Category: Supermarkets & Hypermarkets

The Giant Company has named Rebecca Lupfer as senior vice president and chief merchant, effective immediately, the grocer announced Tuesday.

Lupfer, who served most recently as The Giant Company’s chief financial officer, will lead all aspects of merchandising as well as commercial planning and pricing for the chain. She will report to President John Ruane, who ascended to the top role in July 2023.

Lupfer arrived at the Ahold Delhaize-owned grocer in 2018 as director of merchandising planning. She went on to serve as vice president of The Giant Company’s Mid-Atlantic unit and its vice president of center store grocery before rising to head the company’s financial operations last October.

Before joining The Giant Company, which runs almost 200 stores in Pennsylvania, Virginia, West Virginia and Maryland, Lupfer held multiple positions for Ahold Delhaize USA and Ahold Financial Services, which she joined in 2005 as a business analyst.

“With nearly 20 years of retail grocery experience spanning nearly all areas of the business, Rebecca brings a tremendous amount of expertise to the table as well as an incredible passion for building strong teams that deliver results,” Ruane said in a statement.

Giant Food, another Ahold Delhaize-owned grocer in the U.S., also recently named a veteran of the Dutch company’s U.S. unit to serve as its chief merchant.

CALGARY, ALBERTA — Cargill, along with some of its customers, decided to renew a minimum $400 credit for beef producers certified with the Canadian Roundtable for Sustainable Beef (CRSB).

The program allows for top-up payments of Cargill’s cattle credits for animals processed during 2023 of at least $400. The credit will be paid to CRSB-certified operations regardless of whether their qualifying cattle were sold to Cargill.

“In 2024, CRSB will prioritize identifying long-term solutions to ensure certification provides financial value and enduring benefit to producer participation,” said Ryan Beierbach, chair of the Canadian Roundtable for Sustainable Beef and beef producer from Whitewood, Saskatchewan. “We think the CRSB Certified program is one important tool for the Canadian beef sector to demonstrate continuous improvement, and the CRSB hopes other organizations will formally recognize its value.”

Along with Cargill, other customers are funding the CRSB credit, including Centennial Food Solutions, Gordon Food Service, Intercity Packers, MacGregors Meat & Seafood, McDonald’s Canada, Metro, Recipe Unlimited and Walmart.

“With this funding, we want to recognize the commitment of Canadian producers in ensuring the viability of this program and their dedication to sustainable practices throughout a difficult production year,” said Eliza Clark, sustainability lead for Cargill Protein and Salt. “We are also grateful for the many Cargill customers who have contributed to our combined investment of this initiative. It is their support of programs like the CRSB Certified Sustainable Beef Framework that allows us to create and sustain high standards for sustainability practices across the Canadian beef supply chain.”

CRSB noted that the credit would be provided for another year to “fill the gap” for Canadian beef producers who made the upfront investment of becoming CRSB Certified but did not receive at least $400 credit in financial return for qualifying cattle processed in 2023 as part of the existing qualifying cattle credits.

The information from CRSB noted that producers who received $400 or more in credits last year will not qualify in the latest cycle.

CRSB made it clear that qualified operations do not need to apply separately for this credit and can expect payment to arrive during April 2024 as long as it maintains an active certification status at the beginning of the year.

TAMPA, FLA. — After preliminary approval of a class action settlement involving Walmart Inc., frequenters of the retailer may be eligible for a cash payment.

Denying any wrongdoing, Walmart agreed to pay $45 million to settle the class action lawsuit alleging the retailer used deceptive business practices.

The complaint accused the company of falsely inflating product weight, mislabeling weight of bagged produce and overcharging of sold-by-weight clearance products. Walmart customers who purchased certain sold-by-weight meat, poultry, pork and seafood products as well as certain organic oranges, grapefruit, tangerines and navel oranges allegedly paid more than the lowest in-store advertised price for those products.

Consumers who purchased such products between Oct. 19, 2018, and Jan. 19, 2024, at a Walmart Store in the United States or Puerto Rico are eligible to receive compensation.

To receive a cash payment, consumers must submit a claim by June 5.

The amount that an individual will receive depends on the amount of weighted goods or bagged citrus they purchased during the settlement class period. It also depends on the number of people who submit valid claim forms.

Eligible consumers without proof of purchase could receive between $10 to $25, depending on the quantity of goods they attest to buying during the settlement class period. Those with receipts or other documentation could receive up to 2% of the total products’ cost, up to $500.

A final approval hearing will be held June 12. Objections and comments are welcomed through May 22.

BENTONVILLE, ARK. – Walmart Inc. has introduced Bettergoods, a line of approximately 300 private label products in categories that include frozen food, dairy, snacks, beverages, pasta, soups, coffee, chocolate and more.

Bettergoods products are focused on three applications, according to the retailer — creating culinary experiences, plant based and “made without.” Products sold for creating culinary experiences include specialty salts and seasonings, a line of soups in jars and pasta items positioned as premium.

Plant-based products will feature green branding and include oat milk non-dairy frozen desserts and plant-based cheese alternatives. The made without pillar will offer a variety of products that focus on different dietary lifestyles like gluten-free, made without artificial flavors, colors and added sugars.

“Today’s customers expect more from the private brands they purchase — they want affordable, quality products to elevate their overall food experience,” said Scott Morris, senior vice president of private brands, food and consumables for Walmart. “The launch of Bettergoods delivers on that customer need in a meaningful way. Bettergoods is more than just a new private brand. It’s a commitment to our customers that they can enjoy unique culinary flavors at the incredible value Walmart delivers.”

Products included in the Bettergoods line will range from under $2 to $15, with most products available for under $5, according to Walmart.

NEW YORK — Food and groceries remain top of mind for US consumers when it comes to spending their inflation-tinged dollars, said John Furner, president and chief executive officer of Walmart US, at the Oppenheimer Consumer Growth & E-commerce Conference.

Following the post-pandemic inflation wave, customers have favored nondiscretionary over discretionary purchases, and increased food and consumables sales have siphoned dollars from Walmart’s general merchandise business, Furner explained in a question-and-answer session with Oppenheimer & Co. analyst Rupesh Parikh at the virtual event on June 11.

“What we’ve really noticed starting in early 2022 was some conscious switching amongst products, and you can see that pronounced suddenly in the store,” Furner said. “But based on what people are having delivered, our flexibility, convenience and other things that we have improved over the last few years have made a difference in our ability to serve more of our existing customers more often with more units and then meet some new customers as well, which is great. As far as the mix inside the business when it comes to merchandise, over the last five years — really four-and-a-half to five years — we’ve seen about a 2% shift from discretionary to nondiscretionary. In other words, 2% more of our business is food and consumables than what it was before this period began.”

But change may be in the wind among consumers, Furner noted. For the fiscal 2025 first quarter ended April 26, Walmart reported that US net sales rose 4.6% year over year to $108.7 billion, and comparable sales excluding fuel increased 3.8%, with e-commerce contributing 280 basis points to comp results. The average shopper ticket amount was flat despite a 3.8% growth in transactions. Operating income climbed 9.6% on an adjusted basis.

“We’re seeing consistency amongst consumer groups over the last several quarters,” Furner said. “Some of the factors that are weighing in are strong employment — another 272,000 jobs created reported last week (by the US Bureau of Labor Statistics). Wages have grown pretty significantly in a lot of sectors over the last few years, and wages at Walmart amongst our associate group have grown about 30% over the last five years.”

Despite shoppers’ efforts to temper spending, both the food/consumables and general merchandise segments have grown for Walmart US, Furner pointed out.

“Both businesses are bigger,” he said. “The only real shift we’ve seen in the last couple of quarters, (which) we talked about at the end of Q1 as we got into the month of May, is more strength in apparel and more strength in home. Apparel is coming from both our new remodels, what we call ‘Store of the Future,’ which is great to see the improvement there. And then expansion of assortment and first-party commerce and the Marketplace have both helped our home and apparel businesses.”

Agreeing with Oppenheimer’s Parikh, Furner said the market is “definitely a bit more promotional” versus a year ago as key players have become more aggressive on pricing to draw cost-savvy shoppers. After waiting to be the “last up” to lift prices during the runup in inflation, Walmart US stepped up promotions in 2022 to clear inventory and then stabilized them in 2023, he noted. Now the Bentonville, Ark.-based retail giant is turning up the promotional heat again to keep its pricing edge.

“We wanted to maintain our price gaps, and it feels like we’re in the third phase where there’ll be more unit retail pressure across the market,” Furner explained. “So we’re definitely seeing more promotions. We have over 7,000 Rollbacks in our assortment, which is up about 45% over a year ago. During this third phase, we’re really focused on unit growth. And if we see the opportunity to lower prices, we want to be the first down.

“We’ll manage margins. We’ll invest in prices appropriately. We’ll invest in experience and associates and then manage this within the bottom line. But the 7,000 Rollbacks are a great example of what’s different this year versus last year.”

Walmart customers have embraced the Rollbacks.

“The consumers are very smart,” Furner said. “They recognize its value, and (with) a lot of items where we’ve taken 20% off the retail — or in some cases, less or more — we see up to 40% increases in units. It’s typically immediate items like french bread or some price investments made in produce have done really well. Our private-brand soft drinks we took from $1.42 to $1.”

He added, “There is more participation as of late with both brands and things that we’ve invested in on our own and for our merchants. They can invest in high-margin items and still grow units and mix categories. That’s a lever that the merchants have always had. But we are seeing more participation amongst suppliers as we try to get unit volumes up.”

When asked by Parikh about food-at-home versus food-away-from-home, Furner said Walmart US can cater to both channels as customer preferences and affordability change. But for now, consumers are still leaning toward at-home food consumption to save dollars.

“I think we’re positioned to continue to benefit, should that continue,” he said. “We’re also positioned that if that goes the other way, then we still have a lot of flexibility in channels we can deliver on. And when you look at our baskets by type of channel people shop, we can see differences. About a year ago, we saw units start to accelerate in produce, proteins and the dairy category. And when you dig into what was accelerating, it’s ingredients that would be used to cook at home, which is different than selling frozen food or packaged grocery, which of course we can do and (offer) great quality and value.” 

BENTONVILLE, ARK. — Walmart is accepting applications from small business owners and entrepreneurs to apply to its 11th annual Open Call event. Entrepreneurs will pitch their products for a chance to be sold on Walmart or Sam’s Club shelves or on Walmart.com or SamsClub.com.

Entrepreneurs chosen to be sold at Walmart in stores or online receive a golden ticket and have access to the company’s customer base.

Program participants will participate in mentoring sessions with Walmart leaders and have the opportunity to listen to guests. They also will have one-on-one pitch meetings with Walmart or Sam’s Club merchants.

Last year’s Open Call featured opportunities for supplier development. The program drew more than 700 businesses and more than 180 pitches resulted in 130 golden tickets, according to Walmart.

Applications are open until July 15. The event will be held on Sept. 24-25. 

MINNEAPOLIS — Target Corp. announced Amy Tu will join the company as chief legal and compliance officer and corporate secretary, effective Aug. 25. She succeeds Don Liu, who recently announced his upcoming retirement and will transition to a strategic advisory role.

In her new role with Target, Tu will lead the retail giant’s legal, compliance and corporate governance functions. She joins the leadership team and will report to Brian Cornell, chair and chief executive officer of Target.

“For years, I have admired the strength of Target’s brand and the vibrancy of its team culture, and I am honored to have the opportunity to lead these best-in-class legal affairs and compliance teams,” Tu said. “Their work enables so much of what makes Target a special place for millions of consumers and hundreds of thousands of team members. I look forward to joining the leadership team to build on that legacy, and to support Target’s winning strategy and sustainable growth for years to come.”

Tu most recently served as president of Tyson Foods’ $2.5 billion international business segment. She oversaw 19,000 team members operating in 16 countries and serving customers in more than 140 countries.

Tu joined the meat processor in 2017 as general counsel. Later, she was named executive vice president, chief legal officer and secretary of Global Governance & Corporate Affairs at Tyson.

Prior to her tenure at Tyson Foods, Tu worked for Boeing, where she held leadership roles in law, corporate development and strategy, and served as chief counsel for global law affairs and the commercial airplanes and aviation services divisions.

She started her career in retail with senior legal roles at Walmart and The Gap.

“Amy’s experience, both in legal and business leadership, offers strong continuity at the top of our legal affairs and compliance teams,” Cornell said. “Her stewardship will help our strong and tenured leaders in legal affairs sustain their role in serving our stakeholders and growing our business. Amy’s growth mindset, her passion for the law and her skill as a business counselor make her a great addition as our leadership team drives Target’s roadmap for growth and enterprise priorities.”

Liu will transition to a strategic advisory role through May 2025. He joined Target in 2016 and throughout his tenure became a trusted advisor to many across the company.

He is a co-founder and board member of the Alliance for Asian American Justice, a board member of Invesco Mortgage Capital, and a member of the American Law Institute and the National Asian Pacific American Bar Association.  

“Over the course of his distinguished career, Don has made an incredible impact on Target and the legal industry,” Cornell said. “As a member of our leadership team, he was an advocate for our company strategy, served as a mentor to teammates and peers and is regarded as a trailblazer for diversity, equity and inclusion within the legal profession. We’re grateful for his many contributions and wish him nothing but the best.”

BENTONVILLE, ARK. — Walmart continues to benefit as consumers across income levels, including affluent customers, are seeking value when shopping in stores or online, President and Chief Executive Officer Doug McMillon said in reporting fiscal 2025 second-quarter results.

Adjusted earnings per share topped prior-year EPS and the high end of Wall Street’s projection, though reported net income took a hit from investment losses. Overall revenue climbed 5% in constant currency, with sales up in all three operating units: Walmart US, Sam’s Club and Walmart International. The performance led the world’s largest retailer to raise its full-year guidance.

“We had another good quarter, with strong sales growth and even stronger profit growth, exceeding our expectations,” McMillon told analysts in an Aug. 15 conference call. “The strength we saw for the quarter was broad-based. Our business outside the US continues to lift the total company in terms of sales and profit growth.”

Walmart gained market share during the second quarter, including in the discretionary category of general merchandise, and transaction counts and unit volume rose across markets, McMillon said.

“In the US, for both Walmart and Sam’s Club, comp sales (comparable sales) were fairly consistent throughout the quarter,” he said. “Food continues to be strong, and it’s encouraging to see improvements in general merchandise. Our US health and wellness business in Walmart and Sam’s Club, primarily due to sales of GLP-1 drugs, is contributing to our strong comp sales.

“So far, we aren’t experiencing a weaker consumer overall. Around the world, our customers and members continue to want four things: They want value, they want a broad assortment of items and services, they want a convenient and enjoyable experience buying them, and they want to do business with a company they trust. These four things are constant, but the way we provide them is changing — and changing fast. The results we’re delivering are due to real progress across these dimensions.”

Consolidated net income for the quarter ended July 31 totaled $4.5 billion, equal to 56¢ per share on the common stock, down from $7.89 billion, or 97¢ per share, a year earlier. The fiscal 2025 quarter’s results reflect a pretax 14¢-per-share loss from equity and other investments and compared with a 48¢-per-share pretax investment gain in the prior-year period, Walmart said. On an adjusted basis, second-quarter 2025 diluted net EPS was 67¢, up from 61¢ a year ago. That surpassed analysts’ top-end forecast of 66¢.

“As it relates to value, we’re lowering prices,” McMillon said. “For the quarter, both Walmart US and Sam’s Club US were slightly deflationary overall. Walmart US food prices were slightly inflated as we exited Q2, but down 30 basis points versus Q1. In Walmart US, we have more than 7,200 (price) Rollbacks across categories. Customers from all income levels are looking for value, and we have it.”

At the top line, Walmart’s second-quarter revenue rose 4.8% to $169.34 billion from $161.63 billion a year ago, with the increase at 5% in constant currency. Operating income was up 8.5% to $7.94 billion and grew 8.8% in constant currency.

Net sales at the core Walmart US business unit grew 4.1% year over year to $115.35 billion. Comparable sales excluding fuel were up 4.2%, less than the 6.1% gain a year ago. Customer transactions grew 3.6%, up from a year-ago increase of 2.9%, while the 0.6% uptick in average ticket size came in below last year’s increase of 3.4%. Walmart said e-commerce contributed 300 basis points to US comp sales, up from 230 basis points a year earlier. US operating profit advanced 7.8% to $6.59 billion.

“In Walmart US, comp sales growth of 4.2% was driven primarily by strong traffic and unit growth across both stores and digital channels,” said John David Rainey, chief financial officer for Walmart. “Customers continue to be discerning and choiceful, looking for value to maximize their budgets while leaning into seasonal celebrations. The pace of sales was largely consistent by month during the quarter. Across categories, we’re providing low prices and winning customer consideration, including in general merchandise, with Walmart US comp sales growth in hardlines, home and fashion.

“We’re also seeing higher engagement across income cohorts, with upper-income households continuing to account for the majority of gains, even while we grow sales and share among middle- and lower-income households. We’re seeing private brand penetration continue to increase, and we’re highly encouraged by customer uptake of our new food brand, bettergoods.”

Sales at Sam’s Club rose 4.7% to $22.85 billion, while comparable sales excluding fuel were up 5.2% in the quarter, compared with a 5.5% increase a year earlier. The warehouse club chain saw transactions jump 6.1% versus a 2.9% gain a year ago. The average ticket decreased 0.8% after a 2.5% uptick in the prior-year period. E-commerce contributed 230 basis points to comp sales growth, up from 150 basis points a year earlier. Operating profit grew 11.5% to $581 million.

Walmart International net sales were up 7.1% to $29.57 billion, with growth at 8.3% in constant currency. Operating income climbed 14.3% to $1.36 billion and was up 15.7% in constant currency.

Overall, Walmart’s e-commerce sales grew 21%, with gains of 22% for Walmart US, 22% for Sam’s Club and 18% for Walmart International.

“Sometimes, it’s most convenient or enjoyable to visit one of our stores or Sam’s Clubs,” McMillon said in discussing Walmart US’ performance. “Sometimes it’s more convenient to pick up an order. And sometimes, it’s more convenient to get it delivered. Our store and club businesses are growing. Pickup is growing faster than our in-store or club sales, and delivery is growing even faster than pickup.”

Walmart posted fiscal 2025 first-half consolidated net earnings of $9.61 billion, equal to $1.19 per share, up slightly from $9.56 billion, or $1.18 per share, in the fiscal 2024 first half. Adjusted EPS (diluted) was $1.27 for the 2025 half versus $1.10 a year earlier.

“For the first half of the year, we reported net sales growth of more than 5% and adjusted operating income growth of almost 10%,” Rainey said in the call. “We are raising our full-year (2025) guidance to reflect strong first-half results.”

Walmart now expects fiscal 2025 adjusted EPS (diluted) of $2.35 to $2.43, up from the previous forecast of $2.23 to $2.37. Growth for consolidated net sales was raised to 3.75% to 4.75% from 3% to 4%. Likewise, the growth range for adjusted operating income was lifted to between 6.5% and 8% from between 4% and 6%.

“Looking at the second half of the year, we expect the business to achieve sales growth in line with our financial framework and for sustained structural improvements in incremental margins,” Rainey said. “This should result in operating income growing slightly faster than sales when looking at the second half in total.”