Supermarket/Grocery

The retail sector is used to change, but every so often an event occurs that shakes the industry to its core. Amazon's acquisition of Whole Foods is one of those.   On the surface, the purchase -- which comes with a $13.7 billion price tag -- is surprising. However, there is an inherent logic in the move which, in our view, brings benefits to both businesses.  

Shoppers in Denver are getting their first taste of Amazon Prime Now.   The service, which is exclusive to the online giant’s Prime members, provides free two-hour delivery on tens of thousands of items, from household and daily essentials to electronics, games and outdoor supplies. Area Prime members can order through Amazon’s Prime Now app, available on iOS and Android devices, Amazon’s web site, or “speak” orders to their Alexa device.  

Website accessibility is shaping up as the next big challenge for retailers with regards to ADA compliance.    A Miami federal judge has ruled that Winn-Dixie violated the Americans with Disabilities Act by not making its website, which was recently updated, accessible to blind and visually impaired users, the Miami Herald reported. The Jacksonville, Florida-based supermarket chain has set aside $250,000 to revamp its online site and was ordered to pay the plaintiff’s legal fees, according to the report.  

The Kroger Co. lowered its earnings guidance amid a decline in Q1 same-store sales as price competition in the supermarket industry intensifies.    Sales rose 4.9% to a better-than-expected $36.3 billion for the quarter ended May 20, up from $34.6 billion last year. Same-store sales excluding fuel declined 0.2%, the second consecutive quarter of decline.  

German discount grocery retailer Lidl made its hotly-awaited debut in the United States on Thursday, opening the first nine of 20 locations it plan to open over the summer.  The chain expects to have 100 stores up and running within a year.   

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.