Good morning.

America’s grocery wars have a new battlefield — it’s Kentucky.

Florida-based Publix is expanding into northern Kentucky, just outside Cincinnati — effectively stepping into the backyard of grocery giant Kroger, whose headquarters sits across the river.

Publix, which operates about 1,400 stores, plans to have a dozen locations in Kentucky by year-end. Kroger, the nation’s largest supermarket operator with roughly 2,700 stores, isn’t retreating. It has cut prices at nearby locations and opened a refurbished store in the area as a competitive response.

Let’s dive into today’s edition.

Walmart agreed to pay $100 million to settle claims by the Federal Trade Commission that it misled delivery drivers about earnings through its Spark platform.

What’s the issue? The FTC alleged that Walmart showed drivers inflated pay estimates by including pre-selected customer tips, base pay, and incentive opportunities that did not always materialize. Regulators also said the retailer falsely claimed that drivers would receive 100% of customer tips, while in some cases, tips were split among multiple drivers or not fully passed along.

Joint Attack: According to the complaint, Walmart also reduced base pay without warning when delivery orders were changed and failed to clearly disclose conditions tied to referral bonuses. Eleven states joined the FTC in the federal lawsuit.

Launched in 2018, Walmart’s Spark platform allows gig workers to sign up to fulfill delivery orders for the retailer. Spark drivers can also complete deliveries for other merchants, including Home Depot and 1-800-Flowers.

Target Corporation said it will only carry cereals made without certified synthetic colors by the end of May, citing customer research and sales data showing shoppers are moving away from artificial additives.

The retailer has worked with national brands and private-label partners to reformulate products ahead of larger manufacturers’ own dye-removal timelines. That means Target’s deadline will arrive before companies like General Mills and WK Kellogg Co complete their nationwide reformulations.

The move comes amid renewed scrutiny of food additives under the Trump administration’s “Make America Healthy Again” push, championed by Health and Human Services Secretary Robert F. Kennedy Jr. Major food companies, including Kraft Heinz, Conagra Brands, and Nestlé USA, have already pledged to phase out synthetic dyes in the coming years.

Lowe’s reported stronger-than-expected fiscal fourth-quarter results, posting revenue of $20.58 billion and adjusted earnings per share of $1.98, both ahead of Wall Street forecasts. Sales rose more than 10% year over year, and comparable sales increased 1.3%, exceeding analyst expectations.

Despite the solid quarter, CEO Marvin Ellison said the company continues to face a sluggish housing backdrop. Elevated mortgage rates, inflation, and economic uncertainty have created a “lock-in effect,” limiting home sales and the renovation activity that typically follows.

For the current fiscal year, Lowe’s expects total sales between $92 billion and $94 billion and adjusted earnings per share of $12.25 to $12.75.

Lululemon Athletica founder Chip Wilson intensified his campaign for board changes, calling for the replacement of more than three directors as part of an ongoing proxy fight.

Wilson, who owns about 4.27% of the company, had already nominated three independent director candidates in December and pushed for annual board elections. In a new letter to shareholders, he argued broader board turnover is needed, criticizing what he sees as weak strategic direction, mishandling of CEO succession, and insufficient creative and marketing expertise.

Lululemon pushed back, saying Wilson refused to make his nominees available for discussions unless the board agreed to a full slate of settlement terms. The company said it remains open to engaging with Wilson and other shareholders.

U.S. online retail sales are projected to reach $1.8 trillion by 2030, accounting for 29% of total retail sales, according to research firm Forrester. If realized, the figures would represent a more than 400% increase in annual online sales since 2015 and a doubling of e-commerce’s share of overall retail.

U.S. consumers spent an estimated $1.5 trillion online in 2025. By comparison, quarterly e-commerce sales were just $4.5 billion in late 1999. Growth has accelerated sharply over time, with online sales crossing $100 billion in a single quarter after 18 years, and then surpassing $300 billion just seven years later.

Much of the projected growth is expected to come from Generation Z, whose digital-first shopping habits are reshaping retail. Data shows 44% of Gen Z shoppers have purchased directly through social media platforms, with TikTok and Facebook accounting for a significant share of those transactions.

The U.S. Department of Agriculture forecasts overall food prices will increase 3.1% in 2026, with grocery prices rising 2.5% and restaurant prices climbing 3.7%. Grocery inflation is projected to remain slightly below its 20-year average, while dining-out costs continue to outpace it.

Among supermarket categories, beef and veal prices are expected to rise 5.5%, sugar and sweets 6.7%, and nonalcoholic beverages 5.2%. In contrast, egg prices are forecast to drop by 27.4% as production recovers from disruptions caused by avian influenza. Fresh vegetable prices are projected to increase 1.4%, while fresh fruit prices are expected to edge up 0.2%.

Overall, the USDA anticipates more moderate grocery inflation compared with the elevated levels seen in recent years.

President Donald Trump reaffirmed the suspension of the U.S. de minimis exemption in a new executive order, even after the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

The de minimis rule had previously allowed imports valued under $800 to enter the U.S. duty-free, a key mechanism supporting low-cost e-commerce shipments. Trump eliminated the exemption last year, citing concerns over drug trafficking and tariff avoidance.

The order also revises postal duty collection. Carriers must now collect and remit a duty equal to the newly announced 10% global tariff on goods shipped through the international postal system.

Democratic leaders are calling on President Donald Trump to issue tariff refunds to American families following a Supreme Court decision striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

California Governor Gavin Newsom and Illinois Governor JB Pritzker said families should receive roughly $1,700 per household, citing estimates that consumers paid about $231 billion in tariff costs over the past year. Pritzker sent a letter to the White House demanding refunds and issued a symbolic invoice totaling $8.6 billion for Illinois families.

The Supreme Court ruling determined that tariffs imposed under IEEPA exceeded presidential authority, but it did not address whether refunds must be issued. Trump criticized the decision and indicated the matter could face extended litigation.

DoorDash is pulling out of Qatar, Singapore, Japan, and Uzbekistan, citing competitive pressures and thin margins in the food delivery sector. The company operates in the affected markets through its Wolt and Deliveroo brands.

The decision follows a months-long review of country-specific conditions and will include operational adjustments, such as increased investment in engineering roles in the UK.

The move underscores a broader shift in the global food delivery industry, where companies are reassessing international expansion after years of aggressive growth. High operating costs and strong local competition have made profitability more difficult to achieve. In Singapore, rivals such as Grab Holdings and Delivery Hero’s Foodpanda dominate the market, while in Qatar, new entrants, including Meituan’s Keeta, have intensified competition.