Alina Zöller on LinkedIn: Did you know that Trader Joe's is actually owned by the German discount… (2024)

One point not raised in this article: If the Kroger-Albertsons merger is rejected, where does that leave large supermarket chains trying to compete with mass retailers like Walmart and Costco, as well as Amazon? The supermarket format is at threat here. Hopefully, the FTC is working with an accurate definition of today's grocery retail market (it's not just conventional supermarkets) as it evaluates the mega-merger. Currently, the fastest-growing grocery retailers are not traditional supermarkets nor unionized operators.

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The Federal Trade Commission's bid to block grocer Kroger's $25 billion acquisition of Albertsons could benefit Walmart, a rival whose close relationships with suppliers already gives it a price advantage over other chains, investors, consultants and analysts said.Overall Walmart had a 24% share of the U.S. grocery market in 2022, according to CFRA Research. Walmart intends to focus on keeping its grocery prices as low as possible, a move that its executives said on an earnings call helps Walmart continue to draw shoppers into its 4,700 U.S. stores.Here's an analysis of what Walmart may gain from the lawsuit. Read more: https://lnkd.in/gVk7AaZ7

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🇺🇸A regional news story from our local team in North America 🇺🇸 The story discusses changes in the US Grocery landscape over the past 20 years, it is no longer dominated by supermarket grocers; it is now dominated by “national/discount grocers” including Walmart, Costco, Aldi and Amazon/Whole Foods, who now have roughly 66% U.S. grocery share.The article also suggests that the best angle for traditional grocers to win back the share they lost is to offer lower prices and to protect union jobs (discounters are non-union employers).Most interestingly, the article suggests the primary reason Kroger and Albertsons are merging is to achieve these two outcomes: lower retail prices and more union jobs.A stronger Kroger will be better able to lower prices even more than they already have, to better compete with Walmart, Costco, Aldi Amazon/Whole Foods and other national / discount grocery peers. ❓So what does this mean for our supplier clients❓ Senior Consulting Director Tom O'Connor says,"CPG manufacturers need to prepare for their negotiations with Kroger, whether the Albertsons merger is approved or not. Kroger has spent about $535 million on merger-related fees since agreeing to acquire Albertsons in late 2022, according to filings with the SEC. Albertsons has spent $329.4 million. They will seek investment from suppliers to compete with national discount grocers to offer lower prices and recoup merger investments."The article doesn’t specifically say that Kroger will lower prices by pressuring suppliers for more investment by or negotiating lower costs from suppliers, but we can assume one of the ways Kroger will lower prices to shoppers is through better prices and terms from suppliers."To ensure your team in North America is ready for their negotiations with Kroger contact our local experts today at info@totalnegotiation.com_____________________________________________________✅ ✅ Transform your commercial outcomes with capability and consulting support from Total Negotiation Group. With a global footprint and a wealth of experience across category and channel, revenue growth management, customer planning, selling and negotiation, we are the trusted partner of the world’s largest FMCG manufacturers. Find out why our partners trust us by contacting one of our experts today at info@totalnegotiation.com✅ ✅Let's create value together!#TotalNegotiationGroup #FMCGValueCreators #SupplierPartner #TNGhttps://lnkd.in/dr6sjPQn

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Why do Grocers Merge and Consolidate? First, I sincerely doubt that this level of scrutiny has happened in the past with Canada’s grocery sector. While no one likes regulations. It’s interesting to see how the US deals with consolidation and the fear of higher prices and wage suppression dynamics. This is what riles Canadian Consumers.However, it also speaks to buying power in grocery must have its ceiling. How do you grow? You grow organically with new stores which means you’re competing and have to fight for sales growth or you acquire a competitor and it’s less friction. So is consolidation in grocery a strategy to 1. reduce costs and increase a bigger organizations profits or 2. improve the customer’s experience and lower their cost? Based on my real world experience the obvious answer is number one! #retailing #strategy #ceo #technology #grocery Gary Newbury, Supply Chain Performance Improvement Fred Schofield Jeff Sward

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Exciting developments in the grocery industry as Southeastern Grocers completes the divestiture of Fresco y Más to Fresco Retail Group. Aldi's acquisition of Southeastern Grocers, including Winn-Dixie and Harveys Supermarket, is on track, expected to finalize in H1 2024. This strategic move aligns with Aldi's broader expansion plans, having opened four stores this year. Meanwhile, Tyson Foods breaks away from CVS Health's Caremark, opting for the cost-effective alternative Rightway. Will other Fortune 100 companies follow suit? #GroceryBusiness #RetailNews #HealthcareTrends

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Woolworths spun off a $9 billion business after executing the perfect combination of investment strategies.They used two common strategies to quickly control the market and build a strong moat:- Horizontal investments to roll up market share- Vertical investment strategy to build the moat🔄 Roll Up Market ShareDan Murphys was the first acquisition. They only had 5 stores but the goal was clear - gain market share through discount prices.Dans had huge growth but Woolworths realised that people would pay a premium to get their alcohol where they get their groceries.So they opened BWS stores right next door to Woolworths.As consumers became more interested in unique and high-quality wines, Woolworths looked to Cellarmasters.The involvement of experts in selecting the wines attracted wine enthusiasts that BWS and Dans couldn't.They now have the market covered, discount prices, convenience and quality customer service.🏰 Build The MoatIn an effort to provide an offering others couldn't, they acquired wine brands and on demand delivery providers.Paragon Wine Estates is a growing collection of premium wine brands that Endeavour has acquired and you can't get them anywhere else.As people increasingly used on-demand delivery apps, Endeavour saw the opportunity to control this distribution channel through JimmyBrings & Shorty's.They now have wines you can't get anywhere else with a distribution channel that's unmatched. In 2021 Woolworths spun off Endeavour Group, and it's easy to see why it's currently valued at $9b.______If you're interested in learning more about M&A strategies, join me for my FREE workshop next week, link in comments 👇

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I have always been fascinated by grocery stores, especially how the concept/offering has continued to morph over the decades. PERSONAL EXPERIENCES* I have represented several grocery chains and real estate developers who build/own grocery anchored retail properties to negotiate leases and conduct property sales.* My interest in the sector began when I worked for the Randalls grocery chain in high school when it was independently owned by the Onstead family (Walmart was not yet viewed as a competitor); later did a graduate school research project with their corporate marketing department; and ultimately represented Randalls with their retail real estate in Houston and DFW (Tom Thumb brand) after it was acquired by Safeway. * Today, Randalls is one of 20 well-known grocery store “banners” owned and operated by Albertsons, the fourth largest grocery retailer in the US. * Albertsons and Kroger are attempting to complete the largest supermarket merger in US history ($24.6 billion); the merger’s fate is now in the hands of a federal judge.DIFFERENT TYPES OF GROCERS* Supermarkets: Large stores offering a wide range of products.* Specialty food stores: Focus on specific types of food like organic and gourmet items.* Convenience stores: Smaller stores providing quick access to everyday items.* Warehouse clubs: Membership-based stores like Costco offering bulk products at lower prices.* Discount grocers: Stores like Aldi, known for lower prices.* Natural and organic stores: Chains like Whole Foods focusing on health-conscious consumers.* Ethnic and international markets: Stores catering to specific cultural and ethnic preferences.* Online grocery retailers: Companies like Amazon Fresh and Instacart offer convenience by delivering groceries directly to a customer’s door.(Source: GourmetPro).GROCERY HISTORY/TRIVIA* When Barney Kroger opened his first store in Cincinnati in 1883, people needed to make multiple stops to complete their grocery shopping. Kroger placed all food items in a single location, a “super market.”* A&P was the largest grocer in the 1920s and America’s top retailer into the 1960s while supermarkets expanded across the country. Its sales exceeded those of any other retailer, including Sears and Woolworth.* When the stock market crashed in 1929, Kroger peaked with 5,575 stores … more locations than the new combined Kroger-Albertsons would have. * King Kullen of Queens, NY, founded in 1930, is often cited as the first true “supermarket” since it provided five key features: separate departments, self-service, discount pricing, chain marketing, and volume dealing. * Certain chains dominated in regions (e.g., Safeway west of the Rockies); some chains dominated in cities (e.g., Randalls in Houston); and some single-store chains thrived.https://lnkd.in/gz_Mx8hg#commercialrealestate #cre #grocery #supermarkets #retailrealestate #houstonrealestate #restaurants #leasing #tenants #stnl

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The FTC is describing an industry that we haven’t seen in decades. Scott Moses, a retail sector strategy specialist focusing on M&A and divestitures at Solomon Partners, goes LIVE on Bloomberg: "The grocery industry is radically different than the one that the FTC describes. It's not just supermarkets, but supercenters and club grocers, discount dollar and drug grocers, specialty, ethnic, and online grocers, and, yes, supermarket grocers as well."See the full interview at https://lnkd.in/gmmQsHFK.#krogeralbertsonsmerger #krogeralbertsons

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FLICKINGER ON Reuters: "The FTC challenge to Kroger's acquisition of Albertsons on antitrust grounds just makes Walmart stronger."Siddharth Cavale and Jessica DiNapoli correctly point out that Walmart's close relationships with suppliers already give them a price advantage over other chains. One factor in Walmart's success has been its buying power with major food and household staples suppliers, such as Procter & Gamble and Conagra Brands. Walmart alone already accounts for 15% of P&G's total annual sales to retailers, and 28% of Conagra's.I am also quoted as saying, "If the deal fails following the FTC's challenge, companies that make consumer products like Tide detergent and Huggies diapers will continue to be beholden to Walmart."The implications are clear: the FTC's move not only impacts Kroger and Albertsons, but it also sets the stage for Walmart's continued reign. Link: The article is featured on Yahoo Finance! today:https://yhoo.it/3OZjAvG Article written by @Siddharth Cavale and @Jessica DiNapoliYahoo Finance National Grocers Association #FTC #KrogerAlbertsonsMerger #Antitrust #Walmart

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The Krogers' CEO Rodney McMullen lists off why grocery prices are so high. I call bullsh*t on him and the Albertson's folks. With all the price fixing by large corporations that negatively affect the family bottom line, this is the whopper of the summer, especially since a pricing exec admitted to raising prices above inflation. #RodneyMcMullen also says that Krogers and Albertsons have tomerge because they are too small in comparison against Walmart. Perhaps the disadvantages are in the talents of the Board of Directors and in the C-suites of Kroger's. Kroger's is one of the largest grocery retailers in the United States with more than 2,700 stores across 20 supermarket banners and $159 Billion in annual revenue. With that kind of market clout, the company should be able to get best pricing on just about everything it touches. And yet they scream in painful agony that they are unable to compete. (wailing and beating of breasts) This is the funny part. You know who can outcompete Krogers? #WinCo. If you have both WinCo and Kroger's, or a Kroger's banner store near you, do some price comparisons. WinCo has the lowest prices in general.Winco has only 140 or so stores and is one of the largest employee-owned stores in the USA with annual revenues of $2 Billion. But I will bet you that most items sold at WinCo are cheaper than Krogers. Walmart, Albertsons, (owned by Albertsons) or Lucky Stores which is owned by Kingswood Capital Management which has about 200 total stores. Funny enough, KCM also owns #FoodMaxx which specializes in value grocery shopping, with lower prices than Lucky's and Kroger's. Not a bad play given the income disparities in communities around California.I hope the FTC denies this merger. We know where the costs arise from. Ginormous out of proportion salaries, generous executive level benefits, investor dividends and more. Kroger investors should be asking McMullen why does WinCo outcompete Kroger's? Let me point out that WinCo employee profit sharing is legendary on the West Coast. Some WinCo employees who have worked for 25 years already have up to a million dollars or more in profit sharing and retirement. WinCo also makes a point of owning every piece of property it operates on, and then some. WinCo does NOT take credit cards. How about that? Simple steps to profitability? WinCo has its own distribution pipelines like Kroger, and also has WinCo branded goods on the shelves and in the freezers. Like Kroger. Maybe fire Rodney McMullen as an ineffective CEO, instead of merging Kroger's with Albertsons. Just an idea. Of course Rodney wouldn't be getting his pudding money. Poor Rodney. #grocery #foodprices #foodinflation #inflation #profits #mergers #Krogers #Albertsons #FTC #liar https://lnkd.in/dB4QuJH5

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