Competition isn’t always the top challenge in this business; endlessly shifting consumer habits, ambitious growth targets and events beyond our control all loom large out there this week.
With Thanksgiving approaching, Michael Rathburn is looking at how GLP-1 medications, tighter household budgets and a growing appetite for international foods could reshape the holiday shopping basket. Later, I’ll look at how durable the traditional holiday feast is and how the way Americans shop for it is changing faster than retailers might realize. I’m also going to share some findings from a report I read on the far-reaching economic impacts of all Cyclospora outbreaks.
Meanwhile, Wakefern is celebrating 80 years in business and demonstrating that the cooperative model is a secret sauce unto itself; Duke Winston has that story. Jessica Smith reports on the new DoorDash/Instacart deal, set to close next year.
Five stories, five new developments, and plenty to consider heading into November.
Thanksgiving’s Grocery Basket May Be Getting Smaller
Thanksgiving has always been a holiday built around excess, but grocers may need to rethink that approach this year. With GLP-1 medications changing appetites and household budgets under pressure, the traditional holiday shopping basket could look very different. PwC reports that 21% of U.S. households now include a GLP-1 user, and that grocery spending 5.5% lower in those households. Smaller portions, sharper promotions and smarter timing may matter more than another mountain of stuffing.
Michael Rathburn breaks down the trend…
Wakefern Turns 80 – Big Things Ahead for the Co-Op
Wakefern Food Corp. celebrated its 80th anniversary with $21.5 billion in annual retail sales, seven new stores and more than $150 million in capital improvements. Sales increased 2%, although the cooperative’s 53-week fiscal year included an extra selling week, making the growth figure less impressive than it first appears. Still, Wakefern’s continued investment in stores and renovations demonstrates that its retailer-owned model remains a significant competitive force in the Northeast’s increasingly consolidated grocery market.
Duke Winston has details of the company meeting…
Global Flavors Find Their Place at the Holiday Table
Turkey, stuffing and pumpkin pie aren’t going anywhere, but younger shoppers are bringing some new flavors to the holiday table. Wholesale marketplace Faire reports a 63% increase in orders for foods imported from East and Southeast Asia, while imported food and beverage spending rose 20%. Those figures measure retailer purchasing, not consumer sales, but the message is loud and clear: International foods offer grocers an opportunity to expand holiday assortments without abandoning traditional favorites.
Cyclospora Outbreaks Leave a $374 Million Dent in Salad Sales
A food safety outbreak doesn’t have to happen in your market to hurt your sales. New research estimates that Cyclospora outbreaks cost U.S. bagged-salad retailers $374 million between 2018 and 2022, with weekly purchases declining an average of 3.89% during outbreak and recall cycles. Even states without reported illnesses experienced sales declines when they shared media markets with affected areas. As it happens, consumer anxiety doesn’t respect state lines, and neither does the financial damage.
Here’s what I found in a new report…
DoorDash’s $17 Billion Instacart Deal Could Change Grocery Delivery
DoorDash is buying Instacart for approximately $17 billion, a deal that could fundamentally reshape the grocery delivery business. The combination would bring two major delivery platforms under one roof, along with their fulfillment technology, retailer relationships and advertising operations. That’s a substantial consolidation of power in a business where grocers already struggle to control costs and customer relationships. Regulatory approval is far from guaranteed, but retailers should be paying close attention to what this deal could mean for competition.