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Walmart cuts out middlemen with first-ever beef facility as prices soar
Fox Business· 2025-06-30 16:51
Core Insights - Walmart has opened its first owned and operated case-ready beef facility in Kansas to eliminate middlemen and control costs amid rising beef prices [1][2] - The facility, spanning 300,000 square feet, will package and distribute Angus cuts sourced from Sustainable Beef LLC to 600 stores in the Midwest, enhancing transparency and capacity in the beef supply chain [2][6] - This strategic move is expected to lower costs, allowing Walmart to offer competitive pricing as beef prices continue to rise [7][9] Company Strategy - Walmart's investment in Sustainable Beef LLC in 2022 is part of its initiative to create an end-to-end supply chain for Angus beef, sourcing cattle from a 250-mile radius [5] - The establishment of the case-ready facility is aimed at improving quality, traceability, and supply chain strength in the concentrated U.S. beef industry [6][12] - The company is also focusing on enhancing its fresh food perception, particularly in produce and protein categories, to attract higher-income households [12][14] Market Context - As of May, beef and veal prices increased by 8.6% year-over-year, with projections indicating a further rise of 6.8% due to tight supplies and strong consumer demand [9][10] - Current cattle supplies are at a 74-year low, contributing to the increase in wholesale prices and ultimately affecting consumer prices [10]
SFM & 3 Retail Stocks Holding Strong as Consumer Confidence Slips
ZACKS· 2025-06-30 15:31
Consumer Sentiment and Economic Outlook - U.S. consumer sentiment declined in June, with the Conference Board's Consumer Confidence Index dropping by 5.4 points to 93.0 from 98.4 in May, indicating growing unease among households [1] - The Present Situation Index fell 6.4 points to 129.1, while the Expectations Index slipped 4.6 points to 69.0, reflecting concerns over job security and economic challenges [2] Trade Policies and Geopolitical Tensions - Ongoing concerns over trade policies, particularly tariffs, are a primary driver behind the decline in consumer confidence, as they are perceived as threats to economic stability [3] - Escalating geopolitical tensions have further weighed on consumer outlook [3] Company Performance and Positioning - Companies like Sprouts Farmers Market, Urban Outfitters, Costco, and BJ's Wholesale Club are better positioned to navigate shifts in consumer behavior despite the overall decline in consumer confidence [4][9] - Sprouts Farmers Market focuses on product innovation, competitive pricing, and a commitment to fresh, natural, and organic products, with a Zacks Consensus Estimate indicating sales growth of 13.7% and EPS growth of 35.5% for the current financial year [6][7] Urban Outfitters' Strategy - Urban Outfitters leverages its multi-brand strength and digital reach, with major brands showing momentum across channels, and a Zacks Consensus Estimate suggesting sales growth of 8.5% and EPS growth of 22.2% [11][12] Costco's Membership Model - Costco effectively navigates market fluctuations through strategic investments and a customer-centric approach, with a focus on high membership renewal rates and competitive pricing, expecting sales growth of 8.1% and EPS growth of 12% [12][13] BJ's Wholesale's Growth Drivers - BJ's Wholesale emphasizes membership growth and digital innovations, enhancing omnichannel capabilities and targeting high-growth regions, with a Zacks Consensus Estimate indicating sales growth of 5.5% and EPS growth of 6.2% [14][15]
Kroger (KR) is a Top-Ranked Momentum Stock: Should You Buy?
ZACKS· 2025-06-30 14:56
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Develo ...
Celebrate a Good4u 4th of July with Picnic Deals from Natural Grocers®
Prnewswire· 2025-06-26 22:13
Core Insights - Natural Grocers is promoting its offerings for the July 4th holiday, emphasizing affordable prices and seasonal products to enhance celebrations [1][4] - The company has introduced a rewards program called {N}power, which provides members with exclusive discounts and promotions [2][5] - A collection of festive recipes has been curated to help customers prepare for Independence Day celebrations [3][6] - The company is planning additional summer savings events beyond July 4th, including a "Splash into Savings Event" [4] Promotions and Offers - From June 27 to July 3, Natural Grocers is offering various deals on grilling essentials and summer treats [1][5] - {N}power members can enjoy a 10% discount on alcohol purchases at select locations during the same promotional period [5][9] - A "Spend and Win" promotion allows {N}power members who spend $100 or more to enter a sweepstakes for a chance to win prizes, including a trip to Lake Tahoe [5][10] Product Highlights - Featured products include Field Roast Select Plant-Based Sausages priced at $4.29 per pack and Pederson's Natural Farms Old-World Pork Kielbasa at $5.15 per pack [5] - Other highlighted items include Siete Potato Chips for $2.59 and Woodstock Organic Kosher Pickles for $4.69 [5] Company Overview - Natural Grocers by Vitamin Cottage, Inc. was founded in 1955 and operates as a specialty retailer of natural and organic groceries, body care products, and dietary supplements [7] - The company adheres to strict quality guidelines, ensuring products are free from artificial ingredients and only sell USDA-certified organic produce [7] - Natural Grocers has 169 stores across 21 states and is committed to community engagement and employee welfare, investing over $15 million in employee compensation in fiscal year 2024 [7]
Kroger(KR) - 2025 FY - Earnings Call Transcript
2025-06-26 16:00
Financial Data and Key Metrics Changes - The company reported a strong first quarter with significant identical sales growth driven by pharmacy, ecommerce, and fresh categories [34] - A dividend increase from $1.28 to $1.40 per year was approved, marking the 19th consecutive year of dividend increases [38] Business Line Data and Key Metrics Changes - The ecommerce segment experienced double-digit growth, indicating a successful strategy in online sales [54] - The company plans to complete 30 store projects in 2025, maintaining the same level as the previous year, with intentions to increase this number in 2026 and beyond [54] Market Data and Key Metrics Changes - The company lowered prices on over 2,000 additional products in the first quarter, aiming to make savings more visible to customers [52] - The competitive pricing environment remains rational, with a focus on keeping prices affordable to attract more customers [51] Company Strategy and Development Direction - The company is focusing on core retail business investments, including lower prices and extended store hours, funded by reducing corporate expenses [34] - A strategic reevaluation of non-core assets is underway to enhance focus on the primary business [33] Management's Comments on Operating Environment and Future Outlook - Management emphasized the need to adapt quickly to competition, particularly in ecommerce, to improve profitability and customer base [35] - The company is committed to investing in associates, having increased average store hourly pay by 38% over the past seven years [36] Other Important Information - The company has donated over 3.4 billion meals through its Zero Hunger, Zero Waste plan, showcasing its commitment to community support [38] - The board of directors expressed confidence in the company's strategy through the approved dividend increase [39] Q&A Session Summary Question: Update on the CEO search - The board has a search committee in place working with a recognized search firm, while the current CEO remains committed to leading during the transition [48] Question: Raising employee wages in line with cost of living - The company has invested $2.4 billion in wages since 2018, resulting in a 38% increase in average hourly store wages [49] Question: Pricing strategies in a competitive environment - The company is focused on lowering prices to attract customers, having reduced prices on over 2,000 products in the first quarter [52] Question: Store plans and future growth - The company is on track to complete 30 store projects in 2025 and plans to close approximately 60 underperforming stores, reallocating resources to new store growth [55] Question: Approach to customer health data requests - The company prioritizes customer trust and has a team ensuring compliance with data protection laws [56] Question: Justification of executive pay ratios - Compensation is based on various factors, and the company continues to invest in associates' wages and benefits [58] Question: Board's stance on supporting farm workers - The company believes its existing standards for suppliers make the shareholder proposal unnecessary [60] Question: Impact of proposed changes to SNAP on sales - The company is prepared to navigate changes to the SNAP program without expecting a significant impact on sales [61] Question: Alignment of waste reduction vision with cigarette waste proposal - The company views the cigarette waste proposal as redundant given its existing waste reduction commitments [63] Question: Thoughts on changing tariff situations - The company is monitoring tariff changes and is prepared to manage any potential cost impacts [65]
Metro Celebrates the MVPs of Summer: Ontario Farmers and Producers
Globenewswire· 2025-06-26 11:00
The Grocer is proud to highlight its commitment to supporting local, by celebrating the true MVPs of the season—Ontario farmers and producers who bring the freshest summer items to our tables.Toronto, June 26, 2025 (GLOBE NEWSWIRE) -- This summer, Metro is celebrating the heart of Ontario’s food scene by shining a spotlight on the true MVPs of the season—local farmers and producers who bring fresh, flavourful ingredients to tables across the province. With record levels of interest in Canadian-grown and pro ...
Amazon is taking on Walmart's rural dominance with its latest delivery push
Business Insider· 2025-06-25 21:14
Group 1 - Amazon is expanding its same-day and next-day delivery service to over 4,000 smaller communities, enhancing its stock of everyday essential items at delivery stations [1][2] - The competition between Amazon and Walmart intensifies as both companies target rural markets, with Walmart having a strong presence through its 4,600 stores located within 10 miles of 90% of the US population [2][3] - Rural households account for approximately 20% of personal consumption spending in the US, equating to $1 trillion annually, which presents a significant opportunity for Amazon [4] Group 2 - Walmart is recognized as the leading grocery retailer in the US, while Amazon offers a vast assortment of products for delivery [5] - Both companies are leveraging their strengths; Walmart is promoting its marketplace for diverse products, while Amazon is utilizing AI to optimize inventory for same-day delivery of essential items [6] - Groceries are a key driver for both companies' delivery services, with a higher percentage of urban shoppers ordering groceries online compared to rural shoppers, indicating potential growth in rural areas [7][8]
Grocery Outlet Announces Fifteenth Annual Independence from Hunger® Campaign
Globenewswire· 2025-06-25 12:30
Core Points - Grocery Outlet Holding Corp. has launched its 15th annual Independence from Hunger® (IFH) Food Drive to address food insecurity from June 25 to July 31, 2025 [1][2] - The campaign has collected over $25 million in cash and food donations since its inception in 2011, benefiting local food agencies [1][3] - According to the USDA, 13.5% of U.S. households, or 18 million, face food insecurity, with summer months exacerbating the issue for 22 million children [2] Company Overview - Grocery Outlet is a high-growth, extreme value retailer based in Emeryville, California, operating over 540 stores across multiple states [3] - The company focuses on providing quality, name-brand consumables and fresh products through a network of independently operated stores [3] Campaign Participation - Customers can participate by donating $5 or more to receive a coupon for $5 off a future purchase, purchasing pre-made bags of groceries for donation, or making monetary donations in-store or online [4]
Has Sprouts Farmers Market's Gross Margin Expansion Peaked?
ZACKS· 2025-06-24 16:31
Core Insights - Sprouts Farmers Market, Inc. (SFM) achieved a gross margin of 39.6% in Q1 2025, reflecting a 129-basis-point increase year-over-year, attributed to improved inventory and category management, as well as shrink leverage [1][7] - The company anticipates a normalization of gross margin starting in Q2 2025, with expected expansions of 50 basis points in Q2, followed by modest increases of 10 basis points in Q3 and Q4 [2] - Despite the expected normalization in gross margin, SFM projects continued EBIT margin expansion due to advancements in its supply-chain strategy, including self-distribution of fresh meat and seafood [3] Company Performance - SFM's stock has increased by 36.4% year-to-date, outperforming the industry growth of 14.3% [6][7] - The forward 12-month price-to-sales ratio for SFM is 1.84, significantly higher than the industry average of 0.26, indicating a higher valuation multiple [8] Financial Estimates - The Zacks Consensus Estimate for SFM's current financial-year sales suggests a year-over-year growth of 13.7%, while earnings per share are projected to grow by 35.5% [9] - For the current quarter (ending June 2025), the consensus estimate for sales is $2.17 billion, with a year-over-year growth estimate of 14.51% [12] - The earnings per share estimate for the current quarter is $1.23, reflecting a year-over-year growth of 30.85% [13]
Natural Grocers® Invites Mission, Kansas, Customers to Celebrate Store's 10th Anniversary June 27-29, 2025
Prnewswire· 2025-06-24 11:38
Core Insights - Natural Grocers has been a reliable source for organic and natural groceries in Southwest Kansas City since its opening in 2015, adhering to its Five Founding Principles [1][5] - The company celebrates its 10th anniversary in the Mission community, highlighting the alignment of its values with the community's focus on health and wellness [2] Company Overview - Founded in 1955, Natural Grocers by Vitamin Cottage, Inc. (NYSE: NGVC) specializes in natural and organic groceries, body care products, and dietary supplements, with strict quality guidelines [5] - The company operates 169 stores across 21 states, providing USDA-certified organic produce and pasture-raised dairy products [5] Anniversary Promotions - To celebrate its 10th anniversary, Natural Grocers is offering limited-time deals for {N}power members, including surprise offers and $10 deals from June 27 to June 29 [3][4] - Customers can join the {N}power rewards program for free to access these offers, which include specific product discounts [4][7]