Retail Foodservice Roundup: Walmart Depots, RaceTrac-Potbelly and more

Walmart expands ultra-fast delivery Depots 

Loyal readers of this weekly roundup may recall that last week we told you Walmart is starting to deliver Subway orders directly through its app and website. It’s a move that holds wide-ranging implications for restaurant delivery given the retailer’s mammoth scale.  

Now comes word that Walmart is looking to take over former drug stores and other shuttered locations under 20,000 square feet to create an ultra-fast delivery hub network of “Walmart Depots.” 

The depots, according to documents filed with the town of Poughkeepsie, New York, “are a new way to deliver faster to more people.” 

The public would be prohibited from entering the locations, where a scaled inventory of popular grocery items, household goods and pharmacy products would be stocked. The Depots would be located near existing Walmart stores, the retailer said.  

Technology would help determine if delivery orders would be fulfilled by a Walmart Depot or a traditional retail location. Pilot Depots have opened in Dallas and the retailer’s hometown of Bentonville, Arkansas, as well as other locations, with plans for national expansion.  

Walmart did not specify whether the Depots would stock prepared foods or restaurant offerings, but the possibility certainly exists, especially as the retail Goliath enters restaurant delivery with its Subway deal.  

RaceTrac to open its first in-store Potbelly

It was a shocking announcement last September: Atlanta-based c-store chain RaceTrac said it intended to buy Chicago-based fast-casual sandwich chain Potbelly for $566 million.  

Would that mean a Potbelly in every one of the nearly 600 RaceTrac locations?  

No, the retailer said earlier this year, telling CSP Daily News that it intended to grow the sandwich chain as a traditional restaurant concept — with some c-store overlap where warranted.  

But the convenience retailer is now plotting its first Potbelly-RaceTrac location at a large-format store in Atlanta that’s currently a Barnes & Noble bookstore, according to reporting by C-Store Dive.  

Might this pave the way for future dual-branded locations?  

Publix bolsters retail foodservice selection

Florida grocer Publix opened a new store in Bradenton with an expanded retail foodservice offering, the first of its kind in the Central West Coast county, the grocer said.  

The nearly 56,000-square-foot store “offers more ways for customers to enjoy Publix,” the company noted, with a Pours counter serving beer, wine, coffee, team smoothies and acai bowls. There’s also prepared foods like customizable burritos, nachos and bowls; made-to-order whole pizzas or self-serve pizza by the slice; made-to-order pasta and appetizers; and specialty popcorn in a variety of flavors.  

“It’s all about bringing added convenience, variety and fresh options together in one place,” a Publix spokeswoman said.  

Casey’s gets a big pizza boost

Casey’s last week announced its fourth-quarter earnings, and pizza gave the c-store chain a significant lift.  

Inside same-store sales at the Ankeny, Iowa-based retailer rose 5.5% over last year, or 7.4% on a two-year stack basis.  

Drilling down, prepared foods and dispensed beverage same-store sales increased 6.6% during the quarter. What’s more, Casey’s said its margins in that business segment rose to 59.5%, up from 57.8% during the same quarter a year ago.  

Whole pizzas, appetizers and sides were called out as clear winners.  

A recent Bank of America analysis concluded that, due to geographic overlap, Casey’s is likely stealing share from Midwest competitor Pizza Hut.