Walmart Expands

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Walmart eyes bigger share in Texas, Florida

U.S. store openings, remodels also to include tech-driven services

Russell Redman 1 | Apr 12, 2018

Bolstering its presence in two of the country’s most populous states, Walmart has earmarked $477 million to open and remodel more than 90 stores in Florida and Texas over the next year.

By state, Texas and Florida will see the largest allocations in Walmart’s $11 billion capital spending budget for fiscal 2019. The projects also will expand some of the retailer’s latest in-store and online services, including Walmart Online Grocery Pickup, Mobile Express Scan & Go and Walmart Pickup Towers.

Walmart said Thursday that, in Florida, it has allocated about $200 million for 43 store openings and remodels. The company plans six new stores (three in Miami-Fort Lauderdale, two in Jacksonville and one in central Florida) and 37 remodels (12 in Tampa Bay, 12 in central Florida, four in Miami-Fort Lauderdale, four in West Palm Beach, three in Jacksonville, one in southwestern Florida and one in the Florida Panhandle). A new distribution center also is slated to open in Cocoa, Fla., later this year.

“Customers have told us they want the convenience of shopping how, when and where they want,” Elise Vasquez-Warner, vice president and regional general manager for Walmart in Florida, said in a statement. “And here in Florida, we’ll achieve that by building off the momentum we had last year, accelerating the rollout of customer-centered innovations, creating more than 1,000 jobs this year alone and maintaining a sharp focus on improving our store experience.”

In Florida, the enhanced customer experience will include 80 new Grocery Pickup locations in 2018, adding to the 100 locations already in the state, Walmart said. The free service enables shoppers to order groceries from Walmart online and pick them up at a nearby store without having to leave their car.

Walmart said it’s currently evaluating opportunities to bring Mobile Express Scan & Go and Pickup Towers to more Florida stores.

Mobile Express Scan & Go was recently launched at more than 10 Walmart stores in Florida and is already offered at all 49 Sam’s Clubs in the state. Through the service, customers can scan items with their mobile devices while shopping in stores, pay immediately and avoid the checkout line.

Pickup Towers are available at more than 15 Florida Walmart stores. To use the towers, customers order on Walmart.com and choose the pickup option at checkout. The high-tech vending machines let shoppers pick up their online orders in less than a minute by scanning a bar code sent to their smartphone.

Bigger in Texas

In Texas, Walmart plans to spend $277 million — its biggest capital outlay by state — on four new stores and 45 remodels.

The stores being constructed are in Fort Worth, Fulshear, El Paso and Vidor. Eighteen of the remodels are in the Dallas-Forth Worth area and northern Texas, 12 are in greater Houston and nine are in central and southern Texas.

Grocery Pickup, now at 180 Texas stores, is set to expand to about 125 more locations in the state this year. Mobile Express Scan & Go is offered at all 85 Sam’s Clubs and over 20 Walmart stores in Texas, while Pickup Towers are at 17 Texas Walmart stores. Walmart said it will look to add more Scan & Go and Pickup Tower locations in Texas over this year.

By state, Texas has the biggest chunk of Walmart’s store base, with 508 Walmart locations and 85 Sam’s Club warehouse stores, as well as 19 distribution centers.

“With the continued rollout of new innovations, Walmart is re-envisioning the future of shopping right here in DFW,” said Sonya Hostetler, vice president and regional general manager for Walmart in Texas. “Through updated stores and convenient new offerings like Online Grocery Pickup, Pickup Towers and Scan & Go, Walmart is working to save our customers time while exceeding their expectations.”

Walmart posted a 2.1% gain in same-store sales for its 2018 fiscal year ended on Jan. 31 and said the uptick reflects its efforts to improve stores and step up the rollout of innovative services for faster and easier shopping.

Nationwide, Walmart aims to open 20 new stores and remodel almost 500 stores over the year. The company also is working to bring Online Grocery Pickup to 1,000 more stores and add about 500 Pickup Towers.

The retailer’s other capital expenditure plans this year in other states include:

• California: One new store and 33 store remodels ($145 million)

• Ohio: 27 remodels ($94 million)

• Virginia: One new store and 13 remodels ($75 million)

• New Jersey: One new store and 11 remodels ($68 million)

• Illinois: 16 remodels ($56 million)

• Washington: 16 remodels ($56 million)

• Arizona: 15 remodels ($52 million)

• New York: 15 remodels ($52 million)

• Pennsylvania: 14 remodels ($49 million)

• South Carolina: 12 remodels ($42 million)

• Wisconsin: 12 remodels ($42 million)

• Georgia: 11 remodels ($38 million)

• Arkansas: Nine remodels ($31 million)

• Tennessee: Nine remodels ($31 million)

• Maryland: Eight remodels ($28 million)

• Indiana: Seven remodels ($24 million)

• Alabama: Five remodels ($17 million)

These states also will see the rollout or expansion of the Online Grocery Pickup, Mobile Express Scan & Go and Pickup Tower services, according to Walmart.

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Freight Marketplace

XPO Launches Freight Marketplace for Shippers

April 12, 2018

SHARING TOOLS        |PrintSubscribe

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XPO Connect is an online freight marketplace that is designed to give shippers visibility across freight modes. Image: XPO Logistics

XPO Logistics has introduced a cloud-based freight marketplace called XPO Connect that is designed to give shippers visibility across freight modes to improve the efficiency of the supply chain.

Through XPO Connect shippers are able to access business intelligence that can help them to purchase transportation more efficiently. For example, they are able to see fluctuations in capacity, spot rates, and load postings by geography. Shippers can also access carrier capacity, assign loads and track freight movements, using a single login to the XPO Connect platform.

The XPO Connect platform is able to integrate all modes of transportation as well, allowing shippers to have a broader view of the freight marketplace.

“We’re tireless when it comes to finding new ways to make supply chains more efficient,” said Mario Harik, chief information officer. “XPO Connect gives customers direct access to our transportation network and the predictive data that powers it. The platform provides a new level of visibility that informs better decision-making under all market conditions.”

XPO has been investing heavily in technology annually in order to develop technology systems and mobile applications including the company’s Freight Optimizer brokerage system, Drive XPO mobile capabilities for carriers, Ship XPO tools for e-commerce, and its WMx warehouse management platform.

“We’re tireless when it comes to finding new ways to make supply chains more efficient,” said Mario Harik, chief information officer of XPO Logistics. “XPO Connect gives customers direct access to our transportation network and the predictive data that powers it. The platform provides a new level of visibility that informs better decision-making under all market conditions.”

Heinen’s

Inside the most beautiful store in America

By Mike Troy – 04/10/2018

https://player.vimeo.com/video/264107032

When Cleveland-based Heinen’s Fine Foods opened a store in an old bank building three years ago it wasn’t the type of move a larger company could or would have made. However, the small family owned Heinen’s chain is able to move faster and do thing differently and faster than larger companies, as Tom and Jeff Heinen, brothers and co-owners of the 23 unit chain explain in the second episode of dunnhumby’s online reality series, The Prophets of Aisle Six. The series was created to explore how food retailers are using data and innovation to reshape their businesses and the customer experience.

In the latest episode, Jose Gomes, Managing Director of North America for dunnhumby, visited the downtown Cleveland Heinen’s store located in the historic Cleveland Trust Building, to find out how they are keeping their grandfather’s mission of delivering excellence in customer service and in food quality to a millennial generation that values experience. Against the backdrop of the spectacular, multilevel store’s rotunda with a stained glass ceiling the pair explain how Heinen’s has long used data to inform assortment decision-making but now the company is entering a new era of leveraging data to drive personalization and pricing decisions. Heinen’s, like many smaller retailers, is part of the “democratization of data,” movement that gives the company the type of decision-making abilities once reserved for larger organizations with big IT budgets.

“Being small when you deal with big data is actually an advantage,” explained Tom Heinen, Co-President of the retailer. “Big companies are like driving a cruise ship. We are in a speedboat and can change very quickly. What has really leveled the playing field for smaller companies is good data driven decisions.”

Leveraging data is especially important at Heinen’s downtown Cleveland store because it is such a unique format. The store is small at 27,000-sq.-ft. compared to the typical 42,000-sq.-ft. Heinen’s location and being in an urban area also means serving a higher concentration of Millennials who are buying different types of products and pack sizes. One of the early insights based on purchase behavior was the need to add a hot bar to accommodate the demand for prepared meals and meal solutions.

“We are not really headed to creating Blue Apron style meal kits as much as we are looking to create meal solutions for customers where they have choices of entrees and side dishes to choose from and we are going to pair them more effectively than we do now,” Tom Heinen said.

While the Heinens make extensive use of data to operate and optimize decision-making, that wasn’t the case when the brothers decided to convert the historic bank into a supermarket. That was a total, from-the-gut move, inspired by a near century long connection to the community. They recognized that a supermarket could serve as a catalyst for continued residential growth of Cleveland’s urban core and converting the bank represented an opportunistic real estate move and a way so salvage a magnificent piece of architecture.

“There were many, many people who believed downtown Cleveland could not continue the growth pattern of increased residential living without a food store option,” said Jeff Heinen, who characterized the store as an investment in downtown Cleveland.

There were about 12,000 people living in downtown Cleveland when the Heinens made the decision to open the store, well below the 20,000 residents need to support a profitable grocery operation. Today, downtown Cleveland has about 16,000 residents and continues to grow.

“As lifelong Clevelanders, we understood (a grocery store) was important to continue the momentum of people living downtown. It was our give back to the city of Cleveland because Cleveland has been good to Heinen’s,” Jeff Heinen said. “As a small, family run business we can make decisions like that. This isn’t a great business decision. This is a great decision for the city of Cleveland.”

It could ultimately be a great decision for the company as well. As Tom Heinen pointed out, the retailer now operates four of its 23 stores in Chicago, a market where a small format could create new growth opportunities. The store in downtown Cleveland gives the company, “a way to experience urban markets so if and when we decide to go into downtown Chicago we have a lot better idea about designing and operating stores there based on our learnings in Cleveland,” Tom Heinen said.

For example, in downtown Cleveland the company had to adjust to numerous operational quirks. To deliver goods trucks use a narrow one way alley and drop merchandise on one of two loading docks shared with tenants in adjacent buildings. From there, a freight elevator moves two pallets at a time to a basement where most of the food preparation is done. Products then have to be brought back upstairs to either the first or second level. The entire process is much more labor intensive that in a typical suburban location.

One area that wasn’t a challenge was persuading employees to work downtown. The store is staffed by 90 people and 55 of those positions were filled by employees who volunteered from other stores.

“As a company we believe we invest way more time, energy and money into developing the knowledge and skills of our people than the average retailer, food retailers for sure,” Jeff Heinen said. “We see people as one of the ways we truly create a differentiated shopping experience so it is very important strategically that our people have the knowledge and skills to do that.”

Tom Heinen added, “we view people as an asset to be leveraged, not a cost to be minimized.”

Produce Pallets

Produce distributor turns pallets into a competitive edge

Manufacturer uses display-ready, shared half pallets to eliminate product damage and customer complaints.

By Josh Bond, Senior Editor · April 12, 2018

Melon 1, America’s largest watermelon shipper, ships its watermelons nationwide from packing sheds and other distribution points on the East Coast. Because freshness is vital and harvest dates depend on Mother Nature, the company partnered with a pallet provider to ensure its supply chain can react quickly when needed.

The partnership goes back nearly 20 years, according to co-owner Rich Chastain, who says it plays an essential role in simplifying the supply chain. The pallet provider’s network and pooled pallets create time and cost savings, and removing the need for disposable pallets allows Melon 1 to be more efficient and more sustainable.

“In farming, sustainability is everything,” Chastain says. “Our partnership makes an enormous environmental difference for us and everyone we work with.”

For example, the Melon 1 team packed almost 440,000 pallets (CHEP,) of watermelons in 2017 and only required one person to track the shipments. Another supply chain advantage is the pallet provider’s on-site pallet storage program. Chastain says on-site storage does more than streamline the supply chain; it delivers peace of mind. Operations managers know pallets are available whenever they need them. In fiscal year 2018, Melon 1 plans to store more than 100,000 pallets at eight East Coast locations. In addition, Chastain says the pallet supplier has recently begun providing pallets for Melon 1 shipments from Central America to the United States.

From 2009 to 2017, the partnership has prevented nearly 1.7 million pounds of solid waste going to landfills, reduced nearly 1.3 million pounds of carbon emissions, and created additional transportation efficiencies through on-site pallet storage for reduced carbon emissions.

Canadian Food Retail

Canadian retailers see consolidation, import growth

Tom Karst

April 11, 2018 08:43 AM

A USDA Foreign Agricultural Service report says non-grocery retailers in Canada, particularly Costco and Walmart, have gained market share in the last five years, accounting for 20% of the retail grocery market in 2016. ( Courtesy Walmart Inc. )

Wal-Mart and Costco have made market share gains in the Canadian retail market in recent years, a new government report says.

In a report on the Canadian retail sector, the U.S. Department of Agriculture’s Foreign Agricultural Service said consolidation has fueled the shift from independent retailers to regional and national chain stores.

A relatively stronger U.S. dollar also has increased the challenges facing food retailers seeking to remain competitive, according to the USDA.

In 2016, about 58% of food sales occurred at traditional grocery stores, with the vast majority under the umbrella of Canada’s three major chains: Loblaws, Sobeys and Metro. Canada’s retail food sales totaled $73 billion in 2016, about 17% of total Canada’s retail sales.

However, the report said non-grocery retailers, particularly Costco and Walmart, have gained market share in the last five years, accounting for 20% of the retail grocery market in 2016.
Each of Canada’s major supermarkets has a discount banner, and the discount channel grew from 27% in 2011 to 36% in 2016, according to the report. That trend is predicted to grow, as discount merchandisers, such as Dollarama and Dollar Tree, continue to expand food offerings.

The report said many Canadian consumers have become bargain shoppers due to the slow economic recovery and rising food prices in 2015 and 2016. The Royal Bank of Canada has reported that 57% of shoppers carefully compare food prices and have reduced impulse purchases, according to the report.

Online grocery shopping continues to be slow to take off in Canada, despite Amazon’s presence there since 2014.

Total online retail food sales was a little over 1% in 2016, according to the report, compared to 2.5% in the U.S. Amazon’s 2017 acquisition of Whole Foods will translate to increasing online grocery sales in the coming years, according to the report.

Major Canadian retailers have had challenges with home delivery orders, and instead have encouraged in-store pick-up of online orders.

The top food retailers in Canada in 2016 were:

• Loblaw Cos. Ltd./Shoppers Drug Mart, $28.9 billion;
• Sobeys Inc. (Empire)/Safeway, $20.8 billion;
• Metro Inc., $11.1 billion;
• Costco Canada Inc., $10.1 billion; and
• Walmart Canada Corp., $7 billion.

Fruit and vegetable import growth

Canadian imports of U.S. fresh vegetables in 2016 were $1.8 billion, while fresh fruit imports totaled $1.6 billion. Retailers have enjoyed duty free access to U.S. fruits and vegetables since 1998.

Canadian consumers are graying and ethnically diverse.

There are more Canadians over 65 than under 15 years of age, according to the report, and seniors account for the fastest-growing age group.

“However, with nearly 1 in 5 Canadians born overseas, the increasing ethnic diversity of the Canadian population is reflected in retail offerings and the spread of ‘ethnic foods,’” the report.

The report said taste continued to be the driving force influencing most Canadians in retail aisles.

Freshness also is associated with quality among Canadian consumers.

“The consumption of fruits and vegetables by Canadians has increased significantly over the last decade, as more than 40% of Canadians consume fruits and vegetables five or more times a day,” the report said.

Grocery History

Grocery’s Boozy History

Going to the grocery wasn’t always a chore.

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The history of grocery begins with a dealer who sold by the gross—that is, in large quantities at discounted retail prices. A grocer in medieval England was a wholesaler, and the name is derived from an Anglo-French word having the same meaning, groser. Grocer gained widespread use during the 14th century when a group of wholesale dealers in spices and foreign produce came together to form the Company of Grocers of London, which now exists as the Worshipful Company of Grocers—a charitable and ceremonial organization in London.

Photo: Georgijevic

A shot or two might make lettuce selection more interesting.

In time, the name grocer came to refer to a trader who dealt in staple foodstuffs—like tea, coffee, cocoa, sugar, and flour—that were sold in amounts measured for personal consumption. By the 19th century, the grocer could apply for a license to sell beer, wine, and spirits—which more than likely riled the keepers of inns and taverns.

The first known use of the word grocery was in the 15th century, and it referred to the goods sold by a grocer.

Wee bene ageyne charged wyth merceyre, Haburdasshere ware, and wyth grocerye.
— Libel of English Policy, 1436

In 17th-century American English, the word was naturally extended as a name for the stores that sell groceries.

There’s still in store some shirts, women’s hose, and some bales of coarse cloth, with a parcel of hats and shoes; the best wares are disbursed for provisions … many of which were sold by me for Wampum …, in small quantities, so that the store might well be called a grocery.
— Garrett van Sweringen, letter, 1659

Perhaps influenced by the grocer’s license to sell alcohol, grocery also became a 19th-century designation for a barroom.

Almost all the roads leading to a town in America are full of houses on their sides, called “taverns,” or “liquor,” “beer and cake,” or “grocery,” stores.
— Joseph Pickering, Inquiries of an Emigrant, 1832

Mr. Jarboe was aroused from his reverie on the closing of the grocery.
—Samuel Hammett, Piney Woods Tavern, 1858

This use of the word faded away by the mid-20th century while grocery referring to a store got supersized.

By the end of the century, grocery store chains began to emerge, and in 1913 a firm in the state of Montana patented groceteria (based on cafeteria) for a self-service grocery store in which shoppers picked items themselves. The concept of the groceteria was fully realized a few years later and revolutionized the grocery store business. Previously, shoppers used to ask for or provide the grocer with a list of items they wanted to purchase and then waited for their order; now the items were picked and chosen by the shoppers of the grocery store and brought to the store’s clerk.

This new grocery store was the precursor to the supermarket, which began popping up across the United States in the 1930s. It should be noted that across the pond establishments called superstores—large supermarkets or department stores—were in business almost two decades prior to the American supermarket. The British were apparently first to give a name to a large-scale food retailing store but not to a store offering several lines of non-food merchandise: the department store originated in America during the late 19th century.

Fast Logistics Decisions

Smart and Fast Logistics Decisions at the Depot

This white paper shows why creating the best transport and logistics plan for your depot distribution is one challenge and being able to accomplish this quickly is another. By Quintiq

March 28, 2018

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