Industry Update: Grocery, Supermarket & Convenience Stores – March 2015
Ahold USA announced that Tonya Herring has been appointed Senior VP Non-Perishable Merchandising. The company also announced that it will eliminate approximately 120 jobs in an internal restructuring effort at its offices in Carlisle, PA, and Quincy, MA.
The merged Albertsons-Safeway organization announced that Justin Dye has been appointed Chief Administrative Officer. The company also announced that Susan Morris has been named President of the Denver Division.
Hannaford Supermarkets announced that Brad Wise will retire from his role as President on June 30 and will be replaced by Michael Vail.
Kroger Co.’s Senior VP Human Resources, Kathleen Barclay will retire in fall 2015. Upon her retirement, Timothy Massa the current Group VP of Human Resources and Labor Relations will replace her.
The National Grocers Association (NGA) announced that it has hired Matthew Foley to be its new Senior Manager Government Relations.
Safeway’s Senior VP of Loyalty, Keith Colbourn, is leaving the company for Coupons.com.
SpartanNash Co. announced that Dave Staples, Exec VP and CFO, has been appointed COO, and Derek Jones, Executive VP Food Distribution, has been promoted to President Wholesale and Distribution Operations. Staples will continue to serve as CFO until his replacement is hired.
The President of Stop & Shop’s New England Division, Joe Kelley, departed the company. Don Sussman, President of Stop & Shop New York Metro, will lead the division on an interim basis.
Costco Wholesale Corp. reached a deal with Visa, and Citigroup will become the exclusive issuer of the co-branded credit cards, effective April 1, 2016.
Loblaw announced that it plans to invest more than $1 billion this year on new stores, e-commerce expansion and supply chain improvements.
Lowes Foods is planning an aggressive expansion over the next four years. “The grocer will enter the Greenville, SC, area in 2016 and three other geographic markets by 2019. The plan includes rebranding 2.5 million-sq. ft. of existing store space and building as much as 1 to 1.5 million-sq. ft. in new space for potentially more than 30 stores over the next four years.”
Natural Grocers by Vitamin Cottage announced that it is investigating a possible data breach that may have put “limited customer payment data” at risk.
Ahold USA reported net sales of $26 billion for fiscal 2014.
Delhaize America reported net sales of $17.7 billion for fiscal 2014.
The Fresh Market reported net sales of $1.75 billion for fiscal 2014, a 16% increase compared to fiscal 2013.
Kroger reported net sales of $108.5 billion for fiscal 2014, an increase of 10.3%. This marks the “45th straight quarter of identical stores growth – more than 11 years of increasing sales at stores open at least 15 months.”
Publix reported net sales of $30.6 billion for fiscal year 2014, a 5.7% increase from last year. The company reported that it plans to invest “$1.3 billion in new store construction, remodeling and technology in 2015. It also plans to continue investing in real estate, buying up the shopping centers its stores anchor.” It has also become the first company headquartered in Tampa Bay to top $30 billion in annual sales.
Roundy’s reported net sales of $3.86 billion for fiscal 2014.
reported net sales of $2.97 billion for fiscal 2014, a 22% increase compared to reported net sales in 2013.
TravelCenters of America LLC reported net sales of $7.78 billion for fiscal 2014.
Mergers and Acquisitions
Meijer sold five stand-alone convenience stores and gas stations to CITGO Petroleum Corp.
Lykins Energy Solutions purchased Martin Oil Co. Inc. for an undisclosed sum.
TravelCenters of America LLC, announced that it has acquired 26 gasoline and convenience stores; 18 in Minnesota and 6 in Kentucky, in 3 unrelated transactions.
99 Ranch Market plans to open a Folsom, CA store in fall 2015.
Aldi will open a store in Louisville, KY, and Sterling, WV.
Bi-Lo Holdings announced that it will close 6 stores before April 23. The stores closing include Winn-Dixie stores in: Tampa, FL; Bradenton, FL; and Brunswick, GA, and Bi-Lo stores in: Savannah, GA; Garden City, GA; and Easley, SC.
Food Lion announced that it plans to remodel all of its Raleigh, NC, stores this year.
The Fresh Market opened a store in Creve Couer, MO. The company announced that it plans to close all of its stores in California by March 31.
Fresh Thyme Farmers Market will be opening a location in Dayton, OH on March 25.
Giant Eagle announced that it will close all 8 Good Cents locations. The closures are set for March 26 and will take the chain out of the discount grocery business.
Harris Teeter will open a store in Fort Mill, SC.
Heinen’s opened a location in downtown Cleveland, OH, in the Cleveland Trust Building.
Lucky’s Market opened a store in Ann Arbor, MI.
Natural Grocers by Vitamin Cottage will open a store in Wichita, KS.
New Seasons Market opened its first store in San Jose, CA.
Publix opened a 49,000-sq-ft store at 1735 Heckle Blvd, Charlotte, NC.
QuikTrip will open a store in Wichita, KS.
Sheetz opened a new concept in Morgantown, WV on March 3. This is the first location featuring the fuel-free concept with a complete focus on the food and beverage offerings. It is triple the size of a usual Sheetz location at 15,000 sq.-ft. and is located at 2151 University Ave, Ste 220. The company is also opening new stores at 5230 Beauchamp Lane in Winston-Salem and 2350 South Main Street in Lexington, NC.
SpartanNash plans to remodel and rebanner 9 stores in Nebraska in fiscal 2015. In addition, 10 stores will be closed.
Sprouts Farmers Market Inc. plans to open 23 stores in 2015 and is looking to expand into Florida and North Carolina.
Trader Joe’s opened a store in Fort Collins, CO; and will open a store in Dr. Phillips, Ft. Lauderdale, and Davie, FL; and Tulsa, OK.
Walmart opened a 41,000 sq-ft Walmart Neighborhood Market at 24919 Westheimer Pkw in Cinco Ranch, TX, it is also looking to open a 1 million-sq. ft. distribution center in Seattle, WA.
Wawa plans to open 50 more Florida stores in the next two years. The stores are in addition to the 100 to 150 new South Florida stores the company plans to open in the next decade.
Whole Foods Market opened a store in Olathe, KS; West Palm Beach, FL; Chicago, IL; and will open a location in Los Angeles, CA; Bridgewater, NJ; and Dublin, CA.
Zanotto’s Family Market will open a location in Sunnyvale, CA, on April 12.