Retail Intel Weekly: Kroger, Target & More

MASSWalmart has dropped the $35 minimum order requirement for its 10-month-old Express Delivery service. Piloted last April and rolled out last May, Express offers home delivery for a wide assortment of groceries and other products from Walmart in less than two hours for a $10 cost on top of the usual delivery fee. The latter fee is waived for Walmart+ members, who as of December 2020 also have not had to meet a $35 delivery order minimum on orders of a range of items excluding groceries. The $35 minimum order size remains in effect for Walmart’s free curbside pickup service; standard delivery service, which carries a $7.95 or $9.95 fee per delivery; and Walmart+ delivery of groceries and similar items, with free unlimited delivery for a $98 annual or $12.95 monthly fee.Walmart is continuing its support of U.S. manufacturing with its latest pledge to spend $350 billion in the next 10 years on items made, grown or assembled in the U.S., supporting an estimated 750,000 new American jobs, according to the retailer. The retailer had committed $250 billion to the cause in 2013. The latest effort will include an “American Lighthouses” concept intended to bring together key stakeholders, including manufacturers, in specific regions of the country to identify and overcome top-down barriers to U.S. production. In addition, Walmart estimates it will avoid 100 million metric tons of CO2 emissions by sourcing closer to its customers.Target reported its 2020 revenue grew by more than $15 billion, which is greater than the mass merchant's total sales growth during the prior 11 years. The mass merchant's total revenue in 2020 was $93.6 billion, growing 19.8% compared to 2019, according to a media release from Target. Total revenue for the fourth quarter (ended Jan. 30) grew 21% to $28.3 billion, and comparable sales grew 20.5%, led by a 118% bump in digital sales. For more highlights, see the infographic below.Building on its record 2020 financial performance, Target said it will invest $4 billion annually during the next several years to accelerate new store openings, remodel existing stores, enhance fulfillment services and strengthen its supply chain. Among its plans, Target: is testing a new type of facility — called a sortation center — in Minneapolis to add capacity to its fulfillment operation and further scale its stores-as-hubs model. It expects to open five more of the centers in 2021. plans to open 30 to 40 new stores annually to meet community needs in urban centers, college campuses and dense suburban cities across the country. will let shoppers pick up adult beverages via Drive Up curbside pickup in 800 more stores in the next few months following a successful initial trial in hundreds of stores.Meijer will host a supplier diversity event in May, giving diverse-owned businesses nationwide the opportunity to showcase their offerings for Meijer merchants. The event will be held May 4-6 and will focus on the beauty and personal care, over-the-counter and wellness, general merchandise and grocery categories. Certified minority-, LGBTQ-, woman-, veteran- and disability-owned businesses with retail-ready products in those categories can apply by March 8 via rangeme.com/meijerdiversity. Once applications for the event are submitted, Meijer teams will review and select the vendors they would like to meet at the virtual summit. The mass merchants held its first virtual Supplier Diversity Summit in the fall.SUPERMARKETKroger executive vice president and chief operation officer Mike Donnelly is retiring after 42 years with the retailer, effective later this spring. A succession plan will be announced at a later date, according to a media release from Kroger. Donnelly began his career as a clerk at Fry's Food Stores in California in 1978. He rose through the ranks in his tenure at the retailer, and was appointed to his recent position in 2017. As COO, he is responsible for operations, merchandising, marketing, supply chain, manufacturing and Kroger Health. Kroger reported it delivered $132.5 billion in sales in 2020, compared to $122.3 billion for the same period last year. Excluding fuel and dispositions, total sales grew 14.2%. The company also recently disclosed its private labels exceeded $26.2 billion in sales last year and its total digital sales more than doubled, growing 116% YOY and topping $10 billion in fiscal 2020. "We finished fiscal year 2020 with strong sales and earnings, as heightened demand for fresh, convenient food and meal solutions across modalities, including in store, pick up and home delivery, continued throughout the fourth quarter," said chief executive officer Rodney McMullen.Wakefern Food Corp. recently promoted Karen Meleta to chief communications officer. Meleta has served the company as vice president of consumer and corporate communications for 13 years. In her new role, Meleta will continue to oversee all aspects of Wakefern’s communications, public relations and reputation management.Albertsons Companies kicked off its annual Monopoly collect-and-win game on March 3, about a month later than its normal start date. However, the retail giant invited shoppers to pre-register beginning on Feb. 17, as just one way the program looks different this year. Also new, the game no longer requires a physical gameboard; free groceries for a week, month or year will be awarded to around 200 winners each week; and every ticket contains some sort of reward (either a prize, special offer or tokens for a sweepstakes). Full article on the program to come.Ahold Delhaize has detailed new health and sustainability goals as part of a purpose-driven strategy to enable shoppers to make healthier choices, create greater product transparency, eliminate waste and take bold climate action, all in support of developing a more sustainable food supply chain.DRUGSTORESWalgreens is expanding its digital health platform, Walgreens Find Care, to include 11 new and four expanded collaborations with service providers, offering easier access to care during the COVID-19 pandemic. The new and expanded services span regional health systems and leaders in diabetes healthcare technology, hearing, vision, at-home COVID-19 testing, colon cancer screening, lab testing, mental health, musculoskeletal pain and non-surgical back and neck rehabilitation. With these additions, individuals can now access more than 45 national and local healthcare service providers through Walgreens Find Care.DOLLAR STORESDollar General is taking steps to find a potential successor to chief executive officer Todd Vasos, people familiar with the matter told media outlets recently. While no formal decision or announcement has been made about Vasos stepping down, Dollar General has started conversations with headhunting firms and is considering candidates, according to the sources, which requested anonymity because the matter is confidential. Dollar General chief operating officer Jeff Owen is under consideration, one of the sources added.Dollar Tree plans to open 200 Family Dollar stores, 400 Dollar Tree stores and renovate 1,250 Family Dollar locations this year. The new Family Dollar stores will comprise "combination store" formats and "H2" stores, which have improved merchandise offerings, including a Dollar Tree $1 section, and more freezer and cooler doors, according to Path to Purchase Institute-sister publication Chain Store Age. First piloted in 2019, the combination store format combines the Dollar Tree and Family Dollar banners under one roof and is designed to serve small towns and rural communities with populations of 3,000 to 4,000 — markets where the company would traditionally not open a Dollar Tree store alone. (See video below.)

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