The Friday Checkout: Amazon taps Whole Foods leadership for grocery growth
When Amazon purchased Whole Foods Market back in 2017, it was a safe assumption that the specialty grocer's image would morph to reflect Amazon's business. And for a time, that was the direction things were going: Whole Foods' pricing has gotten more competitive, Amazon Prime serves as a loyalty program of sorts, and the grocer now touts more high-tech payment options, including palm-scanning payment. There was even a stint with Just Walk Out frictionless checkout.
Now, however, the tables are turning - Amazon seemingly wants to be more like Whole Foods.
Amazon has spent years finding its footing in an attempt to get its own grocery empire off the ground - particularly with its traditional grocery chain Amazon Fresh - but nothing has wowed the industry or shoppers. And while Amazon Fresh hasn't indicated that it plans to become a specialty grocer, it is at long last leaning into Whole Foods' leadership to chart a better course.
Though Amazon established a single grocery entity back in 2022, Whole Foods and Amazon's supermarket operations still ran fairly separately. This separation was fine for Whole Foods' growth, but Amazon continued to play whack-a-mole with store openings and closures for Amazon Fresh.
This week, Amazon unveiled a restructured leadership team for its Worldwide Grocery division that includes top executives from Whole Foods Market. This internal shift comes less than six months after Whole Foods CEO Jason Buechel stepped in to helm both Whole Foods and Amazon's grocery business as vice president for worldwide grocery stores.
It seems Amazon is finally recognizing that Whole Foods is an asset not just as a specialty banner, but also as a key guide to Amazon's grocery ambitions. With Amazon Fresh treading water for so long, it's odd Amazon didn't call in Whole Foods for an assist years ago.
In case you missed it
Thousands of grocery workers across three states threaten to strike
This week, 45,000 unionized grocery workers in Southern California authorized an Unfair Labor Practice strike against Kroger and Albertsons, according to a United Food and Commercial Workers Local 770 announcement.
Safeway workers in Colorado and employees at Kroger and Albertsons' banners in Washington state have already voted in favor of authorizing a strike. The strike threats come as three local unions under the UFCW are separately negotiating contracts with the grocers.
"A summer strike would disrupt the busiest season for two of America's largest grocery chains," UFCW 770 said.
Costco pumps up its higher-cost membership
The club retailer is looking to make its Executive Membership, which costs twice as much as its other two membership options, more attractive. Costco's Executive members in the U.S. and Canada will get a $10 monthly credit towards a same-day delivery order fulfilled by Instacart, starting June 30, according to a Wednesday announcement. Costco confirmed to USA Today this week that its clubs will open an hour early for its Executive members, starting June 30.
While accounting for less than half of Costco's members, Executive members make up 73% of the retailer's sales, according to Costco data cited by CNBC, which noted that Costco raised the price of its Executive and Gold Star memberships last year.
T&T Supermarkets zips ahead with U.S. expansion
After debuting stateside last winter in Bellevue, Washington, Canada's largest Asian grocery retailer is charging forward with its store growth plans in the U.S., announcing on Thursday that it plans to open a sixth store in the country. Coming to Chino Hills, California, the 61,000-square-foot store is scheduled to open in fall 2026.
The announcement comes just a few months after T&T unveiled plans for its first location in Southern California, which is expected to debut in Irvine next year. The retailer also has stores planned for San Francisco; San Jose, California; and Lynwood, Washington.
Impulse find
Latest spin-off from the Chantilly Cake craze
Chantilly Cake - vanilla cake with berry jam, fresh berries and whipped Chantilly cream - is all the rage, and Publix is the latest grocer to hop on the bandwagon.
The Florida-based grocer has released a limited-edition Chantilly Cake ice cream "with white cake ice cream, berry swirls, and bits of almond-flavored cake," Food & Wine reported this week. The frozen treat is based on the Chantilly Cake Publix carries in its bakery department, Lindsey Willis, media relations manager at Publix, told the publication.
This isn't the first time a grocer has drawn inspiration from the fan-favorite cake. This spring, Whole Foods unveiled a Berry Chantilly Latte, which is available until July 1, Food & Wine reported.
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