The Friday Checkout: Walmart opens up new opportunities for discounts on fast food

The Friday Checkout: Walmart opens up new opportunities for discounts on fast food

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The Friday Checkout is a weekly column that gives you deeper insights into the news, summarizes announcements you may have missed, and alerts you to upcoming news.

Walmart has long had a reputation as a reliable provider of inexpensive groceries, but the retail giant’s latest move to boost customer loyalty revolves around a very different method people use to satisfy their hunger: fast food.

The company’s tie-up with Burger King, announced Thursday, encourages customers who participate in its Walmart+ membership program to stuff themselves with Whoppers and fries – hardly the kind of diet that strikes a healthy balance between mealtime and well-being. But Walmart notes that the tie-up with the fast-food chain simply reflects the company’s goal of providing “undeniable value and convenience” to its customers.

While Walmart’s decision to add discounts on Whoppers to its growing list of Walmart+ perks might be good business, it’s a curious move for the nation’s largest grocer. Walmart has increased its emphasis on private-label staples and is focusing on fruits and vegetables and other fresh foods as it revamps its supercenters, and grocery sales play a key role in the retailer’s results. Additionally, Walmart’s strong position in the grocery industry is one reason Kroger wants to merge with Albertsons.

Walmart positions itself as an essential source for the goods people need most – from food and clothing to medicine and basic financial services. But as its pact with Burger King underscores, the company’s primary purpose for existence is to make money.

In case you missed it

Walmart’s new beverage robot

A ghost kitchen at a Walmart store in Rockford, Illinois, now houses a humanoid beverage robot, according to an announcement Tuesday.

Equipped with AI technology, the robot began working at Walmart’s One Kitchen store on August 16, serving customers numerous coffee and boba drinks. ADAM is expected to serve between 100 and 200 cups of coffee and tea per day.

The robotic beverage system, developed by Richech Robotics and known as ADAM, is scheduled to be introduced in 240 One Kitchen locations across the United States.

A drinking robot from Richech Robotics.

Courtesy of Richech Robotics

Grocers want to prevent discounts in Oregon

Measure 118, or the Oregon rebate, is making grocers nervous — so nervous that numerous chains are paying thousands to prevent its passage. As early as last week, filings with the Oregon Secretary of State indicate that Kroger, Albertsons-Safeway and Costco have written checks for $500,000 to the Grocery Retail PAC, which is funding a campaign against the measure, Willamette Week reported.

The Oregon rebate would impose a 3% gross sales tax on any business that makes more than $25 million a year in Oregon sales, according to the local news outlet. Proponents estimate the tax would raise enough money to give every Oregonian $1,600 a year.

Giant Food or TSA security?

According to local television station WUSA9, some Giant Food stores in Washington, DC are implementing new measures to combat shrinkage and theft.

The updated policy, which changes rules the supermarket chain implemented three months ago, allows customers to bring bags measuring 14 x 14 x 6 inches, which were previously banned. However, customers must now agree to have their bags tagged upon entry and checked upon entry and exit, the news outlet reported. In addition, starting Thursday, people under the age of 18 will not be allowed to enter certain locations after 6 p.m. without an adult accompanying them.

Number of the week: $7.9 billion

That’s how much total e-grocery sales were in July, an increase of more than 9% compared to July 2023, according to data from Brick Meets Click and Mercatus. About 42% of those sales were for self-pickup last month, while delivery accounted for just over 40% and home delivery 19%.

What’s next?

Dollar General reports profits

The discounter has scheduled its conference call on second-quarter results for next Thursday morning.

Kroger, Albertsons and the Federal Trade Commission face each other in court

A hearing on Monday in the U.S. District Court for the District of Oregon in Portland will begin the legal battle between the two merging food giants and the federal agency.

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