Over the past six months, Walmart’s metrics have been as strong as ever; perhaps even more powerful than 30 years ago when the Bentonville, AR-based merchant zoomed to the top of the food retail charts, but also during a time when the retail landscape was less competitive and economic factors were not nearly the concern they are today.
In actuality, Walmart has been on a roll since COVID first began in early 2020, but in the past 10 months the company has experienced even greater measurable success.
Since January 1, Walmart’s stock price has increased more than 20 percent to $109 per share and its financial reports are among the best in the overall retail industry when considering key metrics: each week, approximately 270 million customers and members visit more than 10,750 stores and numerous e-commerce websites in 19 countries. With fiscal year 2025 revenue of $681 billion, Walmart employs approximately 2.1 million associates worldwide.
And the financial metrics are equally impressive when comparing overall sales, comp store sales, net earnings, average ring, and basket size against all of its competitors. Moreover, after investing multiple billions in developing a full-service digital business beginning in 2017, the “Behemoth” posted its first ever profitable e-comm quarter earlier this year. Digitally, it’s still not nearly at the level of Amazon, but Walmart+ is now aggressively challenging “Godzilla” for new and renewal digital customers.
And to add more fuel to its engine, Walmart earlier this month announced that its has partnered with Open AI, giving the retailer’s customers an opportunity to utilize ChatGPT for multiple services including creating shopping lists, meal planning, restocking, finding new products and using Instant Checkout.
Walmart also believes that at the center of this transformation are the everyday moments that define how people shop. “This is agentic commerce in action: where AI shifts from reactive to proactive, from static to dynamic,” Walmart emphasized. “It learns, plans and predicts, helping customers anticipate their needs before they do,” adding, “as Walmart defines what’s next for retail, its approach remains the same: people-led and tech-powered, helping people save money and live better. The future of retail isn’t about replacing human connection with machines, it’s about using AI to remove friction and make everyday moments easier, smarter and more delightful.”
According to the brilliant Scott Moses, partner at Wall Street investment firm Solomon Partners, at $342 billion in U.S. grocery-only sales, Walmart amasses more than three times the grocery volume of Kroger and Costco each, and when adding in the grocery revenue of Amazon and Albertsons, it produces greater volume than the next four leading retailers’ food sales combined.
According to Moses’ research, grocery now accounts for 62 percent of Walmart’s U.S. annual revenue, an increase from 40 percent in 2005. And as mentioned earlier, its investment in digital is paying off – the “Behemoth” now commands 39 percent ($80 billion) of the country’s online business. Additionally, there are now 27 million Walmart+ members, and its compound annual growth rate (CAGR) over the past five years has reached 40 percent.
There’s no other way to describe it – the numbers are both spectacular and frightening.
‘Round The Trade
Here’s a question for you: does Amazon really care about retail grocery? CEO Andy Jassy always talks a big grocery game, but (other than Whole Foods, which it acquired), have you seen a more disappointing display of food retailing over the past five years than what Amazon Fresh has shown? Then again, taking into account that its Amazon Web Services (AWS) unit produced an annual profit of nearly $40 billion on $106.7 billion of annual sales, its advertising services division contributed $56.2 billion in annual revenue, and its “Prime” membership subscription income is reported to be about $33 billion a year (before the first SKU is sold or shipped), maybe product mix and in-stock levels really don’t mean that much.
A triumvirate of industry trade associations – FMI, NGA and NACS – has issued a new study noting that the up-front cost of implementing the new SNAP restrictions could be as high as $1.6 billion. The report titled “SNAP Restrictions Impact Analysis” stated that implementing the changes needed for compliance would cost c-stores $1 billion, supermarkets $305.1 million, small-format stores $11.8 million. and supercenters $215.1 million.
“We’re working diligently to prepare for this new reality, but a patchwork of state restrictions brings significant cost and operational hurdles – especially for smaller and rural stores – and can create confusion at checkout,” said Peter Matz, director of food, pharmacy and health policy at FMI. “Clear, consistent definitions and a more realistic timeline would help retailers successfully implement this new reality while keeping SNAP access smooth and dependable.”
According to the report, key cost drivers include technology upgrades and software and point-of-sale upgrades. Additionally, retailers will need to add more labor to comply with new stocking, replenishment and labeling requirements. More potential price increase related stuff: a new study by Yale’s School of Management indicates that 71 percent of CEOs polled said that tariffs were harmful to their businesses. And according to the New York Times, China’s drastic purchasing cutback on U.S. agricultural products (primarily soybeans) because of President Trump’s tariff policies, will require as much as a $50 billion bailout to American farmers. Who wins with that scenario looming?
Local Notes
After Arthur T. (Artie T) Demoulas was axed by the company’s board of directors last month, the former Market Basket CEO fired back, filing a 35-page lawsuit which challenged the board’s decision to terminate him (after placing him on administrative leave for more than three months). The Market Basket/Demoulas litigious history dates back more than 40 years, and although there were no punches exchanged during this round, it’s clear the two sides couldn’t be further apart, as noted by the recently failed meditation attempt. In his suit, Artie T is not seeking monetary damages, but hopes the court finds the board’s actions unlawful (Artie T’s three sisters are board members) and orders that he be reinstated as chief executive. A trial is scheduled for December in Wilmington, DE.
In Wawa news: former General Mills chief marketing officer Doug Martin has been named CMO and brand officer at the big c-store chain.
In a deal first announced in August, Wakefern confirmed earlier this month that it completed the acquisition of Morton Williams, the family-owned neighborhood grocer with 17 stores in Manhattan, the Bronx and Jersey City. The move will preserve Morton Williams’ rich legacy and deep-rooted community connections while leveraging the resources of the largest retailer-owned supermarket cooperative in the U.S. Wakefern announced the purchase agreement in August.
“When a brand is so embedded in the community, it’s essential that we preserve that legacy. Wakefern brings the scale and support to help independent operators compete and grow while retaining their local roots that made them successful. As a cooperative made up of family-owned businesses, we also know how to honor that community spirit while delivering the technology and support needed to help grocers succeed in today’s highly competitive marketplace. That is why we are so excited that Morton Williams, a storied Manhattan grocer, is joining Wakefern’s family of brands,” said Wakefern president Mike Stigers.
“There is an incredible, high performing team across Morton Williams stores and we look forward to working with them and learning from them as we bring the capabilities of our cooperative to the Morton Williams organization,” added Stigers. “We look forward to building on this great brand as we continue to bring high-quality, fresh foods and groceries to residents of one of the greatest cities in the world.”
Wakefern’s chairman, Sean McMenamin (McMenamin Family ShopRite), added: “Wakefern is looking to the future with a long-term plan for sustainable growth for the next generations of our membership. That means growing both within our cooperative – with our existing Wakefern members and banners – as well as making new acquisitions and expanding our wholesale distribution network. The acquisition of Morton Williams is part of our vision for the future, and we are thrilled to welcome Morton Williams to our Wakefern family.”
Kevin McDonnell, currently president of Wakefern’s wholly owned subsidiary PRRC, Inc., which operates stores under the Price Rite Marketplace banner, will serve as the Wakefern executive leading Morton Williams. McDonnell is a 40-year supermarket industry veteran with broad experience in store operations, merchandising, marketing and management as well as extensive experience in operating stores in the New York City area from his previous career stops at A&P and Fairway Market.
And speaking of Price Rite, the discount division of Wakefern earlier this month cut the ribbon on a new 34,000 square foot unit in Waterbury, CT that was an Ollie’s Bargain Outlet in a past life. Another Wakefern affiliated store opened this month, too – the new replacement 90,000 square foot Sunrise (Gladstein family) ShopRite on Bloomfield Avenue in West Caldwell, NJ debuted on October 21, replacing the retailer’s supermarket on Passaic Ave. which opened in 1967.
From the obituary desk, we’re sad to report the passing of Saul Zabar, patriarch of the first family of smoked fish (and cheese and bakery) in Manhattan, Zabar’s. For the past 70 years, you could often find Saul on the floor of the 5,000 square foot food emporium that is located on Broadway and West 79th Street. And what a store it remains – it’s the essential NYC experience – busy and noisy with an array of specialty products serviced by loyal and passionate associates. In his obit in the NYT, Saul is quoted as saying: “There’s a romance about what we do. We have a modern appearance, but we really do things the way they were done, 40, 50, 75, even 200 years ago.” You gotta visit to see how true that statement is. BTW, I’m already planning my shopping list for my next visit: one pound of Beemster aged gouda cheese, half a pound of hand-sliced double smoked nova salmon, a loaf of sliced rye bread (with caraway seeds, of course), and a half-dozen raisin rugelach.
Also leaving us over the past month was actress Diane Keaton, 79. Even though she won an Academy Award (for “Annie Hall” in 1977), I believe Keaton was underrated. She often took roles where she willingly played second-fiddle to a more powerful leading actor (Woody Allen in “Annie Hall,” Jack Nicholson in “Something’s Gotta Give”; Warren Beatty in “Reds” and Al Pacino in all three Godfather movies). I’d always admired Keaton for her nuanced and restrained presence but also for her comedic skills. Her timing was impeccable and her bond with her co-stars always seemed genuine
As I write this on October 13, it’s already been a bad week for Philadelphia sports fans. The Phillies were eliminated in the National League Division Series (on a botched ground ball to the pitcher), the Eagles were trounced by the New York Giants (an event that comes around about as often as Halley’s Comet), and the Flyers had yet to win a game. While Philly sports fans have long memories, that can occasionally be a good thing – something that holds true with the recent passing of Hall of Fame goalie Bernie Parent in Avalon NJ. After bouncing around in the Boston Bruins farm system for four years, Parent was signed by the Flyers for their inaugural season in 1967-1968. Those early teams morphed into the “Broad Street Bullies” and by the early 1970s became a real NHL powerhouse. In ’73-’74 and again the following year, the Flyers rose to become Stanley Cup champions, and Parent helped lead the way, winning 47 games in ’73-’74, posting 12 shutouts (a record that stood for 33 years), and winning the Vezina Cup for the league’s best goaltender. He also won the Conn Smythe Trophy as the most valuable player in the postseason. The following year, his shutout of the Buffalo Bills in deciding game 6 helped earn him a second Conn Smythe award. Parent was inducted into the Hockey Hall of Fame in 1984 (Parent’s death marks the third NHL Hall of Fame goalie to pass in the last six weeks – Ken Dryden and Ed Giacomin preceded him). After his career ended, Parent continued to work for the Flyers as a brand ambassador. In the day, a popular and oft-seen bumper sticker aptly described Parent’s netminding skills: “Only the Lord saves more than Bernie Parent.”
Jeff Metzger is publisher emeritus of Food World and Food Trade News and founder of Taking Stock LLC, a grocery industry advisory and consulting firm.
