“When all these price increases are woven into the system and ultimately passed along, it’s going to have a profound effect on a lot of Americans. You can start at the farm, move to the manufacturing plants and ultimately to the stores’ shelves – everything is going to cost more. A lot more. Even basic supply chain issues from finding enough labor to work in plants and warehouses to the shrinking number of truck drivers will play a role in driving up prices.”
Believe it or not, those words were uttered a year ago by a senior VP from one of the country’s leading CPG suppliers.
Not only were his predictions accurate, but inflation and supply chain challenges have become even worse than he thought. However, despite continued spiraling inflation (a scary 11.9 percent in May) and even more problems with the nation’s supply chains, retailers continued to produce robust sales propelled almost entirely by price increases.
Some other trends that began when COVID first impacted grocery shelves in March 2020 have continued or increased during the last 12 months. Eating at home remained strong as some schools hadn’t returned fully to in-person learning, and restaurants, while performing better than in 2020 and early 2021, were still not back to 2019 levels. Additionally, retailers continued to post solid online sales (particularly curbside pickup) while also seeing their customers make more in-store visits than a year ago.
Despite the surprisingly strong results most retailers achieved during the past 12 months, the supply chain and inflation challenges are becoming of increasingly worrisome to merchants in all trade channels.
Unlike the beginning of the pandemic when certain products/categories simply disappeared from the shelves or other items were only available in limited varieties, now more products across the spectrum of the entire store are not available. If service levels were in the low 80 percent range during the early period of the pandemic, they have now dipped to the mid-60s to low 70s percent range on average.
And price increases have been coming at an unprecedented rate – one reginal chain executive said his company has processed nearly 11,000 price changes since the beginning of 2022. Moreover, all segments of the supply chain have been adversely impacted by labor shortages which triggered a host of other problems. And COVID would still remain a factor in the past 12 months as the delta and omicron variants contributed to a spike in positive cases and a return to caution for many Americans.
Which brings us to today, when retailers live in a world where unit sales are down (from a year ago) but price increases of 15-35 percent from a year ago have inflated top line revenue. And even though some parts of the supply chain have improved in areas such as commodity and raw materials availability, the system remains highly dysfunctional and unpredictable.
Even many of those who predicted six months ago that inflation would abate and distribution patterns would return to more normal levels by the end of 2022 no longer see that as a reality. And what’s worse is that over the past two months retailers are seeing the first signs that inflation might not be their friend for very much longer as consumers have begun trading down and a potentially worse economic environment or even a recession is possible.
We’ll be charting that course in the 2023 market study; this year’s differential when comparing retailers against each other was largely determined by who maintained better in-stock conditions. That was an overall industry challenge, but one which some retailers executed better than others.
So, as I’ve done for the previous 44 years, here’s my take on some of the highest sales producers in the 70-county marketing area that Food Trade News covers.
ShopRite – At store level, a solid but not spectacular year for the perennial New York Metro and Delaware Valley market leader. In-stock conditions when compared to the entire field were average (in the 70-75 percent range). During the past year, new ShopRites opened in Wayne, NJ, Poughkeepsie, NY and Matamoras, PA (a replacement store) and future new ShopRites are planned for Jersey City, NJ; Sussex, NJ, Greenburgh, NY; Huntington, NY; Mount Kisco, NY; Clementon, NJ; Glassboro, NJ; Woolwich, NJ; and Drexel Hill, PA – the latter four stores being replacement units. More news was actually made inside sister organization Wakefern. In December 2021, the grocery co-op’s largest member, Saker, acquired seven Jersey Shore ShopRites from the Perlmutter family (Perlmart). Then, earlier this month it was revealed that veteran president and COO Joe Sheridan would be retiring in 15 months. Shortly thereafter, EVP Chris Lane, who some trade observers believed would become Sheridan’s successor, abruptly resigned, leaving a potential hole at the top of the organizational chart. A search has begun to find Sheridan’s successor. That alone should be an interesting process.
Stop & Shop (New York Metro Div.) – Not a good year for the largest retail brand in the Ahold Delhaize USA (ADUSA) stable. Stoppie simply couldn’t maintain the momentum it achieved during the first year of the pandemic. The major reason was some of the poorest in-stock conditions of all of the retailers we measured. And the reason behind that (along with the supply chain challenges that all merchants faced) were the difficulties in transitioning its distribution and logistics from a third-party (C&S) into a its own vertically-integrated platform. The dysfunction manifested itself into a much higher percentages of out-of-stocks than the industry average and also cost ADUSA supply chain president Chris Lewis his job. There’s potentially better news ahead with the parent company planning to invest $140 million in cap-ex for Stoppie’s New York Metro stores. And don’t discount president Gordon Reid, one of the best executives in the business.
The Giant Company – What was a good year might have been better if, again, TGC could have kept its store better stocked. The Carlisle, PA-based ADUSA brand opened four new stores over the past 12 months including two new Heirloom Markets in Philadelphia where the non-union merchant has designs on significant growth over the next few years. By early next month, TGC will have opened two new supermarkets on N. Broad Street in Philadelphia and in nearby Richboro, PA. The high-volume retailer also has another Heirloom Market and Giant supermarket slated to open in Philly in the next two years. That’s an ambitious plan for a company that’s continued to grow annually since the early 1980s.
Walmart – Once again, the Behemoth did little to expand its brick-and-mortar presence in the market (it opened one SuperCenter in Yaphank, NY). However, comp store sales were good despite slightly worse than industry average in-stock store conditions (you’d think that with that much supplier clout, Walmart would be able to keep its shelves better stocked). The continuing reason new store activity during the past four years has been very limited is that the planet’s largest retailer devoted the majority of its cap-ex into its digital and technology platforms. And part of its e-commerce initiative did include some physical improvements at store level such as additional curbside pickup sites and more micro-fulfillment areas inside the physical stores. There’s no reason not to be believe that as inflation drives prices even higher Walmart will become even stronger. Or to paraphrase CEO Doug McMillon: when price becomes even more a factor, we tend to fare better than the competition. Walmart is a tough enough competitor but think – if it could keep its stores cleaner and better stocked, and had a better trained labor force, how scary it could be especially in inflationary times.
Acme Markets (Kings/Balducci’s/Safeway)– The Mid-Atlantic division of Albertsons, in this case primarily Acme Markets, had a strong year helped by inflation but also by ranking high on the leaderboard for having the best in-stock conditions in the entire survey. While all retailers struggled to get much over the 80 percent service level mark, Acme consistently had more product in its stores than almost all of its competitors. And one of the realities of this market study was that maintaining fuller the shelves meant you sold more stuff. The $7.5 billion division headed by the talented and way underrated Jim Perkins produced excellent comps. The results at Kings and Balducci’s weren’t quite as impressive but Albertsons spent part of the past 12 months integrating those 2021 acquisitions into Albertsons systems.
Weis Markets – Another merchant that benefited from its ability to keep its shelves stocked better than most of its competitors. Weis only opened one store (Warminster, PA) during our measuring period, but had very strong overall comps and the closely-held publicly-traded regional supermarket chain continued to produce excellent earnings as well. It will spend $150 million in cap-ex this year (mainly on store upgrades) and the management team of chairman and CEO Jonathan Weis and COO Kurt Schertle has continued to grow their organization with a combination of new managers and experienced associates. As I’ve said earlier, Weis doesn’t get the credit it deserves for its achievements.
Wawa – A strong bounce back year for the largest c-store chain in the 70-county region. Unlike most channels of trade that experienced record sales gains from early 2020 to early 2021, convenience stores in general were hurt by lockdowns and limited e-commerce opportunities. As a result, high-volume Wawa suffered through one of its worst periods when the pandemic began. This year it’s been totally different. Consumers have increased their in-store visits (in all channels) and are also traveling more and utilizing the quick food and beverage opportunities available from c-stores (note: Wawa is a huge fuel player in the market; we don’t include fuel sales in the market study). Wawa also benefited from its strong social media platform and improved e-commerce marketing. We’ve said it for a long time – the best convenience store operator in the country happens to be based in tiny Wawa, PA.
Wegmans – A year ago, Wegmans was not fully able to take advantage of the sales boom that positively affected virtually all retailers in all trade channels. A large part of that reason was the Rochester, NY-based uber-retailer’s decision to close most of its service and salad bars and reduce some of its fresh food offerings. Although they may be in slightly reimagined forms, most of those service areas have reopened and Wegmans, already the highest volume per-store supermarket in the Mid-Atlantic market, produced strong comp store sales over the past year. The expansion pipeline has also reopened with new stores slated for Greenville, DE later this year and other new uber-units slated to debut in Lower Makefield Twp., PA and three new marketing areas – Manhattan, Norwalk, CT and Lake Grove, LI.
New York Metro Independents (Allegiance Retail Services, Associated Stores Group, Key Food, Krasdale) – The guardians of the New York City independent retailers are the three service groups and wholesalers that control thousands of supermarkets, superettes, greengrocers and bodegas that do business in the Big Apple’s five boroughs.
The retailers serviced by wholesaler Krasdale and service organizations Key Food, Associated Stores Group (ASG) and Allegiance (ranked in order of sales), now account for more than 50 percent of the food sales in NYC. And while there are changes to report every year, those four companies have all done solid work of growing their advertising and marketing groups and supporting their customers/members.
For market leader Krasdale, its prime banners include C-Town, Bravo, AIM, Market Fresh, Smart Shop and Stop1 as well as growing multi-store independents such as North Shore Farms and DiCicco’s. The company, which has been owned by the Krasne family since 1908, supplies 533 independent retailers that amassed an estimated $3.9 billion in sales primarily in New York City and the surrounding areas of New York and New Jersey.
Key Food had another year of solid growth and has closed the gap with Krasdale for the number one position in New York City. Key now commands 16.9 percent of the five borough business compared to Krasdale’s 17.1 percent. Overall, Key Food members operated 298 stores in the region which produced sales of $3.8 billion. During the past 12 months, Key also switched wholesalers and its member stores are now being supplied from a new UNFI distribution center in Allentown, PA. In 2021, it also relocated its headquarters from Staten Island to Matawan, NJ.
It was also a very good year for ASG, which in 2021 was acquired by industry veterans Joe Garcia and Zulema Wiscovitch with the additional help of some private equity capital. The new owners have changed the course of the Port Washington, NY-based retail services firm for the better and along with its strong core banners of Met, Associated, Pioneer and core banners it also added high-volume fresh specialist Uncle Giuseppe’s and strong regional independent, Western Beef to its customer base.
Allegiance Retail Services remained a significant factor in the competitive Big Apple battle, especially in Manhattan where Gristedes and D’Agostino’s have significant market shares. Other banners under the Allegiance flag include Foodtown, Pathmark and Green Way Markets. The Iselin, NJ-based co-op now provides services for 111 supermarkets in New York, New Jersey and Pennsylvania whose current retail sales were approximately $1.3 billion.
New York City remains the strongest bastion of independent retailing in the country and those four firms have a firm grip of who services and/or supplies the overwhelming majority of those retail outlets.
However, the past 12 months have been uniquely challenging. Not only in dealing with COVID-related issues and the subsequent supply chain breakdowns, but also in the fact that no single market in the entire country suffered greater population losses than the five boroughs of New York City did. That negative trend is continuing, making the hurdles that independent grocers face daily, an even more daunting task.
And while it’s still not anywhere close to being a market leader (or even a market presence), we receive more inquiries about Amazon Fresh than any other merchant. So, here’s my early overview of Amazon Fresh which currently has only one store open in the market (Warrington, PA) but has nearly 30 more leases signed in the 70-county region including several that will open later this year.
Amazon Fresh – To better assess Amazon Fresh at this early juncture, I visited the four Amazon Fresh units in the Washington, DC area that opened before June as well as the Warrington, PA store which debuted last August. To be blunt, early impressions were not good, unless you buy into the theory that the stores will primarily serve as retail hubs to supplement the parent company’s e-commerce business. Or that its “Just Walk Out” technology is a game changer. From a blocking and tackling perspective at store level, execution has been subpar. Amazon Fresh’s merchandising approach is quirky at best; store ops are not crisp, and for a company the size of Amazon you’d think in-store service levels would be better. It’s still early in the game and Amazon has deeper pockets than almost everyone else, so there’s still time to improve, but what’s clear thus far is that the company has a long way to go to become a top-flight merchant.
Sheridan’s Upcoming Retirement, Lane’s Sudden Resignation Portends Big Changes At Wakefern
Based on the number of phone calls, texts and emails we received about Wakefern’s executive VP’s sudden resignation earlier this month, this was big news for a lot of companies, especially watchers of the Keasbey, NJ grocery co-op.
Let me go on record – I was/am a big Chris Lane fan. When the former Duane Reade executive was named to the EVP post six years ago, many assumed that in due time he would be elevated to the president and COO position, the highest day-to-day job at the Keasbey, NJ company. After all many argued, Lane would follow in the same path as current president/COO Joe Sheridan who was anointed by Wakefern’s board as EVP in 1996 and worked directly under then president/COO Dean Janeway. Fifteen years later, upon Janeway’s retirement, Sheridan was named to his current post. If you know anything at all about Wakefern, you’d recognize how deliberate the “changing of the guard” process is at the co-op. To wit, when Janeway succeeded Jerry Yaguda as president and COO in 1996, he had served a similar EVP apprenticeship for six years.
There was never a guarantee that Lane would be named to replace Sheridan. On a relative basis, a six-year wait in the “on deck” circle might seem lengthy, it’s really not when analyzing Wakefern’s history.
Six years ago, when I wrote a piece in this column about Chris Lane’s promotion, a lot of the industry buzz centered on Lane beating out another Wakefern veteran – Jeff Reagan, who had been with co-op longer than Lane – for the EVP spot (both were senior VPs at the time; Regan left Wakefern in early 2022).
When Sheridan was first promoted to EVP 26 years ago, the industry was much more stable and far less diverse. And since Sheridan took the helm 11 years ago, he has guided Wakefern masterfully through the seminal changes that have impacted the grocery business as well as managing internal affairs at Wakefern, especially his handling of the board, which one board member several years ago compared to “herding 50 rambunctious cats with big egos.”
So as Wakefern’s only EVP, Lane would be facing significantly different hurdles than Sheridan or Janeway did when they were named to that position in the 1990s. External challenges such as dealing with the emergence and growth of other trade channels, developing the company’s e-commerce strategy and building an executive team of his own. The latter element was not only vital for Lane’s potential personal growth but was important because the leadership team at Wakefern – one of the best in the entire grocery business – was beginning to age.
And give credit to Sheridan and Wakefern chairman and CEO Joe Colalillo to allow Lane with the freedom to innovate and guide the company with new or different initiatives than in the past. The industry was evolving rapidly and Lane certainly had the intellect and cojones to think outside the box.
Over the last five years, my colleague Kevin Gallagher and I have talked to at least two dozen Wakefern members about their view of Lane. Honestly, opinions were split between those who felt Lane’s tenure had not been effective and those who praised him for guiding the company in a slightly different direction.
“Chris Lane is a much different personality than Joe Sheridan or even Dean Janeway for that matter,” said one large ShopRite member/owner who was saddened by Lane’s resignation. “A lot of outsiders view Wakefern’s internal dynamics as being ‘old guard vs. new guard,’ but that’s not really accurate. All of us are successful businessmen and are opinionated about what’s best for our business; but we never lose sight that the co-op is the foundation of all of our businesses. I appreciated Chris’ passion – he wasn’t afraid to try new things. And change is always difficult especially with so much disruption including COVID to contend with. Along with Joe and his team, Chris helped accelerate our online platform (ShopRite From Home) – which I’m a strong believer in but others aren’t, because it’s a money losing proposition today. But if we didn’t have an e-commerce presence – one that is improving – we wouldn’t have a business in five years. Chris was a strong personality. I think his departure is a damaging blow.”
Oh, there’s one more important fact that affects this whole scenario. Earlier, I mentioned that over the past six years there have been some significant retirements by Wakefern executives who contributed greatly to the company’s success over the past 25-40 years. Additionally, several other members of the co-op’s leadership team including the aforementioned Reagan, VP-merchandising Parag Shah and SVP-marketing Erik Keptner – have also left Wakefern.
In the past few months, Joe Sheridan also told the board that his retirement date would occur in October 2023 (more on the great job Sheridan did in his nearly 50-year career in a future issue). Suddenly, there’s a potential huge void at the top of Wakefern’s leadership. Within a day of Lane’s resignation, the co-op announced that it will shortly begin a search to replace Sheridan. Sources told us that both internal and external candidates will be interviewed.
And now the handicapping has begun with no fewer than 50 readers already chiming in. Internally, Bill Mayo (SVP-chief administrative officer and a 27-year Wakefern veteran) and Steve Henig (SVP-chief customer officer who’s been with the co-op for 30 years) are the names we’ve heard most. Externally, the prognosticating was less clear.
However, the feelings of one large broker executive, whose called on the company for more than 25 years, seemed to summarize those of other observers: “If Wakefern goes outside the organization to name Sheridan’s replacement, he better have an understanding of how the Metro New York and Philadelphia markets work. Perhaps even more key, he better understand the dynamics of the company within the walls of Keasbey but also the unique and sometimes delicate nature of interacting with its 50 members. The intangibles are important.”
Much more to come about this.
Stop & Shop To Invest $140 Million To Improve Its 25 NYC Supermarkets
In the New York Metro market, Stop & Shop has been playing catch up for decades. Unlike its sister brands – The Giant Company, Giant Food, Hannaford, Food Lion and even its New England division, which grew their dominant market shares organically over a period of more than 60 years – the largest Ahold Delhaize USA (ADUSA) unit entered the tough New York market through acquisitions (primarily Melmarkets and Mayfield) in the mid-1990s.
And while Stoppie has long been number two to perennial leader ShopRite/Wakefern, its market share has slipped over the past decade due to the growth of alternate channel retailers (particularly club stores and mass merchants) and those in the supermarket class of trade that are more differentiated (Whole Foods, Wegmans) than the Quincy, MA-based chain. Also contributing to Stop & Shop’s NYM problems has been the lack of capital invested in its 206 stores in the large and diversified area which includes 26 counties in the region.
While it still has a long way to go to keep pace with the ferocious competition in the $69 billion market, the retailer has made moves in recent years to begin to change the view.
In 2019, Stoppie named Gordon Reid as its new president, bringing in a different personality and leadership approach to a company whose semi-inbred culture was often criticized. Then it gave Reid the necessary capital to improve the stores, beginning with more than $200 million to upgrade its 51 stores on Long Island where it is the leading food retailer. Parent firm ADUSA also sought to acquire King Kullen’s 34 stores in Nassau and Suffolk Counties in 2020 before that deal was mutually cancelled.
And earlier this month, the company announced that it will invest $140 million to improve its 25 stores located in the City of New York – the Bronx, Brooklyn, Queens and Staten Island (Stop & Shop does not operate stores in Manhattan, but it delivers there as does Ahold Delhaize’s online grocery retailer FreshDirect).
The company’s Bay Plaza store in the Bronx was the first to be remodeled on June 10, with additional store upgrades across the boroughs taking place over the next two years. In addition to the investment in its stores, Stop & Shop has committed $1 million to fight food insecurity across NYC this year through several local initiatives and community partnerships.
“We’re proud to make such a significant investment in New York City, and we’re excited to show customers that we can be the one-stop shop for everything they need and that we’re delivering great value, particularly in this current economic environment,” said Reid. “We’re also committed to fighting hunger in the boroughs and as part of our $1 million commitment, we’re investing nearly half a million in the city’s public schools and colleges to ensure local students have consistent access to healthy food so they can succeed in the classroom and beyond.”
A key component of Stop & Shop’s enhancements is a significantly expanded assortment with thousands of new items across the store to better meet the needs of the diverse neighbors it serves. The refurbished Bay Plaza store features a new ‘Global Market’ with authentic products from 14 different regions tailored to its neighbors and for those looking for unique products for globally inspired cooking.
The big retailer currently employs approximately 3,300 associates at its 25 Big Apple units.
Round The Trade
Amazon has announced its annual “Prime Days” online discount event for this year will be held in a 33-hour period on July 12 and July 13 and industry analysts are predicting even better sales than in 2021 when revenue for the event reached an estimated $11 billion. As “Godzilla’s” competitors have done for the past several years, there will be similar types of events at Target (“Deal Days” from July 11-13) and Walmart, which has not yet announced its specific timeline for its annual “Deals for Days” events but typically runs its online savings marathon during the same period as its two major rivals.
And speaking of rivalries, as I stated last month, I believe there’s reason to be concerned with recent Q1 financial reports from the nation’s two largest mass merchants – Walmart and Target – which both posted solid comp store sales gains but saw earnings plummet noticeably. “Throughout the quarter, we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations, and well below where we expect to operate over time,” Target CEO Brian Cornell stated. Among the “factors” Cornell noted was the stress of dealing with the continued supply chain dysfunction. Within days of that release, came an announcement that the large national retailer would immediately begin canceling orders from suppliers (some grocery, but primarily in clothing and home goods) as it seeks to radically reduce existing inventories. Target cited a shift in spending habits by its customers – an increase in travel and more eating away from home – and rapidly rising costs, particularly in labor and transportation. “Retail inventories are elevated,” said Michael Fiddelke, Tar-Jay’s CFO. “And they certainly are for us, in some categories that we misforecast. We determined that acting aggressively was the right way to continue to fuel the business.” Predictably, for the first time since the COVID pandemic began to impact people’s lives and businesses nearly 30 months ago, we’re seeing a few cracks in the record-breaking profit performances of industry leaders. While sales have not yet been severely impacted, that day may not be far off. Cornell and McMillon did not address the issue directly, but there’s a growing feeling among retailers that manufacturers are taking price increase liberties beyond the supply chain difficulties which are real and painful for everybody.
Some Walmart news: in an SEC filing earlier this month, it was announced that Walmart had acquired a 62.2 percent stake in automated warehouse solutions company Symbotic, the robotics firm led by chairman Rick Cohen (who is also the executive chairman of C&S). Walmart also stated that its original agreement with Symbotic, announced last year in which the Wilmington, MA-based firm would equip 25 of the “Behemoth’s” regional distribution centers, has now been expanded to cover all 42 warehouses nationally. A few weeks before Walmart confirmed the deal, Symbotic became a publicly-traded firm (symbol: SYM) utilizing the SPAC route with primary financial partner SoftBank Group Corp. driving the deal. At the end of the day on June 21, Symbotic shares were trading at $15.56. You’ve got to hand it to Rick Cohen: he’s nearly 70 but he still has the vision and passion to create a new business model. He truly is the Babe Ruth of distribution and logistics.
The bees are back in Carlisle! Following the theft of its honeybees earlier in the year, The Giant Company (TGC) announced that two new beehives, housing 30,000 honeybees, are now at home near the company’s seven-acre pollinator-friendly solar field at its corporate headquarters. The company will continue to add to the colony over the next several months and will ultimately house 450,000 honeybees in nine beehives by next year. “The theft of our bees and beehives in January brought to light the issue many beekeepers around the country are facing – not only have bee populations been declining for decades, now they are also being stolen,” said Nicholas Bertram, president of TGC. “Bees and other pollinators are crucial to growing fruits and vegetables; without them, our produce departments and mealtimes around the table would look much different, with many of our favorite items missing from plates. Recognizing the impact bee colony loss has on our local food supply chain, we knew we would bring honeybees back to our corporate headquarters, but not everyone is as fortunate as us. That’s why we also wanted to support other local beekeepers impacted by this issue, too.”
We have some major CPG news to report as well. Kellogg has announced that it will split its business into three separate publicly-traded divisions as its seeks to gain more shareholder value. The Battle Creek, MI manufacturer said that its global snacking business ($11.4 billion in annual sales and includes such brands as Pringles, Cheez-It, Pop-Tarts, Kellogg’s Rice Krispies Treats, and Nutri-Grain); its North American Cereal business (approximately $2.4 billion in annual revenue and includes such brands as Rice Krispies, Corn Flakes, Fruit Loops, and Frosted Flakes); and its plant-based business (sales of about $340 million in FY 2021 and will be built around its MorningStar Farms brand) will all operate as independent business and be given new names that will be announced at a later date.. “Kellogg has been on a successful journey of transformation to enhance performance and increase long-term shareowner value. This has included re-shaping our portfolio, and today’s announcement is the next step in that transformation,” said Steve Cahillane, company’s chairman and CEO. “These businesses all have significant standalone potential, and an enhanced focus will enable them to better direct their resources toward their distinct strategic priorities. In turn, each business is expected to create more value for all stakeholders, and each is well positioned to build a new era of innovation and growth.” This massive reorg is expected to be completed by the end of 2023.
Additionally, Mondelez said that it will buy energy bar maker Clif Bar in a deal valued at $2.9 billion (that’s a lot of energy).
Local Notes
Industry veteran Joe Parisi has added the title of president to his duties at Gristedes and D’Agostino’s, the supermarket retailer which operates 30 stores in Manhattan and Brooklyn. Parisi joined the privately-held merchant last May as COO after spending nearly 25 years with Kings, the upscale Parsippany, NJ-based chain which was acquired by Acme Markets (Albertsons) in early 2021. John Catsimatidis, chairman and CEO of parent firm Red Apple Group, said: “His (Joe’s) passion for the food industry is remarkable and will take the supermarket industry into the 21st century. He has a great vision for the 132-year-old Gristedes and 90-year-old D’Agostino, and we are confident that his leadership will bring our stores to new heights.”
King Kullen announced that it will close two underperforming stores in Franklin Square and Glen Cove (both in Nassau County) when their leases expire next month. And we’re already hearing reports from our real estate sources that Amazon Fresh is poised to take over the 38,000 square foot Glen Cove site which is certainly a demographically favorable location…18 years ago, Costco stores in New Jersey lifted the restriction to sell fuel to only its members, fearing it might be in violation of New Jersey state law. Beginning on July 5, the big club merchant will not allow non-members to purchase fuel at any of its 17 gas stations in the Garden State. This move will reportedly make Costco’s fuel policy uniform in the 44 states in which it operates stores. Does that mean there will only be 15 cars queued in each lane as opposed to the 25 vehicles we’ve seen stacked up during the past two months when fuel prices went through the roof?