A look back at the year in grocery

It’s been quite the year for the grocery industry, between the will-they-won’t-they drama of the Kroger-Albertsons merger, store openings and closings, (or, in the case of Foxtrot, stores closing and then opening), and the big private-label push. Here were the top stories from the year in grocery.

The Kroger-Albertsons saga: This year saw Kroger and Albertsons quickly shift from potential merger partners to adversaries. After Kroger and Albertsons announced their plans to merge in October 2022, the grocery world eagerly anticipated the Federal Trade Commission’s response—and it came in February, when the agency announced it was suing to block the deal, issuing administrative and federal complaints. The FTC claimed the merger would lead to elevated grocery prices, reduce product quality, and give consumers fewer grocery options.

The retailers pushed back, and in August, Kroger sued the FTC, saying its proceeding in administrative court was unconstitutional. In September, it faced off with the FTC in federal court in the District of Oregon during a three-week trial, raising questions about the definition of “competition” within the grocery industry. Trials in Colorado and Washington followed. In November, Kroger’s CMO Stuart Aitken, who testified in the hearings, left the retailer to lead Circana as CEO.

Then, on December 10, two rulings arrived within an hour of each other, with Oregon Judge Adrienne Nelson siding with the FTC to block the merger, followed by a similar ruling by Judge Marshall Ferguson in Washington. Nelson ruled that supermarkets are a “category of stores that compete with each other,” and thus the deal would limit competition.

The ruling largely spelled doom for the merger, and next day, Albertsons announced it had terminated the agreement and was suing Kroger, seeking hundreds of millions of dollars in damages and claiming the company failed to do its best to secure regulatory approval. Kroger said its claims were “without merit.” And just like that, the new year brings a new lawsuit for the two to contend with—this time, on opposing sides.

Private label popularity rises: Retailers doubled down on private label this year as consumers sought more value, and these brands maintained relevance even as grocery inflation has cooled. In April, Walmart debuted its “elevated” private label line Better Goods, CVS introduced its Well Market brand and Gopuff rolled out Basically Premium in May, and in September, Albertsons announced its new brand Overjoyed while Amazon released Amazon Saver.

Ahold Delhaize this year said that as part of its new “Growing Together” strategy, it plans to grow its own brand to be 45% of total store sales. Private label’s expanding presence in grocery has led to an interesting dynamic between store and national brands—a notable topic at this year’s Groceryshop, with Ahold Delhaize CEO Frans Muller along with leaders from PepsiCo and Sam’s Club weighing in.

Openings and closings: Stop & Shop closed 32 underperforming stores, as Muller said Ahold Delhaize had not “paid enough attention” on its “core attributes” like location and assortment. Whole Foods also opened the first of several new convenience-focused small format Daily Shop stores in New York City.

And then there’s Foxtrot, which closed—and then opened—this year. In April, Foxtrot and Dom’s Kitchen and Market abruptly announced they were ceasing operations, shocking workers, consumers, and brands (the latter of which were supported by Misfits Market). The next month, parent company Outfox Hospitality filed for Chapter 7 bankruptcy following a foreclosure sale of Outfox’s assets, which were bought by Further Point Enterprises. Now, with a new parent in Further Point, Foxtrot has reopened several locations in Chicago with plans for more, per Eater Chicago, this time featuring fewer SKUs.

M&A moves: Some big CPGs shook up their portfolio. In August, Mars bought Kellanova, maker of Pringles, Cheez-Its, and Pop-Tarts, for $36 billion. When PepsiCo announced plans to buy Siete Foods for $1.2 billion in October, consumers took to social media to express concerns the deal would lead to a decline in product quality. In December, rumors swirled that Mondelez International is looking to acquire Hershey, bringing together two sweets and snacks CPG giants with combined sales of $50 billion, Bloomberg reported.

The continued rise of Walmart: As Kroger and Albertsons work to compete with Walmart, the country’s largest grocer continued to win this year. It debuted Better Goods, and announced plans to open five automated fresh food distribution centers. The retailer said food sales outpaced general merchandise sales in Q2, and also grabbed 37% of online grocery market share that quarter, according to Brick Meets Click.