019-03-31T11:36:00.000-04:00

Giant plans to open a store at Doylestown Pointe Plaza in Warrington, PA this Friday, April 5, one day after it closes for business in nearby Jamison on Thursday, April 4.

The new location will feature a Beer & Wine Eatery and a full-service pharmacy, in addition to Giant's typical supermarket departments. The space was previously occupied by Redner's Market, which closed a year ago.

Grocery store openings increased 30 percent in 2018

2019-03-31T11:21:00.002-04:00

New grocery store openings were up 30% in 2018 as compared to the prior year, according to a report by JLL. More than one-quarter of the new stores were in Florida, California and Texas as a result of expansion by Publix, Sprouts Farmers Market, Aldi, Kroger and H-E-B.

"Grocery is one of the strongest retail sectors, with nearly twice as many new stores opening than closing last year," according to JLL Director of Research James Cook.

Cook also pointed out that shopper habits have shifted to more frequent, shorter trips, and as a result, food retailers are focusing on developing smaller format stores.

"In 2019 we expect to see even more grocery stores rolling out their smaller-format stores as they battle razor-thin margins in prime locations, while still serving evolving consumer needs," said Cook.

Aldi, which accounted for 16% of total new stores by square footage, continues to expand at a rapid pace. And new formats, like Giant's 9,500 square foot Heirloom Market in Philadelphia, were recently introduced.

Equity Retail Brokers enters its 25th year in business

2019-03-02T11:52:00.001-05:00

Twenty-five years ago Equity Retail Brokers was formed. Our founders had a clear and straightforward goal: to create a brokerage firm with a stellar reputation that establishes long-term, productive relationships with clients, staff, and competitors.

All of us at Equity are grateful and humbled to be living the vision of our founders. In fact, it’s better than any of us could have imagined.

The current principals – Founder Ed Ginn, Rob Samtmann, Ken McEvoy, Bart Delfiner, Brian Wherty and David Goodman – extend a special thank you to our current and former agents and staff for their extraordinary effort and hard work. They are the reason we have succeeded through the years. And we are extremely proud of our alumni who have gone on to do great things in the industry.

We also extend our sincere thanks to our clients, many of whom have been with us from the beginning, and even more of whom have become close friends. We value the faith you put into Equity and are grateful for your support.

Here’s to many more years of collaboration and success!

Americans still prefer in-store grocery shopping over buying online

2019-03-02T11:37:00.000-05:00

American consumers still overwhelmingly prefer to buy groceries in stores rather than online, according to a survey sponsored by facilities management company Vixxo. Not surprisingly, the research also found that providing an exceptional in-store experience and high food quality are key drivers for keeping supermarket customers happy and loyal.

About 1,260 U.S. consumers were surveyed about their attitudes and buying preferences, and some of the results are as follows:

87% of consumers prefer to shop in person (including 96% of baby boomers and 81% of millennials)
84% of consumers said that they liked the ability to inspect and select their own products
60% of consumers said that they favor the atmosphere and experience of shopping in brick-and-mortar stores
Approximately 25% of respondents said that they buy prepared food from their grocery stores
14% of consumers said that they shop in only one grocery store
Millennials are three times more likely than any other age group to say that they enjoy the social interactions they experience in grocery stores

Pathmark supermarket to open in Brooklyn... really

2019-03-02T11:27:00.001-05:00

Grocery retail cooperative Allegiance Retail Services announced that it plans to open a 49,000 square foot Pathmark supermarket - at the site of a former Pathmark store in Brooklyn, NY - later this month or next. The New Jersey-based cooperative purchased the intellectual property of the Pathmark name and associated marks last year.

Pathmark was a mainstay in the metro New York market for decades until parent company A&P filed for bankruptcy in 2015.

The new store's owner is PSK Supermarkets, which operates about a dozen stores in the New York market, mostly under the Foodtown banner.

Plans submitted for first Delaware Wegmans

2019-03-02T11:11:00.003-05:00

The state of Delaware is slated to get its first Wegmans supermarket. According to WDEL.com and Pettinaro Development, the store would be located at Barley Mill Plaza in Greenville if approved by New Castle County Council.

If approved, Wegmans would be an integral part of a multi-use plan that includes office, retail, apartments and townhouses.

Study finds that dollar store produce as good as supermarket produce

2019-03-02T11:03:00.000-05:00

A study conducted by the University of Nevada Las Vegas (UNLV) concluded that the quality of fruit and vegetables at dollar stores is as good as the produce at conventional grocery stores. For the study, fruit and veggies at 14 dollar stores were compared in terms of color, cleanliness, freshness and firmness with produce at 40 traditional food retailers in the Las Vegas metro area.

"The dollar store fruits may be ripe - and you'll have to eat it soon - but it's completely good quality," according to UNLV Professor Courtney Coughenour.

The study also found that produce costs much less at dollar stores, although the variety offered at dollar stores was not as good. None of the dollar stores carried pears, for instance.

UNLV is hopeful that its findings will aid public health efforts to boost accessibility to affordable, nutritious food, since 17.3 million people in the U.S. live in "food deserts," which are defined as low income areas that are more than one mile from grocery stores.

Dollar stores continue to expand throughout the U.S., and the major chains continue to ramp up their selection of produce and refrigerated space.

Amazon reportedly to launch supermarket business; Philly in the mix

2019-03-02T10:45:00.001-05:00

Amazon plans to launch a new retail grocery business, according to a report in The Wall Street Journal. The report stated that Amazon already plans to open a grocery store in Los Angeles - possibly before the end of this year - and has signed leases to open two more in early 2020.

In addition, the company is in discussions to open grocery stores at shopping centers in Philadelphia, San Francisco, Seattle, Chicago and Washington, D.C. The Journal also reports that Amazon is considering potential acquisitions of existing small-to-medium size grocery chains.

"I would speculate this is a traditional grocery play that leverages the best of Amazon technology and shopper insight," said Danny Silverman, CMO at Edge by Ascential. "As Amazon continues to look for ways to capture the last mile through physical retail, they need to test and find propositions that speak to different shopper segments. Whole Foods is a relatively narrow proposition, (Amazon) Go is small footprint and (Amazon) Fresh is delivery-only. A more traditional grocery play would cover critical gaps in their current model."

Saladworks to expand presence at Brown's Wakefern supermarkets

2019-02-15T09:26:00.000-05:00

Saladworks opened its first-ever location in a supermarket about a year ago, in a Philadelphia ShopRite owned by Jeff Brown. And now, after deeming the pilot a success, it plans to expand its presence at Brown-owned Wakefern Food Corp. locations in Greater Philadelphia.

So far, Saladworks restaurants are planned for Brown's ShopRite and Fresh Grocer stores in Philadelphia and Wyncote, PA, respectively. Another three or four Saladworks locations could follow at Brown's supermarkets within the next year, according to Saladworks CEO Patrick Sugrue.

"We're finding that salad bars are falling out of favor, they're not profitable for grocery stores, they have a lot of waste and they take up a lot of space," explained Sugrue. "In the same space or less than a money-losing salad buffet, we can place a full Saladworks restaurant and deliver our core menu to consumers - made exactly the way they want."

Giant opens 38,000 SF e-commerce hub in Lancaster, PA

2019-02-15T09:02:00.000-05:00

Giant held a grand opening earlier this week for its 38,000 square foot Giant Direct hub, built on the site of a closed Giant supermarket in Lancaster, PA. The facility serves as a curbside pickup site and grocery delivery center. It's the fifth site of its kind for Giant.

According to the company, customers can drive up and have their orders - which are made through the Peapod online service and app, or the Giant website - brought to their cars. There is also a walk-up vestibule with lockers for placing and picking up online grocery orders. Items are taken from rows of bar coded shelves, and refrigerated and frozen cases in the warehouse.

Price comparison finds Whole Foods and Acme as most expensive in Greater Philly

2019-02-14T09:36:00.001-05:00

A December story on Philly.com reported the findings of a Consumers' Checkbook study that compared prices of 19 grocery stores in the region. The lowest prices? Walmart. The highest? Whole Foods.

"When Amazon purchased Whole Foods last year, many consumers were excited by the prospect of paying Amazon-like prices for Whole Foods-quality products," said Checkbook Executive Editor Kevin Brasler. "But we're not there quite yet."

Checkbook staff members checked prices on 154 common items, and they surveyed thousands of consumers to assess the quality of the products and services offered at the stores. Although Whole Foods scored poorly on price, it was one of the highest rated grocers.

Unfortunately for Acme, it was not only one of the highest-priced grocery chains, but it was also one of the lowest rated. Only Whole Foods was more expensive.

The highest rated store in the region was Wegmans, and their prices came in at three percent below average.

Trader Joe's to end grocery delivery in Manhattan

2019-02-12T15:35:00.001-05:00

Trader Joe's announced that effective March 1, the company will cease grocery delivery services in Manhattan stores. According to Business Insider, an email statement from Trader Joe's cited cost and the availability of other delivery services in the area.

Unlike most leading grocers, Trader Joe's typically does not provide online grocery shopping, nor does it offer delivery services. However, third-party services like Postmates and Envoy deliver from Trader Joe's in some states.

Despite the increasing rollout of online grocery shopping, delivery and pickup services, recent studies show that most consumers prefer to shop for groceries in stores. Still, U.S. consumer spending online for groceries is expected to rise about 15% next year. If so, the overall online share of grocery sales will reach 6.3%.

Lidl planning to take part of vacant Acme in Lansdale, PA

2019-02-12T15:25:00.000-05:00

Lidl presented plans to Towamencin Township last month to take over about half of the former Lansdale, PA Acme that closed last summer. Acme occupied about 60,000 square feet.

"We're definitely looking at opening this year, this calendar year. That's the hope," said Sam Kachidza, Real Estate Manager of Acquisitions for Lidl U.S.

The site is just two miles from two existing full-service supermarkets - Giant and ShopRite, and two miles from Ralph's Corner Shopping Center, where Aldi is under construction.

So far Lidl has one store open in Pennsylvania - on MacDade Boulevard in Folsom, and the company is actively looking for more. Lidl stores in Lower Providence Township and Royersford are also planned.