Retail Intel Weekly: COVID-19, Social Justice & More from Amazon, Kroger

COVID-19Wrestling with an ongoing surge in online orders resulting from the pandemic, Amazon is reportedly delaying its annual Prime Day online sales extravaganza even longer. According to CNBC, leaked internal Amazon emails indicate the e-tail giant is now targeting Monday, Oct. 5, as the starting date for the 2020 edition of Prime Day.Lowe’s is partnering with DuPont Safety Solutions to donate rolls of fabric to businesses across the U.S. to be turned into protective gowns that will be given to frontline medical workers and first responders. Ahold Delhaize’s Stop & Shop is the latest retailer to phase out its pay increases to hourly workers amid the coronavirus pandemic. Dubbed “appreciation pay,” the raises were instituted in March for employees in Massachusetts, Rhode Island, New York, New Jersey and Connecticut, and were extended in May to last through July 4.Costco reported a 0.4% increase in shopper traffic for June, marking the first time the retailer has seen store traffic growth since March, according to senior vice president, financial planning and investor relations, David Sherwood, in a prerecorded, July 8 sales update. He added that the pandemic continues to cause sales, comp traffic and ancillary departments (e.g. the food court, gas and photo) to under-perform. In addition, e-commerce was up 86.7%. The strongest departments in June were food and sundries, while fresh food like meat and produce as well as hardlines including appliances, hardware and health/beauty also saw relative boosts. Costco reported net sales of $16.18 billion for June (i.e. the five weeks ending July 5), an increase of 11.1% from $14.57 billion last year. For the 44-week period that ended July 5, the company reported net sales of $136.37 billion, an increase of 8.1% from $126.13 billion during the similar period last year.SOCIAL JUSTICEWalmart has partnered with Hallmark Cards' Crayola to exclusively sell a 32-pack of crayons including 24 "Colors of the World" representing global skin tones designed to mirror and promote the representation of the growing diversity in the world, as well as four hair and four eye color crayons. Online pre-orders sold out before the pack hit stores for back-to-school season on July 6.CVS Health has pledged $600 million over five years to address racial inequality. The money will help “advance employee, community and public policy initiatives that address inequality faced by Black people and other disenfranchised communities,” the retailer said. Other retailers have taken similar steps, including Southeastern Grocers and its charitable arm, the SEG Gives Foundation, which have launched the Romay Davis Belonging, Inclusion and Diversity Grant Program to award grants to help address racial disparities in health care and food insecurity to nonprofit organizations in communities across the grocer’s seven-state Southeast market area.Target, Walmart, Amazon and Nike (a team sponsor) are removing Washington Redskins merchandise including jerseys, T-shirts and jewelry from stores, adding to pressure on the National Football League team to change its name, widely considered a racial slur against Native Americans.DRUGSTORESWalgreens and Chicago-based VillageMD will roll out 500 to 700 full-service doctor offices co-located at Walgreens stores in the U.S. following a highly successful trial that began last year. The “Village Medical at Walgreens” physician-led primary care clinics will open in more than 30 U.S. markets in the next five years, and the intent is to build hundreds more thereafter. The clinics will be staffed by more than 3,600 primary care providers, who will be recruited by VillageMD. This rollout follows a trial with five in-store clinics in the Houston market.WALMARTWalmart later this month will launch its own subscription program called Walmart+, charging $98 a year (undercutting Amazon's $119 Prime cost) for same-day delivery of groceries and general merchandise, discounts on fuel at Walmart gas stations, and early access to product deals, according to Recode. Reports indicate the service will eventually also include video entertainment.The retailer is also preparing to start selling health insurance plans, as indicated by job openings listed on its careers website for “Walmart Insurance Services LLC.” The job posts say the company is looking to hire insurance agents in the Dallas area to sell supplemental Medicare insurance.Walmart is implementing changes toward greater sustainability by strengthening its sourcing requirements for products that contain paper and pulp sold in its stationery departments, for both private label and national brands. All products, excluding wood pencils, must be made from either recycled material, virgin fiber certified to standards of the Forest Stewardship Council (FSC), Sustainable Forestry Initiative (SFI) or Programme for the Endorsement of Forest Certification (PEFC), or a mix of recycled and certified virgin fiber.AMAZONAmazon is opening a fulfillment center and a delivery station in chief rival Walmart’s home state. The e-tail giant’s 825,000-square-foot fulfillment center in Little Rock will be its first in Arkansas. The facility, slated to open in 2021, will occupy 80 acres at the Zeuber Road site at the Port of Little Rock. Amazon is also planning to open a new 85,000-square-foot delivery station, its second in Little Rock, in late 2020. Delivery stations power the last mile of Amazon’s order fulfillment process. Packages are transported to delivery stations from Amazon fulfillment and sortation centers, and then loaded into vehicles for delivery to customers. Amazon is also pushing further into physical retail, planning to open cashier-less Amazon Go Grocery stores in Redmond, WA, and Washington D.C., and conventional grocery stores, in North Hollywood, CA, and the Chicago suburbs Oak Lawn, Schaumburg and Naperville, according to The Seattle Times. Earlier this year, Amazon opened two physical locations in California, in Woodland Hills and Irvine, which were expected to be the first of its conventional grocery stores. However, both locations are currently focused exclusively on fulfilling grocery delivery orders that have surged during the COVID-19 pandemic. As of Sept. 1, Amazon is requiring U.S. sellers to display their business name and address on their public profile to help consumers (and brands) track sellers they suspect are listing counterfeit or unsafe goods.SUPERMARKETStuart W. Aitken, senior vice president of alternative business and chief executive officer of Kroger's data analytics subsidiary 84.51˚, will become the retailer's chief merchant and marketing officer on Aug. 1. He succeeds senior vice president and chief merchant Joe Grieshaber, who is retiring on Aug. 15 after 37 years with the company. Kroger senior vice president and chief information officer Yael Cosset will take over 84.51˚.Kroger has hired Dentsu Aegis Network as its first integrated media agency of record as part of the retailer's "Fresh for Everyone" rebranding campaign. The fresh@dentsu team will be responsible for Kroger's media planning and buying and will also evaluate the retailer's sponsorships.Out-of-home advertising company Vibenomics is partnering with Kroger to provide in-store audio ads that will strategically target customers at specific times based on weather and local events. The network will begin broadcasting in Kroger stores on July 20 and the retailer will work with Vibenomics to determine which categories, brands or specific products to promote.Publix pharmacies in Florida can now refill pet prescriptions for in-store pickup, or delivery to homes within a 5-mile radius of a pharmacy for medications that don’t require refrigeration. Home delivery incurs a $5 fee. Those ordered from Sunday to Friday will be available for next day pickup. Available medication categories for pets include allergies, antibiotics, arthritis and anti-inflammatory, bronchitis, ear, endocrine, heart failure, heartworms, flea and tick, motion sickness, dry eye and seizures.

P2PI MEMBERS

JOIN P2PI

You May Also Like

Retail Radar: Walgreens Pilots New Formats; Walmart Adds NBCUniversal to Its Partner Lab

Retail Radar: Walmart Canada Marks Milestone, Makeover