Changes in the food industry landscape and customer expectations will cause the market share of traditional retailers to drop from 71% of retail food sales to 62% by 2025, according to a new report from Technomic, supermarketnews.com writes. Technomic does predict some growth for traditional retailers over the next 10 years. The report states sales at traditional supermarkets will increase 3% annually, going from $363bn in 2014 to $502bn in 2025. However, other types of retailers will grow much faster. Sales at fresh format stores will climb 12% per year and total $60bn in 2025, while sales at online and other retailers such as home meal delivery, farmers’ markets and CSAs will climb 13.5% a year to reach $60bn. The report describes a changing definition of “healthy” to include attributes like “natural,” “fresh” and “artisanal,” attitudes that will not be limited to affluent consumers. Technomic predicts sales of organic products will total $170bn in 2025, up from $35.1bn in 2013.Lidl changes plan to enter US
German discount supermarket chain Lidl has delayed a plan to enter the U.S. market until 2018 after the surprise departure of two top executives last month, Reuters reports. Klaus Gehrig, CEO of the Schwarz Group which owns Lidl, said that preparations to enter the United States were proceeding apace but the first stores were only planned for 2018. His comments were confirmed by a Lidl spokeswoman on Monday. Lidl had been expected to open 100 stores in the United States as early as next year, mainly in East Coast markets like its German arch-rival Aldi. Lidl is also planning to expand to Serbia and Lithuania. Lidl declined to comment on the reason for the delay, but German media and analysts have speculated it could be linked to the departure last month of the group's long-serving chairman.
Germany: Mebane approves DC for Lidl
The Mebane City Council joined the Alamance County Board of Commissioners in approving its $1.8m share of $5.4m in incentives for a proposed grocery distribution center in the N.C. Commerce Park, thetimesnews.com reports. MGP Retail Consulting LLC said Lidl is the largest grocery chain in Europe and one of the largest retailers in the world. It is rolling out stores in the United States for the first time, and this distribution center would serve them. The company plans to finish the building in 2017.
Germany: Strong growth for Rewe - Aldi and Lidl recede
The German discounters Aldi and Lidl have lost part of their share in the German retail market in the first quarter of this year, as revealed by a market research analysis carried out by GfK. The winners are the big supermarket chains. Aldi Nord's turnover during the first three months of 2015 was 3.6% lower than in the same period of 2014. Aldi Süd lost 2.6% compared to the first three months of last year. For Lidl, sales dropped by 1.5%. For their part, large supermarket chains managed to increase their sales during the same period. According to GfK's analysis, Edeka' sales were 1.3% higher, while Kaufland registered a 4.3% growth and Rewe saw sales increase by 6.3%.US: GIANT/MARTIN'S named Retailer of the Year 2015
GIANT Food Stores and MARTIN'S Food Markets have been named 2015 Chain Retailer of the Year by Grocery Headquarters, a national monthly business publication with a circulation of more than 33,000, prnewswire.com reports. The recognition was given for the company's deep commitment to community, its dedicated associates, its emphasis on buying local, and its focus on nutrition.Israel: Rami Levi negotiating to buy Mega
The giant Rami Levi discount supermarket chain is negotiating to buy the financially troubled Mega stores, but it is doubtful that the talks will be fruitful, Globes reported. Rami Levi has became known for low prices. A merger or buy-out also would be closely examined by the anti-trust authority, jewishpress.com writes. US farm workers to Publix: join Fair Food Program
The opening of a Florida-based Publix supermarket in South Asheville brought with it fresh produce, sensible prices and protesting farm workers, mountainx.com reports. The group of farm workers wants Publix to join its Fair Food Program, a campaign which encourages retail food companies to use their purchasing power to require higher labor standards for farm workers who harvest the produce they buy.US: Haggen on schedule for 100 stores in 100 days
Haggen is on schedule to complete 100 openings in 100 days, Bill Shaner, CEO of the company's Pacific Southwest stores said, supermarketnews.com reports. The company has already reopened 42 former Albertsons and Safeway stores in Southern California. Each remodel costs an average of $500,000, he pointed out, for a total of approximately $5m for all 100 stores.India: Future Retail rises on merger with Sunil Mittal’s Indian Uni
Indian grocery chain Future Retail Ltd. extended its five-day rising streak after announcing a merger with Sunil Mittal’s Bharti Retail Pvt. to reduce costs and get cheaper loans, Bloomberg reports. Two companies will be formed as a result of the merger, Future said in a statement yesterday. Future Retail will hold the combined store operations, comprising of 570 stores across India. Future Enterprises Ltd. will own the infrastructure and investment assets of both companies. The two new entities will be run by a committee, Future Group Vice Chairman Kishore Biyani said.
US: Dash's Delivers is catching on in New York
Dash's Delivers is catching on in Western New York, wkbw.com reports. In just a few weeks, more than 1,000 people have signed up for the online shopping service from Dash's Markets.
India: Grocery retailer 24x7Fresh to raise $20m
24x7Fresh, an online grocery store which promises delivery within an hour of ordering products, plans to raise about $20m from investors, including SAIF Partners, thehindubusinessline.com reports. The company also plans to hire about 5,000 employees over the next two years, including 3,500 this fiscal. "Food eCommerce not profitable in Belgium"
A Solvay Brussels School study at 6 different distributors shows that not a single distributor manages to make money online in Belgium with food sales, regardless of the business model, retaildetail.eu reports. It is a combination of not enough online volume, as only 1 % of food is currently sold online (compared to 6.5 % for all trade), and costs that are too high, particularly staff costs.Shoprite to double investments in Nigeria
Following the reduction in diplomatic tension between South Africa and Nigeria, South African companies are now in moves to double their investments in Nigeria, nigerianbulletin reports. Shoprite, amongst many others, has announced an expansion program that would more than double its stakes in the Nigerian economy.Grocery shopping cheaper in UK
Research by mySupermarket’s Groceries Tracker showed that a basket of 35 staple products across all major grocers cost a total of £86.69 in May, down from £93.87 12 months ago, cityam.com reports. Prices fell one%, just over £1 on the month, down from £87.70 in April, the independent shopping and price comparison website said. Broccoli saw the steepest drop in price, falling 29%
EBRD considers €21m loan for Bosnian retailer BingoThe European Bank for Reconstruction and Development (EBRD) is considering providing up to €21m to support retailer Bingo’s further expansion in Bosnia and Herzegovina, esmmagazine.com reports.
US: Food City stocks up on local strawberries
Select Food City locations are once again receiving daily deliveries of local Scott’s Farms strawberries, supermarketnews.com reports. The Unicoi, Tenn.-based farm supplies strawberries to 16 stores in Tennessee and six stores in Virginia.US: Unified Grocers 'bullish' on data mining
Unified Grocers is "bullish" about mining sales data from its members to help them drive the top line, Sue Klug, EVP and CMO said, supermarketnews.com reports. Klug said the Los Angeles-based member-owned cooperative has begun collecting scan data and focusing on analytics for more than 800 of its member stores, "and we’ll use that information to help members drive top-line sales and also use the data internally to help make better decisions based on consumer demand rather than just warehouse movement."