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.
Barely three months ago, the CEOs of Kroger and Albertsons appeared to be in lockstep, united in their conviction that the best way forward for their companies was to come together as one supermarket company.
Instead, Rodney McMullen and Vivek Sankaran’s shared vision imploded when the grocers’ controversial merger plan crashed into a regulatory brick wall — a spectacular flameout that perhaps foreshadowed the sudden announcements on a single day this week that McMullen is out at Kroger and Sankaran will retire from Albertsons in May.
Kroger has sought to project an air of calm despite the upheaval it is dealing with, moving ahead with an earnings call just three days after its announcement on Monday that McMullen had resigned following an investigation into unspecified ethical violations unrelated to the business. The company assured investors on Thursday that it is primed for growth, laying out robust plans to invest in new stores and forecasting steady sales during the rest of the year.
Albertsons, on the other hand, quickly followed up Sankaran’s pronouncement in December that the company was financially strong by rolling out an aggressive cost-cutting program. The grocer also recently disclosed that it is closing stores and laying off corporate workers. While those kinds of austerity measures may be par for the course in corporate America, they nevertheless paint a picture of uncertainty for Albertsons as it searches for stability. Susan Morris, the company’s chief operating officer, who will take over Sankaran’s role, has a difficult job on her hands.
Could this week’s unexpected changes at the top be just the jolts Kroger and Albertson needed to take control of their futures?
In case you missed it
Uber Eats links with FreshDirect
Uber announced Thursday it will offer FreshDirect’s catalog to its customers, marking the first time the Getir-owned e-grocer is available for on-demand delivery through a third-party app. Uber Eats customers in New York City can now shop FreshDirect’s full selection, which includes fresh groceries, prepared meals and pantry items.
Grocery tax elimination one step closer in Arkansas
The state’s governor, Sarah Huckabee Sanders, announced Tuesday the Grocery Tax Relief Act, which would repeal the state grocery tax — a pledge Sanders made at the start of the year. Arkansas’ 0.125% grocery tax is the lowest among the states that tax groceries, according to Kiplinger.
Sanders also announced The Good Neighbor Act, which would lower liability barriers to food donations.
How’s foot traffic at Kroger’s banners?
Kroger accounts for about 16% of total U.S. grocery visits, but the grocer’s share of total grocery visits varies by state — and some banners are more popular than others, according to newly released data from Placer.ai. The company’s Food 4 Less and King Soopers banners led the company’s portfolio in 2024, with both chains seeing growth in visits compared to 2023, the data firm found.
Meanwhile, the Fred Meyer and Pick ‘n Save banners saw the largest dip in visits, down 2.9% and 3.6%, respectively. Kroger’s namesake banner saw visits decline 1.6%.
Impulse find
Aldi has fan gear for kids now
Calling all parents who are Aldi die-hards: Now your kids can rep the discount grocer, too. Aldi announced Wednesday its new set of Aldi Gear — branded clothing and goods for fans — launching March 19 will include its first-ever items for kids.
The kids’ selection includes pullovers rocking the grocer’s signature colors. The upcoming line will also have goodies for adults, such as vests, pullovers, T-shirts, keychains, sneakers and more, all under $20.
“Every time we drop new ALDI-branded merchandise in our Finds aisle, our fans tell us they want more ALDI Gear,” Joan Kavanaugh, Aldi’s vice president of national buying, said in the announcement. “We’re always listening. This year, we’re going big for some of our tiniest shoppers.”
