The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
Who’s most at risk as Amazon expands its same-day delivery service to include fresh groceries? Based on how investors reacted to the news, Instacart appears to top the hit list.
On Wednesday — the day Amazon announced it has started offering same-day delivery of perishable groceries to customers in more than 1,000 cities and towns across the U.S. and plans to bring the offering to more than 2,300 municipalities by the end of the year — Instacart’s shares fell more than 11%. By comparison, shares of Kroger, Walmart, Albertsons, Uber and DoorDash dropped less than 5% on Wednesday, with Uber’s stock decreasing less than 1%.
Instacart has made strides in repositioning itself as an omnichannel technology provider and large retail media network that can help grocers and advertisers better connect with online and in-store shoppers with offerings like smart carts. But the company still depends heavily on its legacy grocery delivery business, and Wall Street’s reaction earlier this week is a reminder that Amazon’s increasing grocery e-commerce presence could pose an existential threat.
Instacart has overcome past threats posed by Amazon. The grocery technology company found itself on shaky ground in 2017 when Amazon purchased Whole Foods Market, which at the time was one of Instacart’s largest clients — and an investor. But Instacart turned the challenge into a transformative opportunity by focusing on diversifying its client base and expanding its services.
Of course, Instacart may be less agile now that it is a publicly traded company than it was as a young startup eight years ago. As Amazon looks to claim more e-grocery ground, what will Instacart do in response?
In case you missed it
UFCW supports bill aimed at stopping price gouging in grocery stores
The United Food and Commercial Workers International Union on Thursday endorsed “The Stop Price Gouging in Grocery Stores Act,” which was introduced by Democratic U.S. Representative Rashida Tlaib.
UFCW International President Milton Jones said in a statement that the legislation would protect consumers and grocery store workers against “surveillance pricing,” in which customers could potentially be charged different prices based on demographic factors like income, race and gender.
Walmart to pay $5.6M to settle lawsuit
The mass retailer will pay more than $5 million as part of a settlement in a consumer protection lawsuit that claimed Walmart overcharged shoppers and sold products like produce, baked goods and other prepared items with less weight than displayed on the label, according to a press release from the district attorney’s office in Santa Clara County, California.
Walmart was ordered to pay $5.5 million in civil penalties and assign employees to monitor price and weight accuracy in its California stores. The retailer will also pay nearly $140,000 to cover the costs of the investigations into its operations conducted by various weights and measures departments in the state. Santa Clara County will receive almost $1.4 million, which will go to the county’s DA consumer protection fund.
99 Ranch expands Oregon footprint
The Asian grocery chain has opened its first store in Portland, Oregon, marking its second location in the West Coast state, according to a Tuesday announcement. The location features fish frying, live crab steaming, a grab-and-go hot deli and bakery, and a HK Cafe. The grocer added that a Hong Kong dim sum eatery is coming soon.
Impulse find
Aldi proves its social media savvy yet again
“20k likes and we’ll make this a reality,” Aldi wrote in a July 9 Instagram post with a teaser photo of new potential Aldi merch. The post garnered more than 29,000 likes in just two days, the discounter said in an email, meaning it’s time for Aldi to deliver.
That reality is new Aldi gear in the form of mega-viral “ugly-cute” Labubu dolls that have taken the internet by storm.
The discounter started a sweepstakes on Wednesday on Instagram that will reward 75 Aldi fans with four accessories for their monster key chains. The gear includes a tote bag, bucket hat, T-shirt and shorts — all of which sport the Aldi logo and colors, of course.
