Grocery Roundup: Kroger Expands Virtual Food Court Partnership; Aldi Opens Frictionless Store

As grocers look to win consumers’ loyalty, many are seeking to meet a greater share of their shoppers’ food needs, offering not only raw ingredients but also restaurant-made meals. The Kroger Co., for its part, the United States’ largest pure-play grocer, announced Monday (July 18) that it expanded its partnership with virtual restaurant brand Kitchen United to bring restaurant offerings into stores.

The two companies are opening a new Kitchen United MIX location at a Kroger supermarket in Dallas, an off-premise-only multi-brand restaurant including a range of local and national chains such as Capriotti’s Sandwich Shop and Carl’s Jr.

In a statement, Kroger’s group vice president of fresh merchandising Dan De La Rosa directly addressed the grocer’s goal to be consumers’ go-to merchant to meet their cross-category food needs.

“When our customers think of food, they think of Kroger,” De La Rosa said. “The Kitchen United collaboration provides the fresh, on-demand meals our customers crave. It is one more innovative example of how Kroger is fulfilling its commitment to anything, anywhere, anytime.”

The first virtual food court from this partnership opened at a Ralphs location in Los Angeles in January.

Read more: Kroger Moves into Restaurant Space

Aldi Opens First Frictionless Store

Nine months after first announcing the partnership, Essen, Germany-based global discount grocery chain Aldi and Tel Aviv, Israel-based retail technology company Trigo opened their first cashier-less grocery store together Monday.

Related news: Aldi Goes Cashierless

The roughly 4,000-square-foot store in the Netherlands’ Utrecht leverages artificial intelligence (AI) technology, using shelf censors and ceiling cameras, to allow consumers to pick items off shelves and walk out of stores, having items automatically charged to their accounts a la Amazon’s Just Walk Out. The location is Trigo’s largest store yet.

“We … always use technology where it specifically makes us better and faster,” Sinanudin Omerhodzic, chief technology officer at Aldi Einkauf SE. & Co. oHG, said in a statement. With ALDI Shop & Go, we have developed a concept that brings together the discount idea and computer vision technology — always with the aim of making shopping as easy as possible.”

In an interview with PYMNTS last year, Yair Holtzer, Trigo’s vice president of business development, predicted that, over the next few years, frictionless checkout would grow in scope, with a proliferation both of frictionless small-format convenience stores in dense, urban areas and of AI-powered larger-format supermarkets.

“In five years, I believe that you will have thousands of autonomous stores,” Holtzer said. “You will be able to still buy in the traditional way, if you want … but you will also be able to choose the green lane to just walk in, grab the items and walk out.”

You may also like: Frictionless Checkout Brings eCommerce Convenience into Stores to Drive Conversion

The Fresh Market Reverses Course on IPO Plans

While 2021 was a big year for food and beverage initial public offerings (IPOs), as economic conditions have turned throughout this year, some companies are reevaluating their future on the public market. The Fresh Market, for one, the Greensboro, North Carolina-based specialty grocery retailer with 159 stores across 22 U.S. states, is backtracking on its IPO plans.

The grocer filed with the United States Securities and Exchange Commission (SEC) on July 13 to withdraw its registration statement filed a year ago, stating that, “at this time,” it does “not intend to pursue the contemplated public offering.”

Initially, the company planned to use the IPO to refinance much of the $934 million in outstanding debt incurred in its acquisition by Apollo Global Management in April of 2016.

See also: The Fresh Market Proceeds With IPO With Focus On Grocerant And Meal Kits

The news came less than two weeks after Panera Brands, the fast-casual group comprised of Panera Bread, Caribou Coffee and Einstein Bagels, announced at the beginning of the month that it has ended its planned partnership with Danny Meyer’s special purpose acquisition company (SPAC) USHG Acquisition Corp. (HUGS) to go public via IPO with the latter as a cornerstone partner.

Additional details: Panera Ends IPO Plans With Danny Meyer’s SPAC, Citing Souring Economy

Albertsons’ Chief Digital Officer Departs

Grocery giant Albertsons Cos., like its competitors, has undergone an enormous digital transformation since March 2020, building out its online grocery business with new memberships and loyalty offerings and opening micro-fulfillment centers (MFCs) to fulfill eCommerce orders, among other digital upgrades.

Now, however, the person who has spearheaded this evolution as Chief Customer and Digital Officer Chris Rupp is leaving to be Victoria’s Secret’s chief customer officer, per an announcement from the lingerie brand on July 12.

“We made incredible progress, opening up access to delivery and drive up services in hundreds of communities and on new platforms … and that was just the beginning,” Rupp said of Albertsons’ pandemic response in a LinkedIn post discussing her departure. “A couple of years later — we have delivered so many great experiences to our customers, I couldn’t be more proud. So it is time for me to move on to the next adventure.”