Supermarket/Grocery

Cautious consumers kept spending in check in May.     Retail sales in May were essentially unchanged on a seasonally adjusted basis after an upwardly revised gain of 0.6% in April, according to the National Retail Federation. The NRF numbers exclude automobiles, gasoline stations and restaurants.   In May, sales were 5.3% above the year-ago level on an unadjusted basis and increased four percent on a 3-month moving average year-over-year.   

The actions this week by two state attorneys general over the constitutionality of President Trump’s overseas business dealings have very little to do with the P&Ss of retail and restaurant owners. But here’s why it matters to your business and employees:  In the grand scheme of things, their legal maneuvering it is a stinging reminder of the role attorneys general play and how, in other circumstances critical to our business models and industry, they can have a seriously negative impact.

Already under the gun to improve business operations, Whole Foods Markets’ founder and CEO finds himself in a new struggle.  

Walmart’s e-commerce arm is shaking up its private label offerings.   Jet.com will increasingly phase out its assortment of Kirkland Signature branded merchandise — Costco’s private label brand. The move is said to help augment efforts among Walmart’s Sam’s Club chain, which is focused on boosting sales among its own store brand, Member’s Mark, according to Bloomberg.

Eager to strengthen operations across its enterprise, Supervalu is moving to the cloud.   Through a strategic relationship with Sungard Availability Services (Sungard AS), the grocery company is replacing its mainframe technology infrastructure with a new mainframe platform that will offer cloud, back-up, and other solutions and services. The new configuration is designed to improve operations across the independent retailers it supports.   

Consumers are very excited about shopping at German discount grocer Lidl — even though they have never set foot inside one of the company's stores before.    Lidl's upcoming entry into North Carolina, South Carolina, and Virginia could remove $1 billion in local sales in the medium term, according to a report by global consulting firm Oliver Wyman which surveyed consumers in the three states cited above. It reveals that consumers are overwhelmingly excited about trying Lidl.   

The Toronto-based Slate Retail REIT announced it has entered into an agreement to acquire five grocery-anchored centers in Florida and Pennsylvania for a total of $105 million.   “This five-asset portfolio meets all of our acquisition criteria -- attractive returns, markets we like that add scale, pricing well below replacement cost, strong anchors, and in-place rents that are below market,” said Slate CEO Greg Stevenson.  

A German discount grocer has set its sights on becoming the third-largest American food retailer by store count, behind Walmart and Kroger.   

Mills Fleet Farm has ended its hunt for a CEO.   The Midwest retailer announced the appointment of Derick Prelle as president and CEO succeeding Wayne Sales, who has been serving as interim chief since January 2017. Sales was given the position following the departure of Duncan MacNaugton, who left to become president and COO of Family Dollar.   

Lidl makes its long-awaited U.S. debut on June 15, opening the first three of 20 stores it plans to open this summer across Virginia, North Carolina and South Carolina. Mike Paglia, retail director of Kantan Retail, offers the following insights on the grocer's prospects in the United States: