April 13 was an eventful day in the Mid-Atlantic grocery industry as Redner’s Markets held its first-ever vendor meeting before nearly 400 brokers, suppliers and distributors at the Redner’s Event Center in Reading, PA. Additionally, about 50 other vendors heard the presentation remotely via webcast.
Kicking off the meeting was company president and CEO Ryan Redner who credited his late father Dick (“The Boss”) and grandfather and founder Earl (“The Chief”) as continuing inspirations in providing the foundation for Redner’s growth.
The 49-year-old third generation executive also thanked the vendors for their support, noting that many of Redner’s relationships with its supplier partners are personal ones, a vital component to the success of any family business.
Ryan Redner then handed the microphone to his first cousin, chief operating officer Gary Redner, who provided insight and analytics about the regional chain’s upcoming business strategy.
He began with a look at the retailer’s Central Kitchen, an idea that Redner’s developed in 2019 and which came to fruition after the retailer hired popular local executive chef Tim Twiford. Already on the planning board at the time was a rebrand of the company’s conventional store model which was created by “The Chief” in 1970. The younger and emerging leadership team wanted to develop a more perishables-driven concept, which ultimately became Redner’s Fresh Market (RFM), and believed that the utilization of a central kitchen/commissary would best serve the new format as well as the existing Redner’s Markets stores. The first RFM debuted in 2019 when Redner’s converted its Wyomissing store into the new model. Later that year, it opened a second RFM unit in Audubon, PA, a former Genuardi’s unit. Today there are eight RFMs located in Pennsylvania, Delaware and Maryland. And the Central Kitchen, which opened after the first two stores debuted, now operates in a 10,000 square foot former Rite Aid drug store in Reading where it produces more than 200 items including prepared foods, sliced meats and cheeses.
As Redner’s continued to expand and innovate, it added a central produce facility (The Chop Shop) in 2025 which serves all of Redner’s 44 supermarkets and 13 convenience stores with chopped fruit and vegetables, both branded SKUs and not-for-resale items. Also under consideration in the future are centralized facilities for bakery and meat.
Gary Redner also updated the crowd about the changes at the company’s convenience store division which feature two banners – Redner’s Quick Stops and Redner’s Quick Shoppes. The former format features a total rebranding/remodeling of the company’s traditional c-store model. New gas tanks/stations have been installed and the remodeled units feature a significantly upgraded décor package, improved merchandising and more emphasis on foodservice. Some of the other seven Quick Shoppes are being considered for conversion to the new Quick Stop design.
Also discussed by Gary Redner was the retailer’s first Cost Boss store which debuted last month in Baltimore. Redner’s converted a traditional supermarket to a no-frills limited assortment store which features a simplified shopping experience utilizing everyday low prices and bulk essentials. At this point, the Dundalk location is serving as a test which, if successful, could be deployed at other Redner’s traditional units.
Gary Redner also revealed the company’s plans for its next newest store, a 52,000 square foot former Acme Market on Kirkwood Highway in Wilmington, DE. Dubbing the new unit Redner’s Fresh Market 2.0 – the new store will be an extension of what the company has learned from the eight existing RFMs currently operational. The new store will feature greater emphasis on customization and prepared foods while keeping within its “store within a store” guidelines. Customers who shop at the new unit will find such new offerings as Earl’s Smashburger, Fisher’s Pier, Big Gary’s Fried Chicken, Carnival Crunch, and Marybakes, the bakery shop inspired by Earl Redner’s wife Mary. The store is scheduled to open later this year.
Gary Redner also noted the contributions of the NGA Family Business Alliance, a share group of about 25 non-competing independent retailers who exchange ideas. Greg Ferrara, CEO of the National Grocers Association, attended the meeting.
We’ve heard from about a dozen vendors in attendance who gave the meeting a big
“thumbs up” for the information delivered, the hospitality of the Redner’s organization, and the overall good vibe.
And I’m always happy to report about good people doing good things to help the industry.
‘Round The Trade
In his annual letter to shareholders, Amazon chief executive Andy Jassy talked about his company’s mixed results in the grocery sector, nothing that “not all of these experiments have worked, but each has taught us something important.” While the entire industry is aware of the failure of Amazon Fresh (AF), Jassy highlighted “Godzilla’s” successful ventures which include Whole Foods, the addition of adding perishables to its same-day delivery network (according to Jassy, perishables sales have grown more than 40 times in only a year) and the recently launched Daily Shop small, urban convenience retail format. One food-related format that Jassy did not address in his missive, are the new supercenter-type physical stores that Amazon plans to build in Orland Park and Oak Brook, IL. Business Insider has discovered much more detail about “Project Kobe.” According to the story, the two Illinois locations represent just the starting point for a network of large format grocery and general merchandise stores (about 225,000 square feet) with automated fulfillment centers attached to each store. Business Insider reorted that Amazon also has plans to construct other pilot “Kobe” facilities in Cherry Hill and Edison, NJ, with a plan to go nationally if the test stores prove successful. Other than Whole Foods, which was a highly successful merchant when Amazon acquired it in 2017, Amazon has been a failure at physical retail (AF, Amazon Go, clothing, books, general merchandise stores, too), it’s hard to that by going bigger, Amazon will suddenly get better at brick & mortar food retailing. But as I’ve written before and what Jassy told the company’s shareholders, Amazon’s got plenty of time and even more money to continue to “experiment” and become a competitive thorn in other retailer’s sides. To wit: Jassy also noted that the advancement of artificial intelligence could vault Amazon’s most profitable subsidiary, Amazon Web Services (AWS), to more than double its current annual volume to $600 billion over the next decade. That’s a scary number. But the power of AWS is irrefutable. In 2025, the cloud computing unit of “Godzilla” rang up sales of $128.7 billion (up 19 percent over 2024) which produced a whopping $45.6 billion in profits. More Amazon news: the Seattle-based juggernaut is also moving its “Prime Day(s)” shopping circus from July to late June this year. The event which began as a one-day sales in July 2015, is now a four-day extravaganza. Expect every other retail competitor who now offers similar discount events to follow suit with their promotions also occurring in June… On the financial front, Albertsons’ Q4 and sales and earnings were on the disappointing side. The Boise, ID-based chain posted a net loss of $480.8 million, or 94 cents per share, for the quarter ended February 28, compared with net income of $171.8 million a year earlier. The loss was driven by a roughly $774 million settlement framework intended to resolve substantially all opioid-related claims brought by state, local, and tribal governments. Excluding the charge and other items, adjusted earnings rose to 48 cents per share, beating analyst expectations and marking continued underlying profitability. Net sales increased to about $20.3 billion from $18.8 billion a year earlier but fell short of Wall Street forecasts. Of this increase, $1.4 billion was attributed to an extra week in Q4 fiscal 2025. Identical sales rose 0.7 percent driven by pharmacy sales, but below expectations. The opioid agreement, which the company said is not an admission of wrongdoing, will be paid out over nine years and is designed to resolve most outstanding litigation tied to prescription opioid dispensing practices. The settlement overshadowed otherwise steady operating performance. For the full fiscal year, Albertsons reported net income of about $217 million. Company executives pointed to ongoing pressure on lower-income consumers, including reduced government assistance and higher fuel costs, as factors weighing on sales trends. Albertsons increased its quarterly dividend 13 percent to 17 cents per share, part of a broader capital return strategy that includes share repurchases. Looking ahead, the company forecast identical sales growth ranging from flat to up 1 percent in fiscal 2026, reflecting a cautious outlook amid persistent economic pressures and moderating pharmacy growth. CEO Susan Morris is doing a good job of maximizing Albertsons’ current situation. But without continued significant capital devoted to remodeling an aged store base in most markets and a commitment to become more competitive on everyday pricing, Albertsons’ ability to become a change agent seems nearly impossible. The hopeful news on that front is that during the post-earnings release conference call with financial analysts, CFO Sharon McCollam said that her company would spend significantly more than the $1.8 billion Albertsons carved out for cap-ex in fiscal 2025 when it remodeled 94 stores. Albertsons’ current fleet consists of nearly 2,300 supermarkets, most of which need refreshing, so a lot more work needs to be done.… Costco, one of the first and one of the largest companies to sue the U.S. government over the legality of tariffs last year, is now being sued by seven of its members, who are also seeking to receive refunds from those tariff overcharges. This all became possible when the U.S. Supreme Court deemed that the Trump administration’s levies on imported goods were unconstitutional. With more than $166 billion added to the U.S. Treasury from those surcharges, the scramble has begun on how to refund that amount back to companies (and ultimately consumers). The U.S. government has made no promises to refund anything at this point (disappointing but hardly surprising) and the case will be heard in the International Court of Trade. As for Costco, CEO Ron Vachris said that his firm’s “commitment will be to find the best way to return value to our members through lower prices and better values. We’ll be transparent in how we plan to do this and when we receive any refunds.”…kudos to our buddy Joe Kelley on being named COO of Associated Wholesale Grocers (AWG). In his new post, Kelley will lead and align the Kansas City, KS-based wholesaler’s merchandising, procurement, distribution, sales, marketing, and division support center operations. Joe has had a very fluid career with career stops at Kroger (his last stop was SVP-retail divisions). Albertsons, Price Chopper, Stop & Shop, and Bozzuto’s. Joe’s intelligence and extraordinary street smarts will serve him well in his new post – we wish him the best…for what it’s worth, the SEC’s consideration of allowing publicly-traded companies to report their sales and earnings on a semi-annual basis is a good one. For years, I’ve heard from many CEOs who feel the pressure to submit a “report card” every 90 days is excessive, forcing them to focus on short-term results in exchange for long-term strategy and planning. Those who might complain that extending the reporting period would encourage deception or cheating (are you listening, Letitia James?) may not clearly understand how much media scrutiny (social and broadcast) and pressure is on all publicly-traded firms. Plus, the SEC consideration would be an optional, not a mandatory one…it is with sadness (but not surprise) that I report this piece of news: The University of Michigan’s Consumer Sentiment Index for April indicated that consumer confidence has reached a 75-year low. The survey said that confidence levels are now 47.6 percent, even lower than the 50 percent confidence rating recorded in June 2022 when inflation was spiraling. For food retailers the incline only becomes steeper. Indirect factors like war with Iran (and ensuing increased fuel prices) and direct ones like inflation, reduced SNAP benefits, the impact of GLP-1 drugs, and overstoring aren’t giving merchants a lot of reasons to smile. But to see that less than half of those who were polled for this survey have little or no confidence in our economy is sobering.
Local Notes
The Giant Company (TGC) will build its second supermarket in Ephrata, PA, the Carlisle, PA-based ADUSA brand announced earlier this month. The 39,000 square foot store will be part of a redeveloped shopping center at the intersection of W. Main Street and Route 322. “We have a long history of serving Lancaster County and Giant remains committed to continued investment in our stores, in our local communities, and in the freshness and value that customers expect when shopping with us,” said John Ruane, president of TGC. “This second Ephrata store will provide greater convenience for our customers living and working in the northwest portion of the borough, coupled with the latest amenities and service delivered with kindness they have come to expect from Giant.” Currently, the regional chain operates 12 supermarkets in Lancaster County. Other new stores are slated for Glen Mills, PA; Parkesburg, PA; and in the Andorra section of Philly. Additionally, TGC recently acquired two independent stores from the Bob and Joe Appleby in Everett, PA and Saxton, PA (both in Bedford County)… Lidl will replace Streets Market as the anchor tenant in East Baltimore’s Yard 56 shopping center. Streets, which opened its Eastern Avenue unit in 2021, currently operates 10 stores in the B-W market with eight of its small format units located in the Washington area. At 20,000 square feet, the Yard 56 projected was Streets’ largest and most ambitious project when it debuted. As for Lidl, the new store will be the German-discounter’s second store in Baltimore City and 10th in the Baltimore area…Altoona, PA-based Sheetz has big plans for Indiana. As it continues to expand westward, the top-flight family-owned retailer said it will open 100 c-stores in the Hoosier State in the next 10 years including its first locations next year…in my never-ending quest to highlight musicians who recently passed away and were great at their craft but sadly were underrated or unsung during their careers, I note the deaths of Chip Taylor and Augie Meyer. Taylor, 86, was best known as a songwriter, so it’s not surprising his name isn’t that well-known, especially since other singers had big hits with his tunes. Those hits included “Wild Thing” (The Troggs – and a great Jimi Hendrix version, too); “Angel in the Morning” (Merrilee Rush); “Try (Just a Little Bit Harder)” (Janis Joplin); and “Shilo” (Neil Diamond). Taylor was inducted into the Songwriters Hall of Fame in 2016. One more trivial fact: Taylor’s birthname was James Wesley Voight and his older brother is Academy Award winning actor Jon Voight…Augie Meyers, 85, who was part of one of the greatest and most unsung bands in rock & roll history, Sir Douglas Quintet. The San Antonio-based group developed a unique Americanized “Tex-Mex” sound and, along with bandleader Doug Sahm, Meyer helped create the band’s organ-driven sound with his unique mastery of the Vox Continental organ (which was in vogue long before the Hammond B3 became popular). After Sir Douglas disbanded, Sahm and Meyers formed another great band, The Texas Tornadoes, which also featured virtuoso musicians Freddy Fender and Flaco Jimenez. Meyers also played on hundreds of other studio sessions for other artists including on multiple Bob Dylan albums, prompting Mr. Zimmerman to note: “Augie’s my man. He’s like an intellectual who goes fishing using bookworms. Seriously though, he’s the shining example of a musician, Vox player or otherwise, who can break the code.”
Jeff Metzger is publisher emeritus of Food World and Food Trade News and founder of Taking Stock LLC, a grocery industry advisory and consulting firm.
