BENTONVILLE, AR - If you are anything like me, you've probably been keeping an eye on Walmart’s upward trajectory in e-commerce, grocery delivery, and international expansion. Well now, the results are finally in. Recently, the behemoth announced that its quarterly results saw a strong finish and a great start to 2020.
“We thank our associates for another good year. In Q4, we saw a strong performance in the U.S. with e-commerce and Sam’s Club plus strength in Mexico, India, and China,” commented Doug McMillon, President and CEO. “We started and finished the quarter with momentum, while sales leading up to Christmas in our U.S. stores were a little softer than expected. The new year has started off well, and we look forward to another strong year. We remain focused on providing our customers with the best omnichannel experience from any retailer.”
Strong leaders beget strong growth. The retailer has been on a hiring spree as of late, bringing on John Furner as its new President and CEO, Walmart. U.S.; Kath McLay as its new President and CEO, Sam’s Club; Suresh Kumar as its new Chief Technology Officer and Chief Development Officer; and Donna Morris as its new Chief People Officer.
Walmart has also put a more concentrated focus on its food and delivery sectors, launching free NextDay delivery from Walmart.com, Delivery Unlimited, and Walmart InHome Delivery last year with nearly 3,200 grocery pickup locations and more than 1,600 delivery locations added.
According to its Q4 FY20 Earnings Release, Walmart saw:
- Total revenue at $141.7 billion, an increase of $2.9 billion, or 2.1 percent
- Walmart U.S. comparative sales increased on a two-year stacked basis by 6.0 percent with continued strength in food and consumables
- Walmart U.S. e-commerce had strong growth in grocery pickup and delivery, and walmart.com had its highest quarterly growth rate of the year
- Sam’s Club comparative sales increased 0.8 percent, and e-commerce sales grew 33 percent
- Net sales at Walmart International were $33.0 billion, an increase of 2.3 percent
Highlights for Fiscal 2020 included:
- Excluding currency, total revenue was $528.1 billion, an increase of $13.7 billion, or 2.7 percent
- Walmart U.S. comparative sales increased 2.8 percent and 6.4 percent on a two-year stacked basis
- Walmart U.S. e-commerce sales grew 37 percent
- Net Promoter Score and the Customer Value Index improved
- International net sales increased 2.8 percent in constant currency with strength in Mexico, China, and India
“The fourth quarter started and ended strong with solid sales growth through Cyber Monday and in January. In the few weeks before Christmas, we experienced some softness in a few general merchandise categories in our U.S. stores. However, Walmart U.S. grocery sales and e-commerce sales were strong throughout the quarter,” Brett Biggs, Chief Financial Officer, said. “Sam’s Club performed well, including solid results in e-commerce. We experienced softness in some key international markets, as well as in Chile, where unrest led to disruption in the majority of our stores. Walmex, China, and Flipkart all had a solid quarter. The holiday season delivered positive transaction growth and underlying expense leverage was strong for the quarter. However, it wasn’t as good as expected due to lower sales volumes and some pressure related to associate scheduling. We understand the factors that affected our results and are developing plans to address them. We remain confident in our business strategy and our ability to deliver value and convenience for our customers through an integrated omnichannel offering across the globe.”
For more details on the quarterly report, click here. For more news in the retail sector, keep reading ANUK.
PORTLAND, OR - Back in December, Good Food Holdings announced its acquisition of New Seasons Market and New Leaf Community Markets, stating that the deal would be finalized in January. The West Coast neighborhood grocers reported an update to the news last month, announcing that they have closed the transaction to merge with Good Food Holdings.
“We are proud to join the Good Food Holdings family as we have a shared commitment to building community through good food,” said Forrest Hoffmaster, New Seasons Market and New Leaf Community Markets Chief Executive Officer. “This partnership ensures our longevity as a community cornerstone, and enables us to continue to invest in our neighborhoods and staff, inspire environmental stewardship, and champion the local food economy.”
According to a press release, New Seasons Market and New Leaf Community Markets will continue to operate independently as part of Good Food Holdings’ portfolio of companies and as certified B Corporations, with a commitment to the companies’ mission and values.
Hoffmaster and the current local leadership team will continue to lead the organizations, maintaining the companies’ independent operations, company culture, vendor partners, and commitment to supporting the community. Additionally, Hoffmaster will serve on the Good Food Holdings Board of Directors. A new mission advisory council, chartered with ensuring continuity of the companies’ social and community benefit, will provide guidance to the Board of Directors and company leadership.
Congratulations to Good Food Holdings, New Seasons Market, and New Leaf Community Markets on this exciting agreement.
LAUREL, MD - The Coastal Companies recently announced the acquisition of a leading retail produce distributor and processor. Lancaster Foods, once under Guest Services, will now join Coastal Sunbelt Produce, East Coast Fresh, and Hearn Kirkwood as subsidiaries of The Coastal Companies.
“We are delighted to welcome Lancaster Foods to our family of companies,” said John Corso, CEO of The Coastal Companies. “Lancaster Foods shares our values of quality and service. This transaction pairs Lancaster’s leading position in retail with our leading position in foodservice to significantly expand The Coastal Companies’ market reach, sourcing, and value-added capabilities.”
According to the press release, the addition of Lancaster Foods greatly enhances The Coastal Companies’ retail presence and expands Lancaster’s product offerings to include grab-and-go, ready-to-eat, and prepared foods. With this acquisition, Coastal will also expand its presence on the East Coast in the produce distribution, processing, and prepared foods sector. The Coastal Companies will continue to operate Lancaster Foods under its current brand name and from its existing facility in Jessup, Maryland.
“Lancaster and Coastal have emerged as leaders in their markets. We have shared values around people and relationships. We are excited to be joining The Coastal Companies,” said John Gates, President of Lancaster Foods. “Together, our network of vendors and our portfolio of products and services will enable us to provide even greater value to our customers.”
Gates and his team will remain with the company and continue to lead the organization. In conjunction with this transaction, Gates joins The Coastal Companies Board of Directors and becomes a member of The Coastal Companies Executive Leadership Team.
The acquisition will bring The Coastal Companies to operate on four facilities with more than 650,000 square feet of cold storage and processing stretching from Maine to Florida. Over the coming year, overlapping retail and wholesale customer relationships will be harmonized while foodservice relationships will remain unchanged.
“The company has grown because we take care of our customers, we take care of our people, and we invest in our business,” stated Corso. “Lancaster Foods is a great strategic and cultural fit with The Coastal Companies. We look forward to partnering with John Gates and his team.”
Keep checking back on ANUK as we bring you more industry news.
FRESNO, CA - The California Fresh Fruit Association (CFFA) has recently made another addition to its leadership team, announcing the appointment of Adam Borchard as Director of Government and Public Policy. Borchard comes to the association after serving as a Regulatory Advocate at the Association of California Water Agencies (ACWA).
“I have had the privilege of knowing Adam over the past two years during his time as a part of Class 49 for the California Agriculture Leadership Program,” said President Ian LeMay. “We are extremely fortunate to have Adam join the CFFA team. Adam brings an extensive educational and professional background to this position, and we are excited to see what he can accomplish on our members behalf. We believe that Adam is a natural fit, along with our current staff, to continue to bring value to CFFA members and to serve the California fresh fruit industry.”
Borchard is a graduate of thr University of California, Davis, where he earned his bachelor’s degree in Environmental Sciences Management with a minor in Managerial Economics, according to a press release. He earned his Juris Doctorate with a Certificate in Public Law and Policy and Environmental Law from University of the Pacific, McGeorge School of Law. Additionally, he is a recent graduate of the California Agricultural Leadership Program, Class 49. Borchard’s first day at the Association will be Monday, March 9.
“We are thrilled that Adam has agreed to become a part of the team at CFFA. His personal background and education, as well as his extensive experience working on water resource issues on behalf of ACWA will bring great value to our membership,” stated Chairman of the Board, Randy Giumarra of Giumarra Vineyards Corp.
Congratulations to Adam Borchard on this incredible next step in his career!
SPRINGFIELD, IL - To become one of the elite in our industry, you must always remain poised for growth, nimble in the market, and able to adapt with success in our constantly changing fresh produce landscape. One company that achieves these goals in legacy as well as its forward-looking vision, is the Tom Lange Co., and what a better place to share its message than at this year’s SEPC Southern Exposure.
“This year Tom Lange Co. is celebrating its 60th anniversary, that in and of itself is a powerful message to the industry,” Becky Wilson, Vice President of Operations, shares with me. “What this means is that we have not only been successful for the last 60 years but are perfectly poised for success in the next 60. Stability in a fast-paced industry points to our commitment to our supply base, to make sure that we have the best associates in place and to ensuring the success of our customers.”
Southern Exposure is always an amazing way to kick off the year and the trade show season. The Tom Lange company will be taking advantage of the SEPC platform by promoting not only its Seven Seas-grown strawberries, citrus, and asparagus, but also the advantages of working with the Tom Lange offices and Lange Logistics.
“Working with any of the Tom Lange business groups can open up endless possibilities in terms of supply and logistics. We either grow it, procure it, and/or ship it; we are a full-service organization,” Becky expresses. “The strength of being in business for over 60 years means that we understand that strategies and messaging are ever-changing. Working closely with our grower/shipper community and customers alike we tailor programs so that success is derived throughout the distribution channel.”
As Becky wraps up her thoughts on the show, she adds that Southern Exposure provides the perfect environment to connect with not only customers, but also industry colleagues across multiple events.
“The atmosphere created by SEPC is one of friendship and fellowship, which is unique in today’s environment,” she says.
The excitement of another SEPC Southern Exposure is palpable amongst our industry already, and we can’t wait for the event to hit this month! Check out the Tom Lange Company at booth #218 to see what they have in store and keep an eye out for our AndNowUKnow boots on the ground!
NEW JERSEY - It seems that every state is the center of a grocery showdown, with retailers continuing to duke it out for every square foot. New Jersey is the latest battleground, as Lidl continues to rack up its store count in the backyards of fellow competitors Aldi and ShopRite.
"As a native of the Philadelphia area, I look forward to bringing Lidl's unique, high quality products at low prices close to home," Lidl's Cherry Hill Store Manager Darnell Mason said to news source Patch.com. "The local team and I cannot wait to get to know the local community over the coming months and years."
Lidl recently announced the opening of two new stores in New Jersey, which will place its store count at six in the Garden State. Over the past few months, the state seems to be the apple of the discount grocer’s eye, as it announced two others earlier this year.
Will Lidl continue to flood the New Jersey market? AndNowUKnow will be sure to update you with the latest.
BELGIUM - We’ve recently reported that Ahold Delhaize is streamlining its operations on the East Coast here in the States—a move meant to build stronger brands. The company is continuing this effort by concentrating its energy on its banners all over the world. The Dutch-Belgian retail company announced that its Albert Heijn Belgium banner will begin delivering groceries to customers.
“We have a proven formula in Belgium: Dutch prices, a surprising range, and personal service. We further expand that personal service,” commented Raf Van den Heuvel, General Manager of Albert Heijn Belgium. “Delivering at home reinforces Albert Heijn's proposition in Belgium. We are ambitious in our growth—we want to achieve this through the opening of strong new stores and the expansion of our online offering.”
According to the company's statement, Albert Heijn’s 50th store opened this week, and customers can now pick up their ordered groceries at Pick Up Points. In the spring, home delivery will be added to customers in the Antwerp region. New delivery areas will be rolled out depending on interest. As of today, customers can indicate on the company’s site whether they are interested in home delivery.
“We are further expanding our shopping service with feedback and input from the customer,” adds den Heuvel. “That’s how we grew in our physical stores, that’s how we will do it for home deliveries.”
As this new Ahold Delhaize division continues to be built out, ANUK will continue to follow along with more retail blueprints.
YUMA, AZ - It is with a heavy heart and our deepest condolences that we share the recent passing of Isabel Nuñez, one of the original founding members of the Bard Valley Date Growers and a date industry icon. He passed away on Friday, February 7. A true American success story, Nuñez paved the way for growers and operations to thrive in the Bard Valley region, giving jobs to thousands and supplying the country with only the best Medjool dates.
In 1958, Nuñez first arrived in Bard Valley as a farm laborer working for a Medjool date grower. Fueled by a passion and wonder of dates and his crop, he purchased his very own 10-acre date farm in 1972 and began his own operation in Bard Valley, where Natural Delights dates still grow today. It was under his care and stewardship that his date farm thrived and a few years later, he acquired Imperial Date Gardens. Today, the Nuñez family now has 4,000 acres, with dates growing on 3,000 of those acres.
“My father revolutionized the Medjool date industry and was responsible for so many changes for the industry for so many years,” said Gus Nuñez. “We’re going to miss his insight as a family and what he meant to this particular operation. As one of the last pioneers of the early Medjool date industry, he contributed to what we have now in terms of growing and production. I hope he is known for having had the courage and vision to get us to the level we are at today.”
It was until his death that Nuñez worked in the date gardens. He was assisted by his children, Gus, Ramon, and Mari, and his grandson, Brandon.
“Much of the success of the Medjool date industry people know today is due to the personal pride and close attention to product quality that Isabel Nuñez and his family showed to their Medjool dates,” said David Anderson, Vice President of Sales and Marketing for Natural Delights. “Isabel was not only an icon but a titan in our industry, and we extend our deepest sympathies to his family during this time.”
We at AndNowUKnow extend our deepest condolences to Isabel’s family and friends during this time as well as to all those who knew him.
MURRIETA, CA - Even though Valentine’s Day is over and done with, the month of love is still going strong—especially with West Pak Avocado building on its ongoing 2020 series with a classic love story sure to connect with consumers. Its latest Avo Effect campaign video, Humanizing Avocado Love—the third episode in the series—captures the digital, social, and artistic influence avocados have had on Americans’ daily lives.
“What we’ve come to recognize is that the avocado has created a culture of success, happiness, and opportunity for each of our dedicated employees, customers, and industry affiliates who we work so closely with. This domino effect is what we at West Pak Avocado call, the Avo Effect,” shared Doug Meyer, West Pak Avocado’s Senior Vice President of Sales and Marketing.
The video series pulls from some of our industry’s brightest thought leaders and industry professionals, featuring exclusive interviews that get to the heart—or, rather, the pit—of how the avocado has generated so much excitement, especially on social media.
“What we’ve done is look at the avocado not just as a commodity but as a thing that can actually change society,” said Visual Content Agency Co-Founder and Director of Strategy, Amy Hadrys—who, alongside her Creative Director business partner, Vincent Apodaca, and their team, produced the Avo Effect video campaign for West Pak Avocado.
“I love people’s passion for avocados,” added Susie Rea of West Pak Avocado’s Sales and Business Development. “Who would have ever thought that there would be clothing, and earrings, and Halloween costumes with avocados? I would have never imagined that.”
One social media influencer and artist depicted in Humanizing Avocado Love is Los Angeles-based artist Ela Mella. According to a press release, Mella is known for her whimsical avocado artwork, having painted numerous murals and street art throughout the city of avocados, as she calls it. In the series, she explains that her passion for the green fruit stems from her story, which includes surviving cancer and striving to have a healthier lifestyle.
“This (avocado) movement kind of crept in and took over people’s lives and became more than this fruit that everybody loves…more than just avocado toast. It became this symbol of a mass movement towards taking care of yourself, towards wellness, towards health,” Mella revealed.
West Pak is also adding fuel to the avo-love flame by inviting consumers across Instagram to share how the avocado has positively impacted their life via the #avoeffect hashtag. The hashtag also serves as a giveaway, with each use of #avoeffect giving consumers the chance to win a special avocado gift basket.
For more about Humanizing Avocado Love and other conversations on the effect of avocados, visit avoeffect.com. And for more of the freshest produce industry news around, keep visiting. AndNowUKnow.
MONTEREY, CA - The Organic Produce Summit (OPS) has been the talk of the organic town ever since the show debuted more than four years ago—and to rave reviews at that. Displaying no signs of slowing, OPS is already ramping up for its 2020 annual event with sold-out exhibitor’s space and 152 of North America’s finest organic fresh produce growers, shippers, and processors set to showcase their coveted programs to attendees from across the buyside of our industry. With festivities and educational sessions already on the books for the July 8th and 9th OPS extravaganza at the Monterey Conference Center, I reached out to some of our industry’s leaders to share their insights on the show and where they find value in what the organic event has to offer.
Frank Padilla, Vice President and General Merchandise Manager for Produce and Meat, Costco
“Costco looks forward to sending buying representatives to Monterey for this year's Organic Produce Summit 2020, to continue to support the organic community and to seek out new suppliers. We also take this opportunity to tour the growing and packing operations of the fertile Salinas Valley and to take in the engaging and thought-provoking educational workshops.”
Peter Barone, Procurement Manager, Evolution Fresh, Starbucks
“The Organic Produce Summit has provided the Evolution Fresh team a platform to engage with the organic community in a multi-faceted manner. Our Procurement, Marketing, and QA teams have a chance to network and engage with subject matter experts across the organic produce industry.”
Kevin Barry, Director of Produce and Floral, Big Y Foods
“The Organic Produce Summit provides attendees with the opportunity to meet and network with organic growers, see their product, and exchange ideas. The field tours are informative and a chance to engage with some of the leading growers in the industry. The opening reception is a gathering of growers, shippers, and retailers—all eager to network and exchange ideas. The breakout sessions offer a range of pertinent organic discussions and the presentations on the exhibition floor make it one of the best expos of the year. If you are involved with organics and would like to get involved, this summit is a must-attend!”
Registration is still open! Find out all you need to know here. Interested in reading more about what our industry has to say? Stay tuned as we bring voices from around the industry as we look to the Organic Produce Summit 2020!