Metro Inc. said the price of its average food basket increased 4% in the last quarter, thestar.com reports. Higher prices for fresh produce and meat have translated into stronger-than-expected. Prices for vegetables and fruit also rose, 6.4% and 2.1% respectively. Metro's profit soared 15.2% to $111.6mn in its second quarter, ending March 14. Same-store sales at locations open for at least a year were up 4.5% – and 6% overall – an increase from each of the four prior quarters as online promotions, an improved fresh food offering and a reorganization at its Food Basics discount banner gained momentum, the company said. Canada: Metro expresses interest in target stores
Metro Inc. said it was interested in some of the stores being sold by Target Corp., becoming the second Canadian retailer to look at the stores the U.S. retailer leaves behind after its exit from Canada.
India: Walmart and govt form task force for agri commodities
The Andhra Pradesh government and Walmart International have formed a task force to collaborate on sourcing various agriculture commodities by the company in the state, business-standard.com reports. It aims at sourcing agri products from local farmers while helping in increasing productivity and capacity building in the farm sector. Walmart is currently sourcing cashew nuts, red chillies, coconuts and sweet lime from AP. The chief minister suggested the company work with agriculture and horticulture departments on identifying additional agriculture commodities, vegetables and fruits for sourcing from the state and make AP as a global hub for sourcing certain products.India: Walmart plans to expand
American retail giant Walmart said that it has proposed to set up four or five stores in the city and a few more elsewhere in the State, thehindu.com reports.
US: ‘Pure food’ trend a boon to supermarkets, analyst says
Survey: Pure food trend a boon to supermarkets
Scott Mushkin, an analyst at Wolfe Research in New York, published those findings in a report Wednesday, supermarketnews.com writes. The survey of more than 2,000 US women indicated that “minimally processed,” “locally grown” and “natural and organic” characteristics are all more important factors influencing food purchase decisions than they were when asked the same question in 2013. More than 45% of those polled said they intended to spend slightly or significantly more on fruits and vegetables in the coming two years, an increase of 7% from the 2013 poll. In addition to more fresh items and “pure food,” shoppers are demanding variety, convenience and good prices, the survey showed.Tesco boss: We can compete with Aldi and Lidl
Tesco chief executive Dave Lewis has told ITV News the supermarket can still compete with lower-cost rivals such as Aldi and Lidl - and says he aims to rebuild the business "inch by inch" after last year's huge losses, itv.com reports. He admitted, however, that Tesco had "not been as competitive as we should be" in recent years, and conceded the company was spending "significant" amounts on private jets - which have since been sold - when he arrived. Please, click here to watch the interview. UK: What the experts say on Tesco's loss
The Guardian writes about what City analysts are saying after one-off writedowns helped to drive Britain’s largest supermarket into the UK’s biggest-ever retail loss. Please, click here to read the article.
US: Ahold seeks to expand in Center City
After experimenting with an urban grocery concept called Everything Fresh at a small store in Philadelphia, Ahold USA is reportedly seeking to eventually open eight stores throughout Center City, bizjournals.com reports. They would cater to consumers looking for fresh, organic produce, prepared meals and “kickass prices” as its website says. Everything Fresh is a brand that Ahold USA, which owns grocery chain Giant Foods, continues to develop.US: Taxi Studio redesigns Budgens own brand packaging
Budgens is hoping to turn around consumer perception and position itself as a premium grocery retailer with a redesign of its entire own brand packaging led by Taxi Studio, thedrum.com reports. The first iteration of this is currently being implemented across 180 Budgens fresh produce line in the first revamped store in Crouch End, London.India: ’24X7Fresh’ online delivery 30 Indian cities
24x7Fresh, an app based online grocery startup, is looking for a 30-city launch across India, thetechportal.in reports. The company will have a reach of more than 30 cities within 12 months, including Bengaluru, Mumbai and Pune. It is also planning to hire more than 1500 executives in departments like technology, marketing, logistics and customer support. It will offer a wide line up of products, including grocery. Zimbabwe to benefit from Pick n Pay
South African retail giant Pick n Pay will invest over R5bn ($412,4mn) in the next two years as part of its African expansion programme, including Zimbabwe, aimed at further strengthening the balance sheet and financial performance of the group, source.co.zw reports. Swedish Axfood trials e-commerce as it reports strong Q1
Swedish retailer Axfood has announced that it is to trial e-commerce, starting from today, retailanalysis.igd.com reports. Axfood revealed this development following its Q1 results, in which the retailer enjoyed a 6.9% increase in consolidated sales to SEK 9,566m (€1.03bn), an increase of 6.9% versus last year. Retail sales for group-owned stores increased by 5.8%, while like-for-like sales increased by 4.8%. Operating profit also jumped 33.7% to SEK 329m (€35.3m).Nakumatt ‘relishing’ new competitors in Kenya
Nakumatt’s regional director for strategy and operations, Thiagarajan Ramamurthy, said that the retailer had ‘nothing to worry about’ from the impending arrival of global retailers Carrefour, through its UAE-based franchisee Majid Al Futtaim, and Walmart, retailanalysis.igd.com reports. Ramamurthy said that Nakumatt had a market leading position in Kenya and was aiming to grow its presence to 70 stores that meet the demands of 1.5mn shoppers and generate a gross revenue of US$1bn, up from US$700mn in 2014.Russia: Magnit increases spending on land
Magnit, Russia’s largest retailer, raised its capital spending budget for this year by 23% as it buys more land to develop stores and capitalize on the country’s economic crisis, retailanalysis.igd.com reports. The retailer is “trying to take advantage of the Russian economic slowdown to buy land plots and premises at reduced prices now to lay foundations for future growth,” said Natalya Kolupaeva, an analyst at ZAO Raiffeisenbank in Moscow.Carrefour launches new store banner in Argentina
Carrefour has unveiled a new store banner in Argentina, called '5 Minutos', with which the retailer will seek to grow its presence in the convenience and small-format supermarket sector, esmmagazine.com reports. The new format is similar in size to its Carrefour Express stores, and will be located predominantly in lower-tier cities.Seflana expanding Metro banner in Namibia
Botswana-based Seflana Group, which acquired the Namibia-based Metro operations in 2014, has announced that the strategy and investment that it has placed behind the brand since acquisition has helped it to win in the local market, retailanalysis.igd.com reports. Seflana said that following its purchase of Metro it had invested in the operations and integrated the operations into its wider membership of Unitrade Management Services (UMS), which has helped it improve buying, marketing and branding at the retailer, thus driving efficiencies and increasing profitability.