5 things: Private label is here to stay

Private label soldiers on: Private label has been gaining significant ground on national brands. In the three months that ended June 30,  private labels landed 38% of canned vegetable sales, alone, according to Numerator. The same data indicated that private-label cheese held 45% of the market and coffee nearly 15%. The shift in spending reflects a customer base that is reaching its tipping point on price. Inflation, which climbed to 3.7% in September, is better than a year ago, but millions of shoppers still face increasingly high prices in grocery stores. Grocers, take note. —Chloe Riley

One download and you’re off: All you need is a smartphone and room in your trunk for the first “artificial intelligence grocery store” that just opened up shop in Atlanta, Ga. At Green Picks Market, shoppers can do everything with just a smartphone. They can access the store using an app, scanning a unique QR code to begin their transaction. Ninety-six store cameras watch the movements of those in the stores, and the shelves monitor weight to sense what products are being picked up. “There’s no waiting in line, there’s only the one time hassle of downloading the app. Once you fill it out, you can come in and out whether you are going to the swimming pool or going to the gym,” said store owner Ismael Fernandez. Let the great robot takeover begin. —Bill Wilson

The life of one Instacart shopper: Americans have come to rely heavily on shoppers to select their groceries. Instacart, one of the largest grocery-focused apps, served more than 13 million users in 2022, according to industry publications, and employs at least 600,000 shoppers. But gig-economy workers often struggle with uncertain pay, customer demands, and the physical stress of lugging around groceries. The Washington Post followed one such shopper, who is actually living out of his car. Larry Askew, who has worked for Instacart since August 2022, has a strategy with his batches, and a lot of integrity with his shopping. “I like to reassure people,” Askew said. “Because you don't know me. You have some guy basically picking out your fruit you’re going to eat. … It’s very intimate.” —CR

What’s cool about the new Manhattan Wegmans: Wegmans just opened a new store in Manhattan, the retailer’s first, and the store has some compelling features. Only about 13% of the store’s 90,000-square-feet contains traditional grocery aisle type shopping (grocery, dairy, frozen). The rest is closer to a food hall you’d see in Eataly, with a big variety in prepared foods and workers live-prepping global cuisine. A question Forbes has is how Wegmans, which will have 110 stores when its latest one opens, will compete against grocers like Kroger, the No. 1 grocer in the country with almost 3,000 stores? Wegmans’ inventory costs on Core products will never be as low as what Kroger pays. But by focusing on Periphery products and making them a majority of the sales in the store, Wegmans can get the margin it needs. —CR

An ‘F’ for the bees: We all know bees are the keepers of the Earth. Several studies have shown the striped insects are vital to a healthy planet, so why not make sure supermarkets are kind to the little buzzers? Friends of the Earth released its 2023 Bee-Friendly Retailer Scorecard, and you might be surprised to see what grocers brought home failing marks. Giant Eagle came out on top of the list, improving its B grade in 2022 to a B . Walmart and Whole Foods did the work for a B, and Costco was average with a C. However, several grocers were given Ds or Fs, including the trendy Trader Joe’s (D), Aldi (D ), Southeastern Grocers (D), Albertsons (D-), Kroger (D-), Target (D-), Ahold Delhaize (D-), Wegmans (F), H-E-B (F), Hy-Vee (F), Dollar General (F), Publix (F), and Wakefern Food (F). Dollar General, Publix, and Wakefern all received zero points, while Albertsons, Target, and Costco allowed their grades to drop from 2022. Looks like a lot of retailers need to write “I will be kind to bees” about a thousand times. —BW

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The first Wegmans opened in Manhattan, and it is not your traditional store. Only about 13% of the store’s 90,000-square-feet contains traditional grocery aisle type shopping (grocery, dairy, frozen). The rest is closer to a food hall you’d see in Eataly, with a big variety in prepared foods and workers live-prepping global cuisine. Are we going to see a pivot in grocery to include more of these types of food halls within brick and mortar spaces?
Let us know in the comments below, or email your thoughts to the SN Staff at [email protected]. Be sure to include your full name and work title.