Currently browsing posts about: Supermarkets

As I discussed in my book, What to Eat, the entire purpose of a grocery store or supermarket is to encourage sales, particularly impulse buys of profitable items.  Food and beverage companies pay stores to place their most profitable products where customers can most easily see them.

This makes checkout counters prime grocery real estate.

Mars Wrigley tells you how this works.

Mars Wrigley showcases new impulse shopping solutions and products

Mars Wrigley said its multifaceted merchandising solutions will shape impulse throughout the shopper journey and provide an effective retail experience, be it at curbside pick-up, online or in-store.

The company is set to work alongside retail partners to implement solutions that reimagine impulse at checkout and identify new spaces in aisle and digitally to optimise category presence and drive conversion [i.e., sales].

Spearheading this growth is its new Accelerating Impulse Moments (AIM) insights platform. This four-pillar platform consists of conversion strategies for retailers across all channels in stores and online, with Snacks Aisle Optimization, Secondary Display Growth, Transaction Zone Reinvention and Digital Solutions Execution.

These strategies will help retailers shape impulse throughout the shopper journey to create an effective and engaging omni-channel experience.

Comment: You are the subject of this “effective and engaging omni-channel experience.”  This may look as if it is about helping grocers market products, but it is really about getting you to buy candy and chewing gum.

Brookings has a new report: Windfall profits and deadly risks: How the biggest retail companies are compensating essential workers during the COVID-19 pandemic.

We find that while top retail companies’ profits have soared during the pandemic, pay for their frontline workers—in most cases—has not. In total, the top retail companies in our analysis earned on average an extra $16.9 billion in profit this year compared to last—a stunning 39% increase—while stock prices are up an average of 33%. And with few exceptions, frontline retail workers have seen little of this windfall. The 13 companies we studied raised pay for their frontline workers by an average of just $1.11 per hour since the pandemic began—a 10% increase on top of wages that are often too low to meet a family’s basic needs. On average, it has been 133 days since the retail workers in our analysis last received any hazard pay.

In a blog about this report, Judd Legum and Tesnim Zekeria summarize its findings in these headlines:

• Bezos gets $73 billion; Amazon workers get 95 cents per hour
• CVS profits increase 27%; CVS workers get 2% raise
• Walton family adds $45 billion to its wealth; Walmart workers get 63 cents per hour
• Kroger cancels “hero pay,” authorizes $1 billion stock repurchases

How are these workers getting by?  Federal food assistanc.  A new government report has the data.

The report is titled “FEDERAL SOCIAL SAFETY NET PROGRAMS: Millions of Full-Time Workers Rely on Federal Health Care and Food Assistance Programs.”

It finds that roughly half of Medicaid and SNAP enrollees work at least 35 hours a week, but make so little money that they qualify for these programs.

The employers of low-wage workers who get federal benefits are companies like Walmart, McDonald’s, Waffle House, Kroger, Burger King, and Wendy’s.

What this means is that taxpayers are making up the shortfall in wages, and that use of Medicaid and SNAP are externalized costs of these businesses, as these reports make clear.

I was sent a press release announcing a set of research papers on retail strategies to improve healthy eating.  Most people buy food at supermarkets, but supermarkets are not public health agencies.  They are businesses with one purpose: to make money for owners and stockholders.  As I discussed in my book, What to Eat, they are designed to keepyou in the store as long as possible so you will have plenty of time to impulse-buy.  These papers in the  International Journal of Environmental Research and Public Health discuss ways retail food stores could help diets get healthier.

They come with a new report outlining a research agenda for retailers.  All of this was funded by Healthy Eating Research, a national program of the Robert Wood Johnson Foundation in partnership with the Center for Science in the Public Interest (CSPI), the Johns Hopkins Bloomberg School of Public Health, and The Food Trust.

The full issue of the journal is here.

Special issue: Retail Strategies to Support Healthy Eating

• Developing A National Research Agenda to Support Healthy Food Retail
  By Amelie A. Hecht, Megan M. Lott, Kirsten Arm, Mary T. Story, Emily Snyder, Margo G. Wootan and Alyssa J. Moran
• Urban vs. Rural Socioeconomic Differences in the Nutritional Quality of Household Packaged Food Purchases by Store Type
  By Allison Lacko,Shu Wen Ng and Barry Popkin
• A Model Depicting the Retail Food Environment and Customer Interactions: Components, Outcomes, and Future Directions
  By Megan R. Winkler, Shannon N. Zenk, Barbara Baquero, Elizabeth Anderson Steeves, Sheila E. Fleischhacker, Joel Gittelsohn, Lucia A Leone and Elizabeth F. Racine
• Healthy Food Retail during the COVID-19 Pandemic: Challenges and Future Directions
  By Lucia A. Leone, Sheila Fleischhacker, Betsy Anderson-Steeves, Kaitlyn Harper, Megan Winkler, Elizabeth Racine, Barbara Baquero and Joel Gittelsohn
• Understanding the Intersection of Race/Ethnicity, Socioeconomic Status, and Geographic Location: A Scoping Review of U.S. Consumer Food Purchasing
  By Chelsea R. Singleton, Megan Winkler, Bailey Houghtaling, Oluwafikayo S. Adeyemi, Alexandra M. Roehll, JJ Pionke and Elizabeth Anderson Steeves
• Improving Consumption and Purchases of Healthier Foods in Retail Environments: A Systematic Review
  By Allison Karpyn, Kathleen McCallops, Henry Wolgast and Karen Glanz
• Associations between Governmental Policies to Improve the Nutritional Quality of Supermarket Purchases and Individual, Retailer, and Community Health Outcomes: An Integrative Review
  By Alyssa J. Moran, Yuxuan Gu, Sasha Clynes, Attia Goheer, Christina A. Roberto and Anne Palmer
• Influence of Food and Beverage Companies on Retailer Marketing Strategies and Consumer Behavior
  By Amelie A. Hecht, Crystal L. Perez, Michele Polascek, Anne N. Thorndike, Rebecca L. Franckle and Alyssa J. Moran
• (Publication Pending) Supermarkets in Cyberspace: A Conceptual Framework to Capture the Influence of Online Food Retail Environments on Consumer Behavior
  

Craig B. Upright.  Grocery Activism: The Radical History of Food Cooperatives in Minnesota.  University of Minnesota Press, 2020.

I was interested to read this book because I was a member of the Berkeley Co-op grocery store on Shattuck Avenue back in the day and am a member of the Ithaca Co-op now.  Co-ops are member-owned.

Upright based this book on his doctoral thesis about the history of the co-op movement in Minnesota, which aimed to promote production and sales of organic foods.

It is important to study these stores and their stories because it is difficult to understand what “organic” means today without knowing what it could have been, without exploring how this new product, sold in these unconventional settings, attracted the passions of those who wanted to make their world a better place (p. 5).

The difficulty, as Upright puts it, was in trying to run a business and a social movement in one space.

A co-op will cease to exist if it continually operates at a loss.  But co-ops are generally not oriented toward generating a profit.  In fact, state laws often dictate that surplus revenues must be reinvested in the organization or returned to its members…Remaining true to their social values helps maintain the patronage and support of the members who consciously choose to participate, thus keeping the business viable (p. 79).

Upright explains the social-movement origins:

Between 1971 and 1975, co-ops promoted ideologies of opposition to larger capitalistic structures.  Particularly in the Twin Cities, new-wave co-ops opened primarily in areas characterized by institutions of higher learning and strong leftist political leanings.  They formed as art of a larger rejection of mainstream economic policies, attempting to place more power in the hands of lower-income consumers; the array of foods they sold reflected a liberal cultural and political agenda, balanced by the need to sell enough product of any kind to stay in business (p. 125).

This movement was important because in many ways, it succeeded.

The goal so many worked toward…has been achieved; organic food has now achieved mainstream acceptance.  Even so, cooperatives thrive…The social change many championed when this movement began more than forty years ago—the hope that they could challenge the dominance of prevailing agricultural paradigms—has been realized without leading to the irrelevance of co-ops (p. 210).

The USDA has a pilot program that permits most low-income families enrolled in SNAP (formerly food stamps) to use their benefits to buy groceries online.

This could be convenient and protect participants from Covid-19 exposure.

But food will be more expensive: SNAP does not cover delivery costs.

Only a few retailers at the moment can accept SNAP benefit payments: Amazon, Walmart, Fresh Direct, and Safeway/Albertson’s.

This situation has induced the Center for Digital Democracy (CDD) to publish a research report that raises some serious questions.

According to the press release, the pilot program exposes SNAP participants

to a loss of their privacy through “increased data collection and surveillance,” as well as risks involving “intrusive and manipulative online marketing techniques.” The report reveals how online grocers and retailers use an orchestrated array of digital techniques—including granular data profiling, predictive analytics, geolocation tracking, personalized online coupons, AI and machine learning —to promote unhealthy products, trigger impulsive purchases, and increase overall spending at check-out….The increased reliance on these services for daily food and other household purchases could expose these consumers to extensive data collection, as well as unfair and predatory techniques, exacerbating existing disparities in racial and health equity.”

On the basis of this report, several advocacy groups jointly wrote the USDA Secretary to make sure that these retailers do not unfairly target or take advantage of SNAP participants.

Our request is based on a new study by the Center for Digital Democracy (CDD), which finds that leading online grocery and e-commerce companies…are engaged in extensive data profiling, and deploying geolocation tracking, artificial intelligence, machine learning, and behavioral science techniques to track and target consumers, promote unhealthy products, and trigger impulsive purchases. Most of these operations are largely invisible, and CDD’s analysis of the companies’ privacy policies reveals that they fail to protect consumers from these data collection, targeting, and predatory marketing practices.

The letter has several “asks,” among them:

• Forbid the use of techniques that take advantage of consumers’ psychological vulnerabilities, or employ manipulative practices designed to foster impulsive behavior.
• Require participating retailers to prioritize healthier products in their ecommerce and online promotion efforts, discounts, and coupons.
• Facilitate the participation of smaller, independent retailers, farmers markets and other local produce suppliers.

These groups also plan to ask Congress to conduct oversight hearings.

It’s terrific that these groups are keeping an eye on this program.

I’m curious to see the percentage of SNAP participants who use the program and are willing to pay the higher delivery costs.

I imagine that the big retailers are for it.  As was documented in Michele Simon’s 2012 report—Food Stamps: Follow the Money—for some time, retailers are SNAP’s greatest beneficiaries.

Read these and you will be up to date on anything known about food systems in the age of COVID-19.

FAO and Hopkins Dashboard

This gives data on aspects of food systems—supply chains, food environments,  consumer behavior, diets and nutrition, and the effects of key drivers like climate change and income, 170 indicators in all—on the food systems of 230 countries and territories.  This is one-stop shopping for this kind of information.

• Press release 
• The Dashboard 

“What struck us back in 2017 while working on the UN High Level Panel of Experts on Food Systems and Nutrition Report was the lack of accessible, organised, quality-checked information on food systems. Without that data, it’s difficult to identify the best evidence-based actions that could improve food systems,” said Johns Hopkins Global Food Ethics and Policy Program Director Jessica Fanzo. “It was really important to us, given the level of complexity and interconnections inherent to food systems, that the data be presented in a way that is easily usable – and that’s what the Dashboard does. Now decision makers have easy access to both data and to policy advice that is specific to their situations.”

Oxfam: “Exposed: How US supermarkets are failing their workers in a global pandemic”

Oxfam analyzed the formal policies of major US supermarkets during the first months of the pandemic, including Albertsons/Safeway, Costco, Kroger, Walmart, and Whole Foods/Amazon in five key areas: paid sick leave, hazard pay, protective gear, engagement with workers and worker representatives, and gender and dependent care. While all of these supermarkets stepped up some of their policies, none of them are doing nearly enough as they continue to make outsized profits on the backs of their low-wage workers.

Here are the Press release and the report.

CGIAR: Actions to Transform Food Systems Under Climate Change

Nothing short of a systemic transformation of food systems is required if we are to feed the world’s current and future population sustainably under climate change…we aimed to identify the high priority actions that we must collectively take now, for climate change adaptation and mitigation in food systems.  [Note: CGIAR was formerly the Consultative Group for International Agricultural Research, but now goes just by CGIAR]

Here is the report.

HLPE [High Level Panel of Experts] 15: Fooc Security and Nutrition: Building a Global Narrative Towards 2030.

Following the emergence of the COVID-19 pandemic, the HLPE was asked to urgently prepare an issues paper on the potential impact of the pandemic on global food security and nutrition for an extraordinary meeting of the CFS on 19 March 2020. The key findings and recommendations from this issues paper have been updated and included in this report…The current COVID-19 crisis is unprecedented in its global scale and the situation is changing rapidly, with many unknowns. It serves as a reminder of the fragility of the global food system and the importance of global coordination.

Here is the report.

This is what the bagged salad section of the Wegmans in Ithaca, New York, looked like early last Friday morning (right after the store opened for the day).

Thanks to Stephanie Borkowsky for the photo.

Shane Hamilton.  Supermarket USA: Food and Power in the Cold War Farms Race.  Yale University Press, 2018.

I did a blurb for this one:

Who knew that supermarkets, of all things, were key elements of U.S. free-enterprise, anti-Soviet, Cold War propaganda.  Hamilton fully explains how “farm wars” led directly to today’s international industrial agribusinesses.   This superb book is a must-read.