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Independent Grocer Sam Marrazzo Dies Age 76

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Sam Marrazzo, operator of Marrazzo’s Market in Ewing, NJ and a fixture in the Delaware Valley grocery industry for many years, passed away February 23 at the age of 76.

Sam will be remembered by his loving wife of 54 years, Margaret Marrazzo (Scott), daughter Mary Marrazzo Saltzman and her husband Josh and loving granddaughters Samantha Christine and Mary Catherine. He is survived by his brother Joseph Marrazzo and his family.

Sam was preceded in death by his parents and business partners Mary and Donald Marrazzo.

Sam was a graduate of Pennsbury High School and upon graduation immediately became involved in the family business at Marrazzo’s Quality Food Market on South Broad Street in Trenton, NJ.

Sam followed the legacy of his father, Donald, who began the Centre Fruit Market on Centre Street in Trenton in 1947.

In 1961, the family opened their second location, Marrazzo’s Quality Market on South Broad Street in Trenton. Don later made Sam a partner in the business, and they continued to run that store until it came time to expand. In 1989, they opened Marrazzo’s Thriftway in Robbinsville, which they sold about three years ago. The current 36,000 square foot supermarket in Ewing was opened in 2000.

Sam said the family personally managing the store had helped cut down on costs and improve customer service. “The good fortune we had came from 60 years of working hard,” he noted. “We still do.”

He was widely recognized and respected in the business world. He sat on the board of Yardville Bank and First Trust Bank in addition to the board of the Retail Marketing Group (RMG).

One of his greatest pleasures was greeting his customers each day. They became his friends, and he took a very personal interest in their stories. Everyone was aware of his high personal and professional standards. He always believed his customers deserved the best of himself and his employees. He truly was “Marrazzo’s Market.”

Donations in his memory can be made to St. Jude Children’s Research Hospital or to the charity of one’s choice.

Whole Foods Market To Debut ‘Daily Shop’ In Manhattan Later This year

Whole Foods Market (WFM), a unit of Amazon, earlier this month announced that it will open a new, quick-shop store format designed to provide customers in urban neighborhoods a quick, convenient shopping experience with easier access to the fresh offerings that can be found at its Whole Foods units.

The new format, called Whole Foods Market Daily Shop, will initially launch on the Upper East Side in Manhattan with additional locations in New York City to follow. The first store, located at 1175 Third Avenue, is expected to open later this year. Following the New York City launch, the company said Whole Foods Market plans to bring the format to other cities across the country.

Ranging from 7,000 to 14,000 square feet, the quick-shop stores are about a quarter to half the footprint of an average 40,000 square foot Whole Foods Market, paving the way for expansion in dense, metropolitan areas. In busy areas like Manhattan, the retailer is hoping to bring Whole Foods Market closer to existing customers, while extending the company’s reach to others in surrounding neighborhoods, the retailer noted.

The new Whole Foods Market Daily Shop will provide a convenient option for grab-and-go meals and snacks, weekly essentials, and a quick, easy destination to pick up ingredients to complete a meal – with all items meeting the company’s quality standards. Though smaller, the stores will still offer Whole Foods Market best-selling items, including a selection of fresh, seasonal produce, meat and seafood, prepared foods such as sandwiches and pre-packed meals, breads, alcohol, and supplements, as well as a handpicked range of local specialties and its own 365 by Whole Foods Market brand.

In addition, the location will be the first Whole Foods Market store in Manhattan to offer Juice & Java, a venue for coffee, tea, fresh pressed juices, smoothies, sandwiches, soups and various desserts.

“At our new store formats, we’re tailoring every square foot to the unique, fast-paced needs of urban lifestyles. We’re excited to introduce a new way for our customers to quickly pick up their Whole Foods Market favorites – from grab-and-go meals to that last-minute dinner ingredient – making the early morning or after work grocery trips more efficient and enjoyable,” said Christina Minardi, executive VP-growth and development, Whole Foods Market & Amazon. “Expanding our footprint with Whole Foods Market Daily Shop is key to our growth, fostering deeper customer connections, and advancing our purpose to nourish people and the planet.”

Minardi is a New Jersey native who also served as Northeast Region president for 12 years.

The new format stores will not replace the traditional Whole Foods Market store format. In 2023, Whole Foods Market added its 17th store in New York City at One Wall Street.

The new Daily Shop format also will not replace the company’s seven Manhattan Amazon Go stores, which are smaller (about 1,800 square feet) c-stores of which there are seven in Manhattan and 22 in the U.S.

Despite criticism of its multi-faceted grocery platforms, Amazon CEO Andy Jassy, speaking to financial analysts after last month’s strong Q4 earnings call, said he is “pleased with the progress we’re making” in the grocery segment of the business. That includes its Amazon Fresh locations, online sales of groceries through its website, and about 530 Whole Foods Market locations.

“It’s a big business, and it’s continuing to grow at a very healthy clip, and we’re really pleased with that business. And it’s really the way that most mass merchandisers got into the grocery business a few decades ago,” he said.

He added that the company began work last year remodeling select Amazon Fresh locations.

“If you want to serve as many grocery needs as we do, you have to have a mass physical presence, and that’s what we’ve been trying to do with (Amazon) Fresh over several years,” Jassy said. “We’ve been testing (version 2) of our Fresh format in a few locations near Chicago, and a few locations in Southern California. It’s very early, it’s just a few months in, but the results are very promising and on almost every dimension, and so we need to see it for a little bit longer time, but the results appear like we have something that’s resonating and if we continue to see that, then the issue becomes how fast and what’s the best way to expand.”

 

 

Kroger, Albertsons File Lawsuit Against FTC Over Merger Ruling

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Kroger and Albertsons both have challenged last month’s Federal Trade Commission (FTC) ruling to block the proposed merger between the two large supermarket chains.

On August 26 both retailers will have their day in court – specifically, U.S. District Court in Portland, OR – when a trial is scheduled to determine if the FTC overstepped its bounds in denying the completion of the $24.6 billion proposed deal. Regardless of the ruling in what is expected to be a 2-3 week trial, both parties will have the right to appeal which could substantially extend the time before a final decision is rendered.

When the original FTC decision was rendered on February 26, both chains expressed strong disagreement with the ruling. On March 14, Kroger and Albertsons filed public comments about that decision.

In their separate filings, both supermarket chains reiterated their previous stance that the FTC’s decision does not factor in the growing and significant competition posed by alternate channel retailers including Walmart, Costco, Amazon and Target. Kroger noted that the agency’s complaint is “…willfully blind to the realities of current grocery competition…” and its position “…lacks any basis in the real world.”

Albertsons’ filing focused on the same issue, noting “Simply put, although the Commission alleges that the merger is likely to harm competition in both of the alleged relevant product markets, the so-called ‘facts’ it has offered in support of this bold assertion completely ignore the commercial realities of a marketplace that is both highly competitive and rapidly evolving.”

Albertsons added in its filing, “The Commission’s claims are premised entirely on the Commission’s distortion and willful ignorance of basic but critical facts.”

Both merchants also criticized the FTC’s view of organized labor cited in its decision. “The Commission also purports to allege a myopic ‘union grocery’ labor market that bears no relation to the market in which Kroger actually competes for talent. In reality, (both companies) are miniscule players in the overall labor market, which includes grocery retailers, non-grocery employers and non-union employers alike,” Kroger said.

Albertsons added: “This unprecedented product market completely ignore the labor market in which respondents compete, which includes non-union as well as non-grocery retailers. Moreover, the Commission’s allegations regarding the impact of the merger on the union’s bargaining power takes negotiations with the unions out of context and ignores that the merger is actually likely to increase the union’s bargaining power.”

The chains also contested the FTC’s assertion that C&S Wholesale Grocers (the prospective buyer of 413 Albertsons and Kroger stores) is not a viable operator. “C&S is not a mom-and-pop operation or a risky private equity venture. It is a well-capitalized company with deep industry experience,” Kroger stated. Similarly, Albertsons said that the “…FTC is ignoring that C&S is a large, sophisticated, and well-financed company with deep grocery industry experience, and is well-positioned to successfully operate the significant assets that it will receive as part of any divestiture package and execute on its business plans.”

The FTC’s decision claimed that C&S Wholesale Grocers’ proposed acquisition of 413 stores (mostly Albertsons units), eight distribution centers and two office buildings for $1.9 billion should also be rejected, noting the two retailers’ proposal is an effort to sell off “a hodgepodge of unconnected stores, banners, brands and other assets that Kroger’s antitrust lawyers have cobbled together.” C&S currently operates 23 supermarkets and one retail pharmacy, the FTC noted, adding that if “C&S were to survive as an operator, Kroger and Albertsons’ proposed divestitures still do not solve the multitude of competitive issues created by the proposed acquisition, according to the complaint.”

Currently, Kroger operates approximately 2,700 retail stores and Albertsons runs about 2,300 supermarkets – located in 48 states and Washington, DC.

Also part of the FTC suit are the offices of the attorneys general of Arizona, California, the District of Columbia, Illinois, Maryland, Nevada, New Mexico, Oregon and Wyoming.

The FTC voted 3-0 to issue the administrative complaint and authorize staff to seek a temporary restraining order and preliminary injunction in federal district court.

The FTC issues an administrative complaint when it has reason to believe that the law has been or is being violated, and it appears to the commission that a proceeding is in the public interest. The issuance of the administrative complaint marks the beginning of a proceeding in which the allegations will be tried in a formal hearing before an administrative law judge.

All told, in the 32 months since Lina Khan was installed as chairwoman, her agency has sued to block more than three dozen mergers. Other large companies that have prevailed in court against the FTC include Booz Hamilton and U.S. Sugar. Additionally, Meta, Microsoft and United Health Group – have successfully challenged the agency’s initial decisions to block deals involving those companies.

However, this is the first retail food deal the FTC has tried to block since the proposed Whole Foods-Wild Oats merger in 2007. And while large tech and healthcare organizations typically have more free cash at their disposal and arguably more time to grind through legal delays and potential appeals, such breathing room is not as available in the highly competitive, low-margin and ever-changing retail food arena.

The FTC claims are blunt. It said that a merger, which was first announced in October 2022, would lead to increased prices for groceries and other essential household items for millions of Americans. The large federal agency added that the loss of competition would also lead to lower quality products and services, while also narrowing consumers’ choices for where to shop for groceries. For thousands of grocery store workers, Kroger’s proposed acquisition of Albertsons would immediately erase aggressive competition for workers, threatening the ability of employees to secure higher wages, better benefits, and improved working conditions.

“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years. Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, director of the FTC’s Bureau of Competition. “Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”

At Kroger’s Q4 analysts call following the release of its financials, McMullen said that he was “disappointed” but not surprised by the decision given the current political environment. “Our track record on previous mergers is clear. Kroger lowered prices, invested in associates, improved the customer experience and deepened its connections with the communities we serve, the veteran chief executive noted. We remain excited about the future of our combined companies and look forward to explaining the benefits of our merger.”

In addition to raising grocery prices, the FTC alleges that Kroger’s acquisition of Albertsons would diminish their incentive to compete on quality. “Today, Kroger and Albertsons compete to improve their stores in many ways, including offering fresher produce, higher quality products, improved private label offerings, a broader array of in-store services, flexible store and pharmacy hours, and curbside pickup services.”

The FTC charges that the deal would eliminate head-to-head price and quality competition, which have driven both supermarkets to lower their prices and improve their product and service offerings. If the merger takes place, grocery prices will increase, and Kroger and Albertsons’ incentive to improve product quality and customer service will decrease, further harming customers.

However, both retail chains have argued that a merger would bring more efficiency in many areas including pricing and technology. Kroger has stated from the outset that it is prepared to spend $500 million to lower prices at Albertsons as well as an additional $1.3 billion to upgrade Albertsons’ physical stores.

As part of the original merger agreement, Kroger would have to pay Albertsons a $600 million fee if the deal is not consummated.

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Longtime Schmidt Baking Salesman Steven Leger Dies At 67

Longtime Schmidt Baking Company sales executive Steven Michael Leger passed away February 3 at the age of 67.

Leger was born in Fitchburg, MA, to Rudolph Joseph and Rachel Blanche (Berube) Leger and was the oldest of six boys. Growing up, he excelled at sports. He threw almost 90 mph pitches in high school baseball and many said he could have gone pro with his golf skills.

Leger was married to his high school sweetheart, Michele, for 44 years and was a loving husband, father, and grandfather. He was an active and faithful Jehovah Witness for 27 years.

In addition to his wife, Leger is survived by daughters Jennifer Germroth, Brittany Ogle and Melissa Housley; son Michael Leger; brothers Brian Leger, Mark Leger, Chris Leger, Craig Leger and Shawn Leger; and 12 grandchildren.

In lieu of flowers, the family asks donations be made to jw.org.

Walmart Posts Strong Q4 Results; Will Add 150 New Physical Units

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While many other retailers are struggling to maintain the same comparable store sales levels and earnings of a year earlier, Walmart continues to be a standout among those merchants that sell food.

That continued success was illustrated by very healthy Q4 2024 sales and profits for the world’s largest retailer. Virtually every metric was strong including a 4 percent comp store gain at its more than 5,000 U.S units (including Sam’s Club and Neighborhood Markets). Total U.S. sales grew by 3.4 percent and Q4 earnings in the U.S. increased 12.9 percent to $6.1 billion for the period ended January 31. Other overall highlights included surpassing the $100 billion mark in global ecommerce sales and a 22 percent sales gain at Walmart Connect, the company’s advertising business.

For its full fiscal year, Walmart’s revenue reached a record high of $648.1 billion, and its adjusted operating income was 10.2 percent, a faster growth rate than sales. Walmart said that it currently has $9.9 billion in cash and equivalents on hand.

“Our team delivered a great quarter, finishing off a strong year,” said CEO Doug McMillon. “We crossed $100 billion in ecommerce sales and drove share gains as our customer metrics improved, even during our highest volume days leading up to the holidays. We’re proud of the team and excited about building on our momentum as we work to bring prices down for our customers and members.”

Prior to its Q4 and year-end financial release, Walmart announced that it was returning to its fundamental brick-and-mortar roots as an additional growth opportunity. It said that over the next five years, it will add 150 new stores to its fold, the first significant store expansion plan since 2017 when it shifted most of its cap-ex into digital enhancement. Earlier in 2024, the retailer said it would also remodel 650 existing stores over the next few years.

It’s been a busy two months for the company which also announced that it would acquire TV manufacturer Vizio Holding Corp. for $2.3 billion. The Irvine, CA-based firm also owns the SmartCast operating platform which currently has 18 million active accounts with a growth rate of 400 percent since 2018. Walmart believes the acquisition aligns well with the company’s goals including an opportunity to grow its retail media business – Walmart Connect.

In January, Walmart announced a 3-for-1 stock split, its first since 1999. The Bentonville, AR-based mega-merchant said all current shareholders will receive two additional shares for each share held. Those new shares were issued on February 26.

Also in January, Walmart said it would offer its U.S. store managers annual stock grants beginning in April. The grants, which could be as high as $20,000 worth of Walmart’s stock (trading at approximately $166 per share pre-split, an increase of about 43 percent over the last five years), come on the heels of an annual wage increase for the company’s top store executives from $117,000 annually to $128,000 which began on February 1.