Consumer Staples Distribution & Retail

Costco is expanding its same-day delivery network through new and broadened partnerships with DoorDash and Uber as it looks to grow e-commerce sales and compete with retailers like Walmart and Target. DoorDash announced that Costco members can now order groceries, dry goods, household essentials and other products through the DoorDash app for fast delivery from their local store, extending an existing relationship between the companies in Australia, New Zealand, Sweden, Iceland and Puerto Rico. Uber announced a major expansion of its Costco partnership to deliver products in 47 states, up from 17 states, with nearly 600 Costco locations now available on the Uber Eats app for on-demand and scheduled delivery. Costco is also available on Uber Eats in Canada, Mexico, Japan, Taiwan, France and Spain. The expansion of food and grocery delivery platforms into retail delivery underscores the rapid evolution of the parcel delivery market, where online sales now represent 16.5% of total retail sales and are growing at about 10% per year, according to the U.S. Census Bureau, while alternative carriers now make up about 8.5% of the parcel freight market, up from 2.6% of parcel volume in 2021, according to The Colography Group.

Target confirmed on Sept. 15 that it will hold its latest Target Circle Deal Days on Oct. 6-7, a two-day sale rewarding members of the free Target Circle loyalty program. The event offers 40% off thousands of items spanning apparel, kitchen gadgets, home decor, toys, beauty and tech, with early access beginning Oct. 5 for members of the paid Target Circle 360 tier. Highlights include 40% off select family clothing from brands like Cat & Jack and Goodfellow, up to 40% off Dyson vacuums and holiday decor, 30% off Threshold furniture, up to 65% off Vera Bradley, and 30% off select skincare, haircare and cosmetics. New members who join between Sept. 27 and Oct. 5 get 15% off their first purchase, those who sign up for an annual Circle 360 membership between Sept. 27 and Oct. 10 receive $50 in Target Circle Rewards, and shoppers approved for a Target Circle Card in that window can earn $75 in rewards. The push follows second-quarter results showing net sales up 5.3% year over year to $26.5 billion and comparable sales up 3.8%, though Bank of America analyst Christopher Nardone said he remains wary about the durability of the comp-sales trend.

Costco is expected to declare a record special dividend later this year, a possibility that could be signaled when the warehouse club operator reports its fiscal fourth-quarter results on Sept. 24. The company has already reported net sales rose 11.3% to $93.9 billion for the 16 weeks of the fiscal period that ended late last month, fueled largely by a 10.7% jump in comps at its stateside stores. Costco has delivered 22 straight years of dividend hikes, but its 0.7% yield has been overshadowed by special distributions declared every two or three years: $15 a share on Dec. 27, 2023, $10 on Dec. 1, 2020, $7 on May 8, 2017, $5 on Feb. 5, 2015, and $7 on Dec. 6, 2012. With three years now elapsed since the last payout, the article argues a substantial one-time dividend is likely before the end of this year, though the last two December payouts were declared in November and December rather than at the earnings report itself. Any language during the Sept. 24 earnings call suggesting the cash Costco has been stockpiling since 2023 is growing would be a dead giveaway.

Target reported second-quarter fiscal 2026 results that beat the Zacks Consensus Estimate on both the top and bottom lines, prompting management to raise its full-year sales and earnings outlook. Adjusted earnings came in at $4.11 per share, up from $2.05 a year earlier and above the consensus estimate of $2.30, with the quarter including tariff refund benefits of $1.65 per share; excluding those refunds, earnings per share rose 20% year over year to $2.46. Net sales reached $26,539 million, surpassing the consensus estimate of $26,129 million and rising 5.3% from $25,211 million, while comparable sales increased 3.8% against a decline of 1.9% in the year-ago quarter. Gross margin expanded 470 basis points to 33.7%, including a 370-basis-point benefit from $994 million of tariff refunds, and operating income soared 94.4% to $2,560 million. For fiscal 2026, Target now expects net sales growth of around 5%, an operating income margin rate of about 6%, and adjusted earnings per share of $9.90 to $10.90, a range that includes the second-quarter tariff refund benefits but excludes any potential future refunds.

Target is rated Zacks Rank #2 (Buy), with the consensus estimate for the current quarter rising 8.5% over the last 30 days to $2.05 per share, a year-over-year change of +15.2%. The consensus earnings estimate of $10.43 for the current fiscal year indicates a year-over-year change of +37.8% and has changed +5% over the last 30 days, while the next fiscal year's consensus estimate of $9.38 indicates a change of -10% and has changed +4.2% over the past month. For the current quarter, the consensus sales estimate of $26.32 billion indicates a year-over-year change of +4.2%, and for the current and next fiscal years, $109.81 billion and $113.24 billion estimates indicate +4.8% and +3.1% changes, respectively. Target reported revenues of $26.54 billion in the last reported quarter, a year-over-year change of +5.3%, with EPS of $2.46 versus $2.05 a year ago, beating the Zacks Consensus Estimate of $26.13 billion by a revenue surprise of +1.57% and an EPS surprise of +6.96%. The company beat consensus EPS estimates in each of the trailing four quarters and topped consensus revenue estimates two times over this period, and it is graded B on the Zacks Value Style Score, indicating it is trading at a discount to its peers.

Analysts raised their fair value estimate for Target from about US$133.84 to roughly US$162.76, an increase of around 22%, following a wave of higher price targets across Wall Street after Q2 results. Wells Fargo, UBS, Guggenheim, DA Davidson, and Gordon Haskett lifted their price targets into the US$175 to US$200 range, citing improved comps and a turnaround in store traffic and merchandising, while RBC Capital, Telsey Advisory, and Jefferies pointed to Target's merchandising reset and category strength in Food, Beauty, and Baby. Oppenheimer, Mizuho, and Wolfe Research emphasized management changes, a cultural shift toward faster execution, and store remodels as signs the recovery is gaining traction beyond a single quarter. On the cautious side, BofA, Barclays, and Deutsche Bank kept more conservative ratings even after raising targets, flagging apparel and home as execution risks, and Roth Capital and Piper Sandler cited decelerating trends in some categories, slower high-margin ad revenue, and lagging digital growth versus Amazon and Walmart. The revised fair value estimate assumes revenue growth of roughly 3.37%, up from about 2.97%, a profit margin of about 3.83% versus roughly 3.59%, a future P/E multiple of roughly 20.0x versus about 18.0x, and a discount rate of roughly 7.38% versus about 7.34%.

Krungsri Securities assesses that the government is likely to extend the measure increasing the credit limit on the state welfare card for another two months, in October through November. Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, disclosed that after the government is likely to approve the Thai Chai Thai Plus measure, which is expected to be submitted for Cabinet approval on September 22, low-income earners under the state welfare card program must also be assisted, by topping up funds for purchasing consumer goods through Thong Fah shops, maintaining the increased limit at 1,000 baht per person per month, up from the normal level of 300 baht per person per month, continuing the original measure that raised the limit to this level from June through September. This is seen as positive for TNP, which is a shop that directly participates in the program, as well as for KK MOTHER, with revenue from the program accounting for 8-10% of total revenue, and it makes the outlook for the fourth quarter of 2026 more positive. Initially, SSSG for the fourth quarter of 2026 is estimated at around -2% year-on-year, and 2026 profit is estimated at 204 million baht, down 4% year-on-year. There is still upside risk of around 10% from better-than-expected SSSG, with 2026 SSSG estimated at +3% year-on-year against the assumption set at -3% year-on-year, where every 1% increase in SSSG affects 2026 profit by around 1.5%. In the short term, third-quarter 2026 profit is expected to grow the strongest at 15% year-on-year and 1% quarter-on-quarter to 55 million baht, from an expected SSSG of +13% year-on-year after benefiting from the measure for a full quarter, including the opening of eight new branches during the fourth quarter of 2025 through the third quarter of 2026, leading revenue to be expected to rise 23% year-on-year and 5% quarter-on-quarter. Although gross margin is expected to weaken from product mix, with essential goods carrying low margin, the stock is attractive on valuation, trading at a 2026 forecast PER of 11.2 times, below the sector average of 14 times, and it has a strong financial position as net cash. Recommend Buy with a 2027 target price of 3.88 baht, based on a PER of 14 times, close to the sector average.

United Natural Foods reported fiscal fourth-quarter adjusted earnings per share of $0.69, beating analyst expectations, while revenue of $7.64 billion came in below consensus. The grocery wholesaler guided for fiscal 2027 net sales of $31.2 billion to $31.8 billion, a return to growth after full-year fiscal 2026 sales declined 2% to $31.2 billion. Full-year adjusted EBITDA rose 27% to $701 million and free cash flow hit a record $323 million, with net debt falling by $295 million and net leverage improving to 2.2 times. Fourth-quarter natural-products sales increased 6.6% even as conventional-products sales declined 8.6%, and management guided fiscal 2027 adjusted EPS to $3.00 to $3.50 versus $2.65 previously. The fiscal 2027 revenue outlook implies growth of only about 0.2% to 2.1% and falls below the $31.95 billion analyst estimate.

Mother Marketing Public Company Limited, or MOTHER, a retail and wholesale consumer goods operator under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, expects revenue in the fourth quarter of 2026 to grow steadily in line with its targets, driven by the year-end tourism high season. Managing Director Ekapong Chokchaiwittat said the Krabi Provincial Office of Tourism and Sports forecasts that more than 5.2 million tourists will visit in 2026, generating more than 100 billion baht in revenue, with at least 20 billion baht expected to circulate during the year-end high season in particular. This will significantly boost sales at each branch in tourism areas. Meanwhile, in late November, airlines from the Scandinavian countries are preparing to launch new direct routes to Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights per week. Ekapong said this will provide additional support to stimulate the local economy and help MOTHER's revenue expand in line with its operational plans.

High Tide Inc. reported record fiscal third-quarter revenue of C$198.8 million on September 14, up 33% year over year, while operating income rose 133% to C$8.7 million for the quarter ended July 31, 2026. Despite that profit growth, net cash provided by operating activities slipped to C$10.1 million from C$10.7 million a year earlier, as working capital absorbed C$1.8 million compared with a C$2.4 million release a year earlier, an approximately C$4.2 million unfavorable swing. Operating cash flow before changes in non-cash working capital rose 44% to C$11.9 million, and for the first nine months operating cash flow reached C$20.4 million versus C$19.6 million a year earlier. The company opened four Canadian stores and acquired four more during the quarter, and its German medical-cannabis subsidiary Remexian generated C$38.2 million in revenue, up from C$31.6 million sequentially, distributing 10.2 tonnes, a 35% sequential increase. High Tide also reported C$7.0 million in company-defined non-IFRS free cash flow, down from C$7.7 million a year earlier, while quarterly same-store sales at Canna Cabana were flat.

Costco Wholesale Corp. is widening its same-day delivery reach through DoorDash and Uber Eats as its membership growth slows. DoorDash is rolling out same-day delivery from Costco warehouses nationwide, just a day after Uber Eats expanded its own Costco service to 48 states. Costco had 82.9 million members as of June, yet membership growth was down 4% year-over-year, a concern because membership fees supply the company with high-margin recurring revenue and foster consumer loyalty. Costco's net sales for fiscal 2026 were $297.3 billion, up 10% from the prior year, but its stock is up only around 4% this year, compared with a gain of more than 10% for the S&P 500. The delivery partnerships could be especially crucial for younger consumers, a group Costco has struggled to attract and retain, and the next test is whether the expanded digital footprint can translate into faster membership growth.

Mother Marketing Public Company Limited, or MOTHER, which operates retail and wholesale consumer goods businesses under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga, and Surat Thani provinces, expects its fourth-quarter 2026 results to grow on the back of the year-end high season. Managing Director Ekapong Chokchaiwittat said the launch of new direct flight routes by Scandinavian airlines will provide an additional boost to the local economy. The Krabi Provincial Office of Tourism and Sports forecasts that more than 5.2 million tourists will visit Krabi in 2026, generating more than 100 billion baht in revenue, with the year-end high season alone expected to see at least 20 billion baht in circulation as part of that full-year figure. This is expected to significantly increase sales at each branch in tourist areas. Meanwhile, in late November, Finnair will launch a direct Helsinki-Krabi route and Scandinavian Airlines will launch a direct Copenhagen-Krabi route, operating two flights per week.

Performance Food Group reported second-quarter revenues of $18.03 billion, up 6.4% year on year but falling 0.5% short of analysts' expectations, with full-year revenue guidance meeting estimates and EPS in line. The stock is down 20.1% since reporting and trades at $91.06. Among the 137 consumer discretionary stocks tracked, group revenues beat consensus by 2.7% while next-quarter revenue guidance came in line, and share prices are down 8.1% on average since the latest results. Smith & Wesson posted the sector's best quarter with revenues of $112.6 million, up 32.3% year on year and 14.1% above expectations, while Matthews was the weakest, with revenues of $246 million, down 29.6% and 7% below estimates. Latham reported revenues of $197.5 million, up 14.4% and 4.8% above expectations, and H&R Block reported revenues of $1.14 billion, up 3% and 2.5% above expectations.

Costco is expected to report a year-over-year increase in earnings on higher revenues when it releases results for the quarter ended August 2026 on September 24. The Zacks Consensus Estimate calls for quarterly earnings of $6.48 per share, a year-over-year change of +10.4%, on revenues of $94.82 billion, up 10.1% from the year-ago quarter. The consensus EPS estimate has been revised 0.18% higher over the last 30 days, but the Most Accurate Estimate sits below the consensus, producing an Earnings ESP of -0.19% and a Zacks Rank of #3, a combination that makes an earnings beat difficult to predict conclusively. In the last reported quarter, Costco was expected to post earnings of $4.91 per share and actually produced $4.93, a surprise of +0.41%, and the company has beaten consensus EPS estimates four times over the last four quarters.

Mother Marketing Public Company Limited, or MOTHER, expects revenue in the fourth quarter of 2026 to continue growing in line with its target, driven by the year-end high-season tourism market and foreign visitors arriving in Krabi province. Ekapong Chokchaiwittan, Managing Director of MOTHER, disclosed that the Krabi Provincial Office of Tourism and Sports forecasts that in 2026 there will be more than 5.2 million tourists, generating more than 100 billion baht in revenue, with the year-end high season expected to see at least 20 billion baht in circulation, which will significantly boost sales at each of the company's branches in tourist areas. In addition, at the end of November, airlines from the Scandinavian countries are preparing to launch new direct routes into Krabi province, namely Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, operating two flights per week, reflecting Krabi Airport's readiness to handle international flights and providing further impetus to stimulate the local economy, supporting MOTHER's revenue growth in line with its operational plan.

Mother Marketing Public Company Limited, or MOTHER, a retailer and wholesaler of consumer goods under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, expects sales in the fourth quarter of 2026 to continue growing. Managing Director Ekapong Chokchaiwittat said the main driver is the year-end high tourism season, as foreign visitors arrive in Krabi. The Krabi Provincial Office of Tourism and Sports forecasts that 2026 will see more than 5.2 million tourists, generating more than 100 billion baht in revenue, with the year-end high season alone expected to see at least 20 billion baht in circulation, significantly lifting sales at each branch in tourist areas. Meanwhile, in late November, airlines from the Nordic countries are preparing to launch new direct routes into Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights a week, reflecting Krabi airport's readiness to handle international flights. Ekapong said the new direct routes will provide an added boost to the local economy and help MOTHER's revenue expand in line with its operating plan.

Ekapong Chokchaiwittan, Managing Director of Mother Marketing Public Company Limited, or MOTHER, a retail and wholesale consumer goods business operating under the Mother Supermarket and Mother Marche brands in Krabi, Phang Nga and Surat Thani provinces, said the business outlook for the fourth quarter of 2026 is expected to continue growing, driven by late-year high-season tourism as foreign visitors arrive in Krabi. The Krabi Provincial Office of Tourism and Sports forecasts that in 2026 more than 5.2 million tourists will visit, generating more than 100 billion baht in revenue, with the late-year high season alone expected to see at least 20 billion baht in spending, significantly lifting sales at each branch in tourist areas. Meanwhile, in late November, airlines from the Scandinavian countries are preparing to launch new direct routes into Krabi: Finnair on the Helsinki-Krabi route and Scandinavian Airlines on the Copenhagen-Krabi route, each operating two flights per week, reflecting Krabi airport's readiness to handle international flights. Ekapong said the late-year high season is an important opportunity that helps boost purchasing power from foreign tourists, and the launch of new direct routes by the Scandinavian airlines will be an added force stimulating the local economy and keeping it lively, supporting MOTHER's revenue growth in line with its operating plan.

CP Axtra Public Company Limited, the operator of the Makro–Lotus wholesale and retail business, has joined with the Department of Internal Trade under the Ministry of Commerce to buy and distribute in-season mangosteen through Makro and Lotus outlets nationwide in the form of basket mangosteen, targeting total distribution of more than 1 million kilograms over the season. The basket mangosteen is packed 3 kilograms per basket at 99 baht, and is now on sale at Makro and Lotus stores nationwide. The launch was attended by Mr. Jirawut Suwanna-at and Mr. Chanthaphat Panjamanon, Deputy Directors-General of the Department of Internal Trade, Ministry of Commerce, along with their delegation, together with Mr. Wiboon Suphakornpongkul, Vice Chairman of the Thai Chamber of Commerce and Chairman of the Executive Committee of the Coordination and Public Relations Center, or AFC Center, who visited the basket mangosteen and other Thai fruit display points, including longan, coconut, watermelon and pomelo, at Lotus Rama 4 branch and Makro Sathorn branch. They were welcomed by Ms. Ekkathida Seriratwipachai, Director of Fresh Food Management, and Ms. Chanida Phuensaen, Senior Manager for Corporate Affairs, Government Coordination and Stakeholder Relations Management at CP Axtra. In addition, from January to September 2026, CP Axtra purchased agricultural produce, including vegetables, fruit and aquatic animals, from farmer groups, community enterprises and cooperatives nationwide and sold them through the Makro–Lotus network, totaling 73,736,690 kilograms, generating more than 1,406 million baht in income for Thai farmers.

CP Axtra Public Company Limited, the operator of the wholesale and retail businesses Makro and Lotus's, has joined with the Department of Internal Trade under the Ministry of Commerce to purchase and distribute mangosteen output through Makro and Lotus's outlets nationwide under the "Mangosteen Basket" format, targeting distribution of more than 1 million kilograms of produce over the season. The Mangosteen Basket holds 3 kilograms per basket and is priced at 99 baht, now on sale at Makro and Lotus's stores nationwide. Mr. Jirawut Suwanna-at and Mr. Chanthaphat Panjamanon, Deputy Directors-General of the Department of Internal Trade, along with their delegation, together with Mr. Wiboon Suphakornpongkul, Vice Chairman of the Thai Chamber of Commerce and Chairman of the AFC Center Management Committee, visited the Mangosteen Basket and other Thai fruit sales points, including longan, coconut, watermelon, and pomelo, at the Lotus's Rama 4 branch and the Makro Sathorn branch. They were welcomed by Ms. Ekkathida Seriratwiphachai, Director of Fresh Food Merchandise Management, and Ms. Chanida Phuensaen, Senior Manager for Corporate Affairs, Government Coordination, and Stakeholder Relationship Management at CP Axtra. From January to September 2026, CP Axtra purchased agricultural produce, including vegetables, fruits, and aquatic animals, from farmer groups, community enterprises, and cooperatives nationwide and sold them through the Makro and Lotus's network, totaling 73,736,690 kilograms, generating more than 1.406 billion baht in income for Thai farmers.

Costco Wholesale expanded its Uber Eats delivery coverage to 48 U.S. states from 17, putting nearly 600 Costco locations on the platform. Shares of Costco rose about 1% on Wednesday following the announcement. The wider rollout gives members another way to order groceries, household products and other merchandise online, and could broaden the retailer's digital reach as it works to maintain engagement with its membership base. Costco had 82.90 million members as of June 20, down 4% from the same period a year earlier. Uber Eats is also offering eligible Costco members 50% off an annual Uber One subscription during the first year, followed by a 20% discount in subsequent years, and Costco products are available through Uber Eats in several international markets, including Canada, Mexico, Japan, Taiwan, France and Spain.

Costco Wholesale and Uber Technologies are sharply expanding their U.S. delivery partnership, making Costco available through Uber Eats in 47 states and nearly 600 warehouses, up from 17 states previously. Costco members can now order groceries, fresh produce, household essentials, bulk products and Costco-exclusive merchandise through Uber Eats for either scheduled or on-demand delivery, entering their membership information at checkout to access member pricing while Uber handles ordering, delivery scheduling and real-time tracking. The companies are also tying the expansion to their membership programs: eligible Costco members can receive 50% off an annual Uber One membership in the first year and 20% off in following years, participating Costco locations and Costco.com will temporarily offer $100 Uber or Uber Eats gift cards for $79.99, customers who buy a Costco membership through Uber Eats can receive 30% off their first qualifying Costco order, and Uber One members receive no Uber fees on eligible grocery and retail orders above $60. Costco already works with Uber Eats internationally in Canada, Mexico, Japan, Taiwan, France and Spain. Uber COO Andrew Macdonald said the nationwide partnership demonstrates the scale and opportunity Uber can bring to retailers looking to meet more of consumers' everyday shopping needs.

Analysts expect the retail and wholesale sector to benefit from the government's plan to consider extending the Thai Chai Thai Plus programme by another one to two months. Wilasinee Boonmasoongson, assistant managing director at Global Securities, or GBS, said the stocks expected to gain include Thanapiriya Public Company Limited, or TNP, K&K Superstore Southern Public Company Limited, or KK, and Mother Marketing Public Company Limited, or MOTHER. The research team holds a positive view on TNP, expecting second-half 2026 operating results to grow on from a positive second quarter of 2026, after same-store sales growth, or SSSG, turned back up by 4.9% from still-negative levels in April before starting to recover in May, supported further by the increase in the state welfare card spending limit from June to September. TNP plans to expand to 64 branches, and under its JUMP+ plan aims to open about 30 more branches by the end of 2028, or roughly 10 per year. The research team estimates TNP will post revenue of 3.396 billion baht in 2026, growing about 10% from a year earlier, and net profit of 229 million baht, up about 8% year on year. For the six months of 2026, TNP recorded sales revenue of 1.62397 billion baht, an increase of 158.58 million baht, or 10.82%, from the same period a year earlier, and net profit of 103.59 million baht.

Costco Wholesale Corp. has expanded its Uber Eats partnership to 47 states from 17, bringing delivery from nearly 600 warehouses onto the platform. Customers can order Costco's full assortment through Uber Eats, with members verifying their membership before purchasing. The partnership goes beyond delivery: some Costco members will receive discounts on Uber One, and shoppers will be able to buy Costco memberships directly through the Uber Eats app. Costco gains another way to reach customers who expect groceries and household products at their door, while Uber gains one of America's largest retailers as it pushes Eats beyond restaurant delivery. Competition is intensifying, with DoorDash, Instacart and Amazon already competing heavily for grocery orders and Walmart expanding its own delivery ambitions.

Walmart said its Marketplace business grew more than 50% in each of its first two quarters, driven by multi-year investments in assortment, pricing, delivery speed, fulfillment and product discovery rather than any single operational change. Manish Joneja, Walmart's senior vice president and global head of Marketplace and Fulfillment Services, told a Piper Sandler discussion that the company is using its 4,500 U.S. stores as fulfillment nodes, allowing third-party Marketplace inventory to be forward-deployed to store backrooms and enabling pickup or delivery in as little as 30 minutes in some areas. Joneja said 95% of the U.S. population lives within a three-hour delivery range of a Walmart store, while 60% is within a sub-30-minute range, and that Walmart's online pickup and delivery business grew 43% in the most recent quarter. Walmart Fulfillment Services, which accounted for 50% of Marketplace sales, delivers conversion rates more than 50% higher and costs 15% lower for participating sellers, and combining WFS with advertising has in some cases produced five times gross merchandise value growth. Walmart is also extending the Marketplace model to Canada, Mexico and Chile, opening walmart.com to Canadian and Mexican shoppers seeking U.S. assortment and letting sellers reach multiple markets through a single entry point.

Kroger is betting on private-label brands to lower prices and protect margins, a strategy Costco has long used with its Kirkland Signature label. On the chain's second-quarter earnings call, CEO Gregory Foran said Private Selection sales rose more than 14% during the quarter, driven by strong customer response to new products including more ready-to-heat and ready-to-eat meals, and that brand sales across the portfolio grew faster than national brands with penetration up approximately 50 basis points. Kroger also plans to expand SmartWay, its opening price point brand, with more items, broader coverage across the store, and improved visibility in store and online. Data from Numerator cited by Retail Dive shows Kroger's private-label sales in produce, meat, seafood, deli and prepared foods, and in-store bakery rose by about $420 million over the 12-month period ended July 31. The push comes as an August NielsenIQ study found 58% of consumers don't care whether a product is a national brand or private label, 68% view private-label products as a good alternative to national brands, and 69% believe they offer good value for money, while Circana data puts U.S. private-label sales at $330 billion, a 24% unit share and 23% dollar share of the total market.

Lotus's Go Fresh, under CP Axtra Public Company Limited, or CPAXT, is pressing ahead with expanding its neighborhood supermarkets into larger formats in locations suited to each community, aiming to broaden its product range across fresh food, vegetables, fruit, frozen foods, and household essentials, while linking in-store services with online channels. There are six stores serving as the prototypes for this new format: the Soi Suphaphong branch in Bangkok, the Soi Rewadee 38 branch in Nonthaburi, the Phra Pokklao Road branch in Chiang Mai, the Sri That branch in Udon Thani, the Phuket Fantasea branch in Phuket, and the Pracha Suk Sawang Road branch in Chonburi. The company says this model has delivered strong operating results and that the experience gained from these stores can be leveraged to expand into other areas. CPAXT will apply feedback and lessons from the flagship stores to store layout, product selection, and service, with branch development taking into account location, floor space, and consumer behavior in each community. The new-format stores are also connected to Lotus's Shop Online, allowing customers to shop in store or order fresh food and essentials from their local branch for home delivery. Lotus's Go Fresh will continue to expand larger stores in suitable locations as it pursues its goal of becoming the leader in Thailand's supermarket market.

Walmart and SCAN Health Plan announced a partnership on Wednesday to offer co-branded Medicare Advantage plans in two states, targeting a pool of more than two million Medicare enrollees. The plans, pending regulatory approval, may include pharmacy, vision, food, and over-the-counter benefits, with open enrollment for Medicare Advantage beginning Oct. 15. A central feature of the partnership is Walmart's Everyday Health Signals platform, an AI tool designed to provide personalized nutrition and wellness guidance based on members' shopping preferences and self-reported wellness goals. SCAN Group is a nonprofit whose health plan serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington, with about half a million members and patients across all of its affiliated entities. The Walmart deal follows a similar move by SCAN with Costco Wholesale, which covers two states for Medicare Advantage products and a third for a Medicare supplement plan, with a combined pool of around five million Medicare enrollees. The two companies did not disclose the financial terms of Wednesday's deal.

Don Quijote announced on the 16th that it will release a fleece priced at 999 yen before tax, rolling it out sequentially at Don Quijote group stores nationwide starting in early October. With inflation driving a growing preference for thrift, the company aims to attract shoppers by offering a low-priced product. It achieved the low price by reviewing costs related to production and logistics, and the company says it will "continue to build a system that allows us to keep offering this price." Sales will begin ahead of the nationwide rollout in Hokkaido and the Tohoku region from the 21st, expanding nationwide in early October. The fleece comes in six unisex sizes, with children's sizes also available, and a lineup of 17 colors including black and beige.

Don Quijote announced on the 16th that it will begin selling a fleece jacket priced at 999 yen before tax at Don Quijote group stores nationwide starting in early October. With prices rising and consumers increasingly looking to save, the company aims to attract shoppers by offering a low-priced product. It achieved the low price by reviewing production and logistics costs, and the company says it will "continue to build a system that allows us to keep offering this price." Sales will begin ahead of the nationwide rollout in Hokkaido and the Tohoku region on the 21st, expanding nationwide in early October. The fleece comes in six unisex sizes, with children's sizes also available, and is offered in 17 colors including black and beige.

Dollar General drew fresh attention after its better than expected Q2 2026 earnings, which analysts cited as a key driver behind a 2.5% share price move on August 27. The stock's 1 month share price return of 4.78% and 90 day gain of 13.56% suggest momentum has been building again, even though the year to date share price return is down 5.59% and the 5 year total shareholder return is down 36.66%. The most followed narrative values Dollar General at about $131.07 per share, only slightly above the recent $129.17 close, framing the current move as a modest gap rather than a big valuation disconnect. Remodeling efforts under Project Renovate and Project Elevate, along with expansion of higher-margin nonconsumables and continued development of private label brands, are improving store productivity and encouraging higher basket sizes, helping to drive gross margin expansion and profitable earnings growth. The bullish narrative could crack if rural focused expansion starts to dilute returns, or if labor and operating costs keep outpacing productivity gains.

United Natural Foods Inc. reported fourth quarter and full fiscal year results on September 8, swinging to a fourth quarter net income of $35 million from an $87 million net loss a year earlier. Fourth quarter adjusted EBITDA rose 48.3% to $172 million, adjusted EPS came in at $0.69 versus a $0.11 adjusted loss per share last year, and gross margin widened to 13.7% from 13.4%. For the full year, adjusted EBITDA grew 27% to $701 million, adjusted EPS climbed to $2.65 from $0.71, and net sales fell 2% to $31.2 billion. Fourth quarter net sales slipped 0.7% as optimization initiatives dragged roughly 500 basis points and the unwind of short-term project work added about 150 basis points of pressure, while capital spending rose to $117 million from $74 million and free cash flow eased to $80 million from $86 million. The company's FY27 guidance points to sales growth of about 1% and adjusted EBITDA growth of nearly 8% at the midpoint, with free cash flow below FY26 levels.

High Tide reported record third-quarter fiscal 2026 results, with revenue rising 33% year over year and 11% sequentially to CAD 198.8 million for the quarter ended July 31, 2026. Adjusted EBITDA increased 52% from a year earlier and 17% sequentially to CAD 16.2 million, an 8.2% margin that was the company's highest in 12 quarters, while operating income totaled CAD 8.7 million and reported net income reached a record CAD 12.7 million. Chief Executive Officer Raj Grover said the quarter was the strongest financial performance in company history, and Chief Financial Officer Mayank Mahajan noted consolidated gross margin held at 27%, with brick-and-mortar at 27% and medical cannabis distribution at 26%. High Tide generated CAD 7 million in free cash flow, its best in four quarters, and operated 232 Canna Cabana stores in Canada, on track to add 20 during calendar 2026 toward a long-term goal of 350 locations. Its German Remexian medical cannabis distribution business sold 10.2 metric tons, up 35% sequentially, generating CAD 38.2 million in revenue and CAD 4.4 million in adjusted EBITDA, and management said it is evaluating international opportunities including the United Kingdom while prioritizing disciplined deal-making in Canada and Germany.