The latest data shows food inflation is again starting to outpace traditional CPI inflation; it just notched the sharpest increases since 2022. We don’t think this is going to come as a surprise to customers.
Nor is it a surprise that value, consistency, and trust are set to be even more critical in the industry. At the same time, competitive pressure feels more uneven across banners, formats, and even neighborhoods. Capital is still flowing, but it’s flowing more selectively. This week’s Five Things highlight where those shifts are already showing up on the ground and what they signal for the months ahead.
Wakefern’s Cooperative Strength Is Translating into Volume Growth
Wakefern Food Corp. – the largest grocery cooperative in the U.S., whose banners include ShopRite, Price Rite, the Fresh Grocer and recently acquired Morton Williams – rang up a record $15.8 billion in wholesale volume in 2025, up from $15.4 billion in 2024.
Why it matters: That healthy topline uptick at a time when general grocery traffic is uneven suggests Wakefern’s model of centralized procurement and marketing with local operator execution is helping independent operators protect share in the Northeast’s intensely competitive price/value environment.
Ahold Delhaize Shifts Toward Execution Basics Amid Cost Pressure
Ahold Delhaize USA continues to tout online grocery profitability for its Peapod and digital unit after years of investment, signaling a pivot from innovation experiments toward fundamentals.
Why it matters: In markets like Stop & Shop and Giant, focusing on consistent pricing and labor efficiency is critical as inflation-weary shoppers watch every dollar – and as larger competitors deploy deep discounting and loyalty incentives.
Prepared Foods Departments Are Aligning to Shrink and Demand Cycles
Industry trend reporting shows consumer shifts to convenience and value channels, and grocers are responding by tightening fresh and prepared offerings to reduce waste and improve profitability.
Why it matters: Prepared foods – ostensibly a margin driver – is now high-risk when demand fluctuates. Northeast stores tightening assortments reflect broader pressure to align labor and shrink with unpredictable foot traffic patterns.
Amazon’s Grocery Strategy Is Becoming Clear
After deciding to shutter all physical Amazon Fresh and Amazon Go locations nationwide, the company is adding more Whole Foods Daily Shop stores and accelerating Whole Foods Market growth. The likely truth is Amazon’s grocery moves right now are just the tip of the (very big) iceberg.
Why it matters: The Northeast is seeing this play out with a new Connecticut Whole Foods opening and plans for more stores; rivals can justify capital deployment in local formats without fearing a massive Fresh-store blitz.
Regional Grocers Double Down on Local Relevance
Independent and regional chains in NYC and the Northeast are facing direct cost pressure from upstream distributors retrenching service (e.g., Mondelez ceasing direct deliveries to ~1,000 local stores), forcing a jump to third-party wholesalers that may drive price hikes.
Why it matters: Supply chain shifts hit independents and regional operators first, but they also create opportunities for tailored assortments and service that national banners struggle to replicate — especially where local tastes and geography matter.