Publix to relaunch GreenWise, its specialty and organic stores

Mar 31, 2017, 4:06pm EDT Updated Mar 31, 2017, 4:14pm EDT

 

Ashley Gurbal KritzerSenior ReporterTampa Bay Business Journal

Publix Super Markets Inc. is planning to relaunch its organic grocery concept known as GreenWise.

The Lakeland-based grocer said Friday that it will open its next GreenWise store in Tallahassee in late 2018 and "aggressively look" for additional GreenWise locations.

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Publix Super Markets Inc.'s GreenWise store in South Tampa

NOLA LALEYE

The GreenWise concept initially launched as an all-organic concept in the mid-2000s, but only built three of the specialty stores. One of the locations is in Tampa's Hyde Park; the other two are in South Florida. Instead, Publix switched its focus to hybrid stores that blend the GreenWise concept with its traditional grocery stores, like the one that was rebuilt on St. Petersburg's Fourth Street North in 2014.

The GreenWise store in Hyde Park features a large prepared foods selection with a pizza oven, a coffee and gelato bar, expanded bakery area and an expansive selection of organic and natural foods.

"We are committed to being the retailer of choice for consumers who are looking for specialty, natural and organic products,” Kevin Murphy, senior vice president of retail operations, said in a statement. “Over the past several years, we have gained valuable insights from our existing GreenWise locations. By combining these learnings with customer feedback and market trends, we are better positioned to deliver on our vision of being the best at serving the evolving lifestyles of today’s consumer.”

The news comes as Sprouts Farmers Market Inc. (Nasdaq: SFM) is launching its own aggressive push into Publix territory. Phoenix-based Sprouts, an organic and specialty grocer, recently opened its first Florida store in Tampa's Carrollwood area and has confirmed plans for additional stores in South Tampa, Sarasota and Palm Harbor.

Publix in recent years has made strides in increasing its selection of natural and organic offerings, likely cutting deep into Whole Foods Market Inc.'s market share. Other mainstream grocers, including Kroger Co. and Walmart Stores Inc., as well as German discount grocer Aldi, have also added natural and organic items.

Then GreenWise concept could help set Publix apart as it expands in Virginia and North Carolina, where Wegmans Food Markets Inc. is also expanding.

Kroger plans 55 new stores and about 175 major remodels in 2017.

Kroger trims new-store plans by 35%

Parallels widespread slowdown in development as retailers invest in remodels, digital

Mark Hamstra 1 | Mar 30, 2017

Kroger Co. plans a 35% reduction in new-store development, store expansions and relocations in 2017, with 55 projects planned, versus 85 in 2016, according to its annual 10-K report filed with the Securities and Exchange Commission this week.

The filing confirmed the Cincinnati-based company’s previous projections that it would trim capital expenditures by up to about 13%, to a range of $3.2 billion to $3.5 billion, compared with $3.7 billion in 2016. The company previously had said it would slow new-store development in 2017, but had not disclosed more specific plans.

The company said in the 10-K filing that it expects square footage to increase by 1.8% in 2017, compared with 3.4% in 2016.

In addition to the 55 planned new stores, expansions and relocations, the cap-ex plans would also include about 175 major remodels, plus investments in digital, technology and other areas.

“Capital expenditures in 2017 will be focused on sales-generating  initiatives, remodels, upgrades to our logistics network and merchandising systems and digital and technology initiatives,” Michael Schlotman, EVP and CFO, said in a recent earnings conference call.

The cutback in new-store development parallels slowdowns in new-store development among other major players across the industry, including at Walmart Stores and Whole Foods Market, as many observers see the industry as being over-stored.

Whole Foods, which spent $716 million on capital expenditures in fiscal 2016, or 4.5% of sales, said it would spend about 4% of sales on cap-ex in fiscal 2017, as it continues to slow down its new-store development. In 2016, Whole Foods opened 25 new stores and relocated three, versus 32 new stores and six relocations in 2015.The Austin, Texas-based company said it had opened 11 new stores in the first quarter of fiscal 2017 and relocated two stores in Philadelphia and Winter Park, Fla., where the replacement stores are nearly twice the size of their predecessors. Three more relocations are planned for 2017, the company said.

Walmart, meanwhile, last October detailed its plans to scale back its capital expenditures and new-store openings. The company projected capital expenditures in the U.S. (excluding Sam’s Club) of $6.1 billion in the current fiscal year (fiscal 2018), versus $6.4 billion in fiscal 2017, which ended in January, and $6.8 billion in fiscal 2016.

Walmart’s expenditures reflect a sharp decline in new U.S. supercenters — 35 in the current fiscal year, versus 60 last year and 69 in the preceding year, and an even steeper decline in small-format stores, with 20 planned in the current fiscal year, versus 70 last year and 161 in fiscal 2016.

Sprouts Farmers Market, one of the fastest-growing food retailers in recent years, is also moderating its store-opening pace in 2017 and beyond. The company opened 36 new stores in fiscal 2016, and has 32 new stores planned for 2017. Sprouts said it expects to open about 30 new stores per year going forward.

The Phoenix-based company projected cap-ex spending at $155 million to $165 million in 2017, compared with $180.8 million last year.

One company that is bucking the cap-ex cutback trend is Lakeland, Fla.-based Publix Super Markets, which is projecting $1.85 billion in cap-ex in 2017, versus $1.44 billion in 2016. Spending last year by the relatively fast-growing retailer included the construction of 32 new supermarkets — including seven replacement stores — and 156 remodels.Jose Tamez, managing general partner at Austin-Michael Executive Search, Golden, Colo., said the slowdown in new-store development will force many retailers to rethink their organizational charts, and is likely a force behind some recent staff cutbacks at large retail chains.

“It ends up affecting how companies define themselves and position themselves for the future,” he told SN, citing the increased focus on e-commerce and the in-store experience. “When they reformulate their strategy, they look at the organizational chart, and they say, ‘Does our organizational chart look like this strategy?’”

Online Grocery Shoppers Skew Younger, Male: NPD Report

Dislike for grocery shopping, postponing life events to blame

March 29, 2017, 02:01 pm

While 52 million Americans currently shop online for their groceries, they are more likely to skew younger and male, according to new research from The NPD Group, based in Port Washington, N.Y.

NPD's new report, “The Virtual Grocery Store,” notes that men are more likely to think of grocery shopping as a “necessary evil,” and that online grocery helps take the sting out of the process. Additionally, many younger adults are delaying such life events as marriage and starting families. This could explain why more than 40 percent of primary grocery shoppers are men, and that 60 percent of men age 18 to 44 have purchased groceries online.

“Men tend to make grocery shopping a mission and spend less time in brick-and-mortar stores compared to women,” NPD noted. “Men will also buy fewer items on each trip and will likely leave the store if they can’t find an item. … For these reasons, online shoppers are disproportionately men who are looking to avoid physical trips to the store.”

Members of Amazon.com’s Prime subscription program – which provides free two-day delivery on products and access to AmazonFresh grocery delivery subscriptions, among other amenities – also comprise a large online grocery shopping group, the report finds. And with 31 million households subscribing to the service, it makes sense that 52 percent of Prime members shop for groceries online.

Another large online grocery shopping group is Amazon Prime members. Since some 31 million households have an Amazon Prime membership or access to one, it makes sense that 52 percent ofAmazon prime members shop for groceries online. Amazon already dominates online grocery shopping; add in the quick delivery benefit that comes with an Amazon Prime membership, and it’s an offer too good to refuse. 

“Although online grocery shopping lags other ecommerce industries in terms of development, it is growing and the groups that are the most active online grocery shoppers are large,” said Darren Seifer, NPD food and beverage industry analyst.  “Now is the time to start developing test programs if you lack an ecommerce program, or to expand your current services. Keep in mind: It’s about saving consumers time using an online presence for them to get the foods and beverages they’re accustomed to consuming.”

Disrupting the $8 Trillion Logistics Industry

Turvo announced the launch of its revolutionary "collaborative logistics" platform that empowers shippers, brokers and carriers to work together in real-time across the entire supply chain, the first real-time collaborative logistics platform that connects anyone, anywhere to move things. By 24/7 Staff

March 30, 2017

Turvo has announced the launch of its revolutionary "collaborative logistics" platform that empowers shippers, brokers and carriers to work together in real-time across the entire supply chain.

The company also announced it has raised $25 million in Series A financing from top-tier investors.

Logistics is an $8 trillion-dollar global industry(1) plagued by complexity and chaos – and it has been for centuries.

Currently, companies manage shipments using pen and paper, spreadsheets, and outdated software with countless redundant, manual tasks.

Communication is done through back and forth phone calls, emails, and faxes which is inefficient and error-prone.

"Turvo brings order to the chaos by connecting shippers, brokers and carriers to collaborate in real time, helping them take the time and cost out of shipping," said Turvo CEO, Eric Gilmore, who co-founded the company.

Eric continued, "Logistics impacts every aspect of our lives and yet companies that need to move things from A to B still use archaic technology and operate in silos."

Turvo's uniqueness lies in its groundbreaking connected cloud platform that provides real-time visibility of shipments, AI-powered productivity tools, and secure collaboration that breaks down traditional organizational silos.

While other solutions focus on more narrow aspects of logistics, such as on-demand trucking, freight forwarding, or track-and-trace of goods, Turvo spans the entire supply chain from orders and shipments to invoices and payments.

Based in Silicon Valley and with offices in Hyderabad, India, Turvo's founding team and investors have an unrivaled track record of building revolutionary products and companies. 

The founding team includes:

• Eric Gilmore, co-founder and CEO. Previously, Eric was Vice President of Retail Products at Quotient Technology where he created the Retailer iQ platform, was Director of Communications for Microsoft CEO Steve Ballmer and then became a product executive in Bing's search business.
• Sai Nagboth, co-founder and CTO. Previously, Sai was Director of Retail Products at Quotient Technology for the Retailer iQ platform and was an engineering leader and principal architect at Accenture.
• Jeff Dangelo, co-founder and COO. Previously, Jeff was Vice President of Sales at MegaCorp Logistics and, prior to that, a member of the sales leadership team at Total Quality Logistics (TQL).

Turvo's Series A funding was led by Activant Capital with participation from existing investors Felicis Ventures, Upside Partnership, Slow Ventures and Tony Fadell, inventor of the iPod, iPhone, and Nest.

Other investors include: Aaron Levie, co-founder and CEO of Box; Kevin Nazemi, co-founder of Renew.com and co-founder of Oscar Insurance; and Ravi Venkatesan, Chairman of Bank of Baroda and former Chairman of Microsoft India.

Founders of Turvo: Eric Gilmore, Sai Nagboth & Jeff Dangelo

"Turvo is one of those rare companies with an opportunity to revolutionize a global industry," said Steve Sarracino, founder and Managing Director of Activant Capital. "Turvo has the total package of an incredible team, product and business model."

"Turvo is revolutionizing logistics with an end-to-end IOT platform to create the 'Internet of Shipping,'" said Fadell, who was founder and CEO of Nest, the company that is widely credited for bringing the Internet of Things to the home and making it mainstream.

"Turvo goes beyond supplying a logistics platform. It also makes available a constantly learning and improving intelligent shipping assistant to help any shipper of any size meet or beat the best in the industry."

Turvo is working with a number of iconic companies like Oberto Brands, the nation's leading all-natural jerky manufacturer; Le Metier De Beaute, a high-end cosmetics company; and Anchor Brewing, America's original craft brewery – as well as logistics providers like Service First Logistics (SFL).

"Turvo is game-changing. It solves some of the biggest and most complex problems in the industry with an elegant and empowering experience," said Richard Blanch, founder and CEO of Le Metier De Beaute.

Turvo's software platform is smart, collaborative and easy to use. The platform works across the entire supply chain and includes the following features:

• Cross-Company Collaboration: Turvo keeps everyone on the same page by making it easy to share shipments and documents, send messages, and assign tasks to people both inside and outside the organization, reducing back-and-forth phone calls and emails.
• Real-Time Visibility: Turvo tracks shipments in real-time from dispatch to delivery using the Turvo mobile app and hardware sensors, giving companies unprecedented transparency into their supply chain.
• AI-Powered Productivity: Intelligent notifications, instant search, contextual actions and automated recommendations empower smarter, faster decisions.
• Billing and Payments: With a single collaborative platform, digital invoices can be shared instantly and payments can be scheduled automatically, eliminating emails and faxes so everyone gets paid faster.
• Security and Privacy: Turvo is secure by design and built on an enterprise-grade cloud platform. Granular privacy controls ensure users always control who can see what.

There's one huge factor shaping Starbucks and Dunkin' Donuts' 'coffee shop of the future'

• Kate Taylor 

• Mar. 26, 2017, 1:01 PMMobile ordering is just as important as the upscale Roastery in shaping the future of Starbucks.Matt Weinberger/Business Insider

Smartphones are about to change coffee shops as we know them, as Dunkin' Donuts and Starbucks prepare to build the "coffee shop of the future." 

"As we think about what that coffee shop of the future look like… the whole store will be much more focused on mobile ordering," Scott Hudler, Dunkin' Donut's chief digital officer, said at a media day on Tuesday.

While Hudler said Dunkin' Donuts doesn't have any design tweaks to announce yet, both Dunkin' and Starbucks are realizing that the rise of mobile orders means that the coffee shops need to make some changes... and fast. 

Currently, a little over 1% of Dunkin' Donut's orders are made via mobile devices.

At Starbucks, that figure has reached more than 8% — something that has created some problems for the chain.

Starbucks has added shelves at some locations to make the mobile ordering hand-off more convenient.Kate Taylor

In January, Starbucks reported that transactions, an important measure of customer traffic, dropped 2% in the most recent quarter, in part because of problems caused by mobile ordering. On Wednesday, at the company's shareholders meeting, executives said Starbucks has rolled out fixes, including adding more employees at peak hours and tweaking the beverage hand-off process, to fix bottlenecking issues. 

"Now, the early feedback from store managers and customers has been very positive," said Kevin Johnson, Starbucks' president and COO. "But keep in mind, these are just the first steps of a number of things we are doing to improve capacity and throughput in our store."

Some of these bigger picture changes may include reconfiguring some locations to make room for two separate lines: one for in-store orders and one for mobile orders.

In essence, both Dunkin' and Starbucks are realizing that store designs will need to fundamentally change at some point in the near future to put mobile front and center, at least in some locations. 

Kate Taylor

The two chains' futuristic coffee shops likely won't be identical. Dunkin' customers are more concerned about speed, while Starbucks needs to pay closer attention to maintaining shops' welcoming atmosphere. 

Coffee chains are in a unique position in the retail industry, as digital orders are crucial to the future and lack a clear precedent for stores to build upon. The retail industry demonstrates the dangers of ignoring mobile and online orders, as traditional retailers like Macy's and Sears close hundreds of locations after failing to compete with e-commerce rivals. 

"We've got to evolve rapidly. We've got to change," Hudler said. "Retail and really [quick service restaurants] specifically are really on the front lines on a lot of those changes."

Starbucks and Dunkin' Donuts aren't yet at the point where, if they fail to win over mobile customers, they'll be forced to shut down stores. However, as seen by Starbucks' recent struggles, it's becoming clear that the coffee shop of the future needs to fully embrace mobile — or risk losing customers as mobile orders grow. 

Amazon’s Cashier-Free Store Might Be Easy to Break

Don Reisinger

2:03 PM ET

Amazon needs a little more time to address some odd troubles it's facing with its new cashier-free stores, according to a new report.

The online retail giant will not open its Amazon Go cashier-less stores later this month as planned, The Wall Street Journal is reporting, citing people who claim to have knowledge of its plans. Instead, Amazon needs more time to address some quirks it's found in tracking customers at the store when they pick out their desired items.

According to the report, Amazon's sensors are only able to track approximately 20 people in Amazon Go marketplaces at a time. Up to 20 people, the automated store can track customers and check them out without trouble. Once more customers enter the store or when they slow their movements, Amazon's technology cannot so easily track them and the purchasing process breaks down, the report says.

Amazon (AMZN, +1.33%) in December unveiled several brick-and-mortar store concepts as part of a broader push by the online retail giant to expand its presence in cities around the world. Amazon Go is among the smaller store concepts and acts more as a convenience store for customers rather than a larger grocery store. Amazon had previously said it hopes to open the marketplace in its hometown Seattle in "early 2017," where it's currently testing the concept.

The company is also reportedly considering drive-through marketplaces, as well as grocery store concepts. Amazon has already opened pop-stores in malls and a handful of bookstores across the U.S.

Amazon Go is designed to be a cashier-free market where patrons are tracked with cameras, motion sensors, and artificial intelligence to determine what customers are picking up and whether their purchase matches the items the technology believes they chose. If it all checks out, customers will automatically make a purchase through their smartphones without ever needing to head to a register and be able to leave the store with their items in hand.

The futuristic concept, which tries to take human employees out of the retail equation, is breaking down in a mock store Amazon has erected in a warehouse in Seattle, according to the Journal's sources. Employees act as the mock customers.

It's unclear what Amazon might need to do to improve the system's accuracy and track more than 20 people in a store at the time. But the Journal's sources say Amazon is anticipating significant interest for its Amazon Go stores and will not open the marketplaces until the technology is more sophisticated.

Amazon did not immediately respond to a Fortune request for comment.

Amazon is unleashing a new weapon in the grocery wars

• Hayley Peterson
 
•  

• 8h

Amazon/YouTube

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Amazon is launching a drive-up grocery service that allows customers to pick up online orders.

Called AmazonFresh Pickup, the new service allows customers to order groceries online, then set a time for pickup as soon as 15 minutes after they place the order.

At an AmazonFresh pickup location, employees will load the groceries into customers' cars. 

Amazon says customers can order thousands of groceries including meat, dairy, and fresh produce.

The service is free for Amazon Prime members, but it's only available in the Seattle area for now. 

There's no purchase minimum and customers can make unlimited orders, according to Amazon. 

Here's how it works: customers place an order using Amazon's app. 

Amazon/YouTube

Then they select a pickup time, which can be as soon as 15 minutes later. 

Amazon/YouTube

Amazon employees will pick out and package the groceries at an Amazon grocery store.

Amazon/YouTube

Then customers arrive at the AmazonFresh Pickup location, and their order is loaded into their car.

Amazon/YouTube

Here's a video explaining the whole process.