How FreshDirect Lives Up To Its Name

The Wall Street Journal: “FreshDirect launched its online-only service in 2002 in New York. Its green and orange trucks now provide next-day delivery to customers across the New York-New Jersey, Philadelphia and Washington, D.C., metropolitan areas, with plans to expand into Boston next … Amazon, Target Corp. and other large companies have invested hundreds of millions of dollars to expand food delivery and build out their grocery e-commerce operations. Supermarket chain owner Koninklijke Ahold Delhaize NV’s Peapod unit, the longest-running online grocery service in the U.S., has expanded to 24 markets and is investing in technology to cut its handling and delivery costs.”

“The grocers are trying to solve one of the toughest problems in home delivery: Getting food to doorsteps in the same condition consumers would expect if they went to the store themselves … FreshDirect’s logistic hurdles start well before delivery. It must get products from its suppliers to the building, process the food, then pick, pack and ship orders before the quality degrades. That is why its new facility has 15 different temperature zones … Software determines the most efficient route for each order, and tells workers which items to pick … The site has shaved the time it takes to fulfill an order by 75%, according to FreshDirect, and doubled the number of items picked per hour, compared with the pace at its old facility in Long Island City, Queens.”

“The stakes in getting the technology right are high. FreshDirect is competing with grocery chains that often fill online orders through their stores, using a mix of staff and third-party services like Instacart Inc .. Online-only operations with centralized warehouses tend to be more efficient than logistics run out of stores, because they use fewer workers and can position goods for faster fulfillment, said Judah Frommer, a food retail analyst with Credit Suisse … FreshDirect says its relatively small scale also can be an advantage since it doesn’t have to be all things for all shoppers.” FreshDirect Chief Executive Jason Ackerman comments: “We focus on being the best local food, fresh food retailer. And a lot of the tech is to support that.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

UK Grocer Intros ‘Quiet Hour’

Quartz: “One of Britain’s largest supermarket chains has introduced a weekly quiet hour for customers who struggle with the noise associated with grocery shopping, like those on the autism spectrum.”

“Every Saturday morning from 9 to 10, each of Morrisons’ nearly 500 stores will dim the lights and shut off music. They’ll also try and deaden the cacophony of sounds that pervade supermarkets across the world—checkout beeps and the clangs of carts and baskets will be minimized as much as possible, and public-address announcements will be eliminated.”

“Around 700,000 people are on the autism spectrum in the UK. Grocery behemoth Tesco has conducted a six-week quiet hour trial, and many businesses across the UK had a one-off awareness-raising quiet hour in October. Morrisons is the first chain to roll out a weekly initiative in all of its stores.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Lucky’s: Like a Hardware Store for Groceries

The Wall Street Journal: “Lowes Foods, a chain in North and South Carolina, introduced gourmet sausage stations and “beer dens,” where customers can drink while they shop or get a half-gallon jug filled with a craft beer, in 14 locations four years ago. After they were launched, ‘there was an immediate, noticeable increase in the number of men shopping in our stores,’ says Heather George, senior vice president of brand strategy. The male-focused amenities are now featured in 61 stores.”

“Hy-Vee Inc., a Midwest chain of more than 240 supermarkets, revamped its store recipe magazines this year to include sports stars on covers and weightlifting spreads … Mega Meat sales, where customers earn gas discounts, are particularly popular, Hy-Vee says … At Alfalfa’s Market, a Boulder, Colo.-based grocery-store retailer, the percentage of men shopping has risen to 40% from 30% while the share of female customers has declined, says co-owner Tripp Wall. He is currently expanding the company to 10 stores from its current two, and working with architects to incorporate more of a male point of view into designs.”

“Based on his observations of customers, Mr. Wall says, men like when they can see the exit, even when they are deep in the middle of the store. … The meat department offers butchery classes. Stores have even had requests for more-masculine floral arrangements.” Jonathan Schoenberg, a 50-year-old dad who shops at Lucky’s in Boulder, Colorado, comments: “Most supermarkets are pastel colors and sell tons of flowers, and the language is merry-merry, happy-happy … Lucky’s feels like a hardware store with groceries.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Walmart Engages in Retail Politics

The Wall Street Journal: “Political divide in the country is creating a new landscape for business, in which fierce debates often lead consumers and employees to demand that corporations and chief executives take positions on big issues. That is increasingly pulling Walmart, the world’s largest retailer and largest private employer, into weighing in on issues such as immigration, the Confederate flag and gay rights—generally after other companies or politicians have done the same.”

“Under its 51-year-old chief executive, Doug McMillon, Walmart has often taken a more liberal stance on issues in recent years—a gamble for a company based in Red State Arkansas. But executives see its approach as part of its mission to let potential shoppers and employees know the company aims to be socially engaged. It’s a big change for a company that built itself as a ruthlessly efficient business focused on affordable shopping and that generally avoided taking a stand on political issues.”

“Today, around 72% of Walmart shoppers want the company to ‘take a stand on important social issues’ and 85% want the retailer to ‘make it clear what values you stand for,’ said Walmart’s chief marketing officer, Tony Rogers, in a June presentation to reporters, citing a survey by research firm Kantar. Increasingly, the perception of a company’s views and deeds are linked to its brand, he said … Yet with its political stances, Walmart, with 2.3 million workers, especially risks alienating its core customers, who often live in more conservative-leaning rural and suburban communities.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Alibaba Puts Tech in ‘FashionAI’ Boutique

Axios: “Everything is automated and powered by artificial intelligence — or soon will be — in a new fashion shop opening tomorrow in Hong Kong. From the time you enter, using an app to open an electronically locked sliding glass door, to the time you leave, you may never see another human apart from other shoppers …the objective is to merge e-commerce and brick-and-mortar retail — to make shoppers see them as one organism.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Cottage Cheese: Not Just for Punishment Anymore

The New York Times: “American companies like Dean Foods, the nation’s largest dairy company, have given their cottage cheeses makeovers, packing them into smaller, sexier packages and asking retailers to move them away from the sour cream and closer to the yogurt. New lines have interesting mixes of fruit and nuts, and some producers are experimenting with millennial-friendly additions like probiotics and chia seeds. Flavors are expanding beyond dusty stalwarts like pineapple to include kalamata olive, habanero chile or cumin. The goal, according to industry analysts, is to ‘uncottage’ cottage cheese — or, as one dairy executive put it, Chobani it’.”

“That’s where cheese makers like Sue Conley and Peggy Smith, the founders of Cowgirl Creamery in Marin County, Calif., come in. The key is very fresh skim milk from a well-run local dairy … Overnight, luscious, tender curds slowly form. In the morning, cheese makers cut them into pieces no bigger than peas. They cook and stir the curds … to release some of their acidity. Then the cheese makers drain the whey and wash the curds three times. The last step is the dressing … Cowgirl Creamery uses crème fraîche, and calls its pleasantly tart product clabbered cottage cheese … ​It’s not inexpensive. A 5.3-ounce container will cost a little less than $3.”

“Rekindling the love affair may be wishful thinking. There are a lot people who just are never going to like cottage cheese … Even Ed Townley, the chief executive officer of Cabot, isn’t convinced that cottage cheese is poised for a comeback, even though his company makes about five million pounds a year … Perhaps cottage cheese could be whipped to smooth it out, or made more spreadable, like ricotta cheese, he said. And then there is the name.” Mr. Townley comments: “It conjures up this old-fashioned image where you think of a cottage. Bottom line, it’s not sexy. A very clever Turkish name or something would go along way.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Step Right Up: Hot Dog Water

Global News: Thousands of people packed Vancouver’s Main Street on Sunday to take in the annual Car Free Day festival. And among the food vendors, merchant stands and music was one stall that stood out, inviting the public to enjoy a chilled, refreshing, healthful glass of Hot Dog Water … The drink’s impressive marketing advertises it as gluten-free, Keto diet-compatible, rich in sodium and a source of electrolytes. It also promises to help the drinker lose weight, increase brain function and look younger.”

“A bottle of Hot Dog water would set the adventurous water fan back $37.99, while a Father’s Day special’ will get you the bargain price of $75 for two. Hot Dog Water lip balm, breath spray and body fragrance were also for sale.”

“Tucked into the fine print at the bottom of the Hot Dog Water sales pitch is this: Hot Dog Water in its absurdity hopes to encourage critical thinking related to product marketing and the significant role it can play in our purchasing choices.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Collagen: A New Wrinkle?

The Wall Street Journal: “Foods infused with collagen and touting beauty and health benefits have been popular in Japan and Europe for years. Now they are making a splash in the U.S., in products from coffee creamer to protein bars. The rise of collagen as a food ingredient also comes as the line between food and medicine is blurring, nutrition experts say, and consumers seek ‘functional foods’ that promise more than just nutrition.”

“A longstanding beauty ingredient in wrinkle creams, shampoos and lip injections, collagen makes up about a third of the human body’s proteins, and dwindles with age. As an ingredient, it is sourced from the bones, skin or cartilage of animals including pigs, cows, chicken and fish. These tissues are typically treated with enzymes, dried and processed into smaller molecules—or peptides—to help absorption by the body.”

“Experts say much of the research that has been done on collagen supplementation is small in scale and often funded by the ingredient makers themselves. ‘The research is not there,’ says Mark Moyad, a director of complementary and alternative medicine at the University of Michigan Medical Center … Dermatologists say there isn’t any conclusive evidence that ingested collagen affects the hair, skin and nails. When collagen reaches the stomach, it gets broken down into amino acids just like any other protein.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Late & Great: Charles Hooley

The Wall Street Journal: “Bargain shoppers can thank Charles Hooley for the no-frills feel of more and more U.S. grocery stores … Groceries at his stores were unloaded from trucks as close as possible to the wooden shelves where they would be sold, and displayed in their shipping cases. At Cub Foods, which he and three partners founded in Minnesota in 1968, Mr. Hooley and his family dispensed with price tags on each item. (This was before bar codes.)”

“Instead, Cub gave shoppers black grease pencils to carry with them through the store. They read the price for a can of soup or box of cereal off its shipping case, then scrawled it on the item themselves. Checkout clerks tallied up a total from the prices a shoppers had written on their groceries. Fewer workers to individually price and stock Cub’s shelves meant lower prices overall.”

“In 1980, Mr. Hooley and his partners sold Cub Foods—an acronym for Consumers United for Buying—to Supervalu, which expanded Cub to more than 100 stores in 13 states. Mr. Hooley remained at Supervalu as Cub’s president until 1981.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Kicks: How Sneakers Sneaked Up

The Wall Street Journal: “How on earth have people who make freaking footwear apparently managed to reduce athletic powerhouses like USC and Louisville to the role of glorified money launderers? It all comes down to the outsize importance of sneakers in popular culture. In his expansive, thorough and entertaining book ‘Kicks: The Great American Story of Sneakers,’ author Nicholas Smith traces the history of this $20 billion industry, arguing that the power and allure of the shoe have shaped American business and fashion for decades.”

“Their manufacturers have thus become economic forces larger than the sports they’re supposedly there to support. In many ways, to hear Mr. Smith tell it, the shoes have been wearing us.’Kicks’ serves as a comprehensive look at how much the sneaker became a signature indicator of cool, from Chuck Taylor and his Converse All-Stars to Clyde Frazier’s Pumas to Run-DMC and their Adidas to, of course, Michael Jordan.”

“Today, the author suggests, sneakers have essentially replaced music as the go-to investment for companies looking at getting into the youth market. They have become so popular that most manufacturers make limited-edition shoes that exist solely to become valuable and are almost never worn. The shoes aren’t for wearing; they’re simply for having.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail