Friday Morning News: Target Grocery is a hit.

Aldi Inc. is being sued by more than 200 current and former store managers in 32 states over unpaid overtime wages, in a lawsuit alleging the discount grocer violated the federal Fair Labor Standards Act, the Wall Street Journal has more.

More at Supermarket News.

Crain's is reporting another big Bronx bakery will be shut down: Old London Foods, a maker of Melba toast and other crispy snacks, will shutter its plant in Morris Park, resulting in the loss of 228 jobs

Union workers at Albertsons, Fred Meyer and Safeway stores here have reached a tentative agreement with the chains on a four-year contract.

A recommendation to permit the sale of wine at grocery, a $1 per pack cigarette tax increase, and a penny per ounce tax on sugared beverages linked to obesity are part of the Executive Budget proposed by New York Governor David Paterson Tuesday.

New Yorkers Against Unfair Taxes, a coalition formed to oppose taxes on food and beverage products, has expressed its “disappointment” regarding New York Gov. David Paterson’s proposal to place a tax on sugar-sweetened beverages of 12 cents per 12-ounce can in the 2010-2011 Executive Budget. According to the group, which includes many of the Empire State’s grocery store operators, as well as convenience stores and industry associations, the tax would be 10 times higher on a 12-pack of nonalcoholic beverages than the state tax on a 12-pack of alcoholic beverages like beer. Paterson proposed the nondiet soft drink tax as part of an effort to close the state’s $7.4 billion budget deficit.

New York City unemployment spikes to 10.6%.  

The Star-Ledger writes another article how Walmart's new supermarket in North Bergen, New Jersey will affect grocery shopping habits:

"When it comes to her weekly grocery shopping, Priscilla Restrepo follows a two-part routine: Pathmark for fresh produce, Target next door for packaged food...But yesterday's two-stop grocery run just might have been her last.  Today, just one mile down the road on Tonnelle Avenue, retail giant Wal-Mart is opening its first grocery supercenter in North Jersey - a sprawling 24-hour store, roughly the size of four football fields, which will offer everything from lawn chairs and game consoles to fresh meat and warm baked goods."

They also report that the early reviews of the store are great.

Meanwhile, Supermarket News reports Target's "P-Fresh" prototype store which carries more grocery items, has lifted shopper frequency “as never before,”

In remodeled stores with the new, expanded P-fresh food departments, sales and traffic are up an average of 6% 12 months after the remodelings, he said, which translates into 1,000 extra trips per store per week, or gains of $4.5 million at minimum per year.

Due to these statistics, The Wall Street Journal reports Target is slamming the brakes on store expansion and will pour $1 billion this year into remodeling its existing shops to accelerate a push into groceries.

More: Forbes.com

John Standley, the former chief executive officer at Pathmark Stores, will take over as CEO of Rite Aid Corp. here effective June 24, the drug retailer said Thursday.

More: Business Week.

The Downtown Express covers our rally at Amish Market last week.

Tops is on track to officially get Penn Traffic.

What does the Mass. Senate change mean for the food industry?