5 things: Why Amazon is pushing grocery on Prime Day

Amazon pushing grocery on Prime Day: Amazon’s Prime Day comes with gadgets and tech deals per usual, but the ecommerce giant is also pushing users towards its grocery this year, reports Business Insider. On the days leading up to Prime Day, members can take advantage of 20% off purchases of at least $50 at its Amazon Fresh stores. The discount increases to 25% on the actual event days (July 11 and 12). Amazon is also offering 6% back to members who use its credit card at Amazon Fresh stores. Why the grocery push? The deals come as Amazon is still trying to find a path forward for its Fresh stores, with roughly 44 already opened in the U.S. since 2020. Since then, some have already closed and others were put on hold, even though CEO Andy Jassy said in February that the company has “a very significant opportunity in the grocery segment.” —Alarice Rajagopal

Breaking the $1 barrier: Dollar Tree announced last week that it plans to break free from its “dollar” marketing brand to expand its product offerings into the $3, $4, and, even $5 price ranges, with a particular focus on growing its grocery offerings. So is it a good idea? Yes, emphatically, says a retail writer for Forbes…and for three reasons. One: They’ve already played in these waters, launching a “Breaking the Dollar” campaign back in 2012. Two: Inflation. A dollar definitely doesn’t get you what it used to. And three: When has a strategy like this ever not worked? It’s a tried and true business tactic to use a low-cost business model to enter at the bottom of an existing market and then put a claim on that segment. So Dollar Tree is on the right track. Though they may have to rebrand to “Five Dollar Tree.” —Chloe Riley

An alcohol-free zone: Dollar General now has a cashierless store in Banner Elk, N.C., but, so far, the discount retailer says it has no plans to roll out the technology nationwide. But shoppers can’t just walk out with alcohol at the location. That’s because there is no alcohol available for purchase. (Because there are no humans around to verify age.) Despite the fact that there are non-human ways to approve the sale for grocery retailers, like facial recognition software, so far, Dollar General has chosen not to not install that type of system. TikTokker Palu posted a video of her experience in the cashierless store and noted it was dry, meaning no booze. Surprisingly, there was medicine on the shelves that could only be purchased by those over the age of 18. That led to an uproar on TikTok, and perhaps a surge in medicine sales at the DG. —Bill Wilson 

How the merger will disrupt grocery as we know it: While the merger deal has not been officially approved yet, both Kroger and Albertsons are making moves to prepare as if it has. In May, Albertsons hired Acme Markets President Jim Perkins to lead the planning for the creation of SpinCo., the standalone public company which will potentially contain some of the merger’s divested stores. Just two months earlier, Kroger connected with former Speaker of the House John Boehner in the hopes the Washington vet can help get the support needed to get Congressional approval for the merger deal. And Albertsons execs have a clause where they stand to make $146 million in payouts if the deal goes through. Supermarket News took a deep dive to examine the effect the proposed merger deal could have across the grocery industry. Have six minutes? Take a watch. —CR

Trader Joe’s for kids: What child doesn’t want to be just like their mom and dad? But okay, that feeling does come with an expiration date, because there is not a teenager out there who will admit to admiring either parent. However, those little ones who want to take a page out of their parents’ grocery shopping experience can do so, providing it includes trips to Trader Joe’s. Pretend City, a non-profit children’s museum in Irvine, Calif., offers a pretend police station, fire station, library, a sushi restaurant, and, yes, a kid’s version of Trader Joe’s, which comes with authentic boxes and packages from the retailer. Parents shouldn't get too excited, though, because the ingredients in those products are just filler. Tiny carts are also available to roam the aisles, and the signage is pretty close to the original Trader Joe’s logo. Even adults can play along…let's just hope they do not get carried away. —BW 

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Amazon continues to try and push its presence in grocery, offering big deals on grocery items during Prime Day this Tuesday and Wednesday. What do you think: will this work or is it a Hail Mary pass at this point? Let us know in the comments below.