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Walmart to open 500 stores in India | Rumours about takeover Woolworths

Tesco sales outperform market expectations despite drop

US: Ahold-Delhaize merger may help Peapod counter Amazon
A merger between Dutch supermarket Ahold and Belgian rival Delhaize will be a boon for U.S. online grocer Peapod, an Ahold unit which will gain valuable resources to fend off rival Amazon.com and upstart competitors, according to retail industry consultants, Reuters reports. Access to Delhaize's efficient and low-cost distribution centers in the east and its presence in the U.S. east coast is likely to give Peapod an upper hand over Amazon, Walmart.com and smaller rival Fresh Direct, all of whom are expanding in the fast-growing north and south eastern markets, Strategic Resource Group's Managing Director Burt Flickinger said. The merger will give Peapod an opportunity to leverage Delhaize's network in south eastern states like Virginia, Georgia and North Carolina, consultants said. "The merger should help Peapod maintain its lead in the market at least through 2016 even with Amazon Fresh making significant inroads in this space," Flickinger said.

CA: Sobeys to cut 1,300 jobs as it streamlines distribution operations
Sobeys Inc. is preparing to shave 1,300 jobs in the wake of its takeover of Safeway Canada as the country’s second-largest grocer looks to consolidate its distribution and office operations and cut costs, theglobeandmail.com reports. The retailer is closing three of its distribution centres and launching a new one as well as an expanded one in the next couple of years, Marc Poulin, chief executive officer of parent Empire Co. Ltd., told analysts on Thursday.

UK: Tesco sales drop 1.3% but outperform market expectations

Tesco has reported a 1.3% fall in sales in the three months to the end of May, as the retailer struggles to return to growth amid a supermarket price war, theguardian.com reports. However, the sales drop outperformed market expectations, as analysts had predicted a sales fall of up to 2.5%. The stronger than anticipated figure will be a boost to CEO Dave Lewis as he faces tough questions over the supermarket’s weak performance and its generous remuneration for top executives when it holds its annual meeting on Friday. He said: “We are fixing the fundamentals of shopping to win back customers and relying less on short-term couponing.” Both the volume of goods sold and the number of customers increased.

Tesco reportedly draws bids from Carlyle, KKR for South Korean unit
Tesco has received first-round offers from private-equity firms including Carlyle Group LP and KKR & Co. for its South Korean business, people familiar with the matter said, esmmagazine.com reports. Affinity Equity Partners Ltd., CVC Capital Partners Ltd. and MBK Partners Ltd. have also bid for the Homeplus supermarket unit, said the people, who asked not to be named because the information is private. The business could fetch more than $5bn, people with knowledge of the matter said earlier this month.

Walmart rolls out plan to open 500 stores in India
Walmart India is working on an ambitious plan to have 500 stores in the country the next 10-15 years, a top executive at the firm said, livemint.com reports. “We now have a full team in place and will be able to grow very fast,” said Krish Iyer, chief executive officer, Walmart India, adding that the company is in India for the long term and will start growing aggressively in two to three years from now.

US: Meijer unveils its first stores in Wisconsin
Meijer moved into its sixth state, opening its first two Wisconsin supercenters to local customers today, Co-Chairman Hank Meijer announced, prnewswire.com reports. The 192,000-square-foot stores in Grafton and Kenosha have created nearly 600 jobs, and are the first in the state to carry the retailer's unique offerings that include fresh, high-quality produce and groceries, general merchandise and full-service pharmacies.

AU: Woolworths shares up 5% on takeover rumours
Shares in Australia's biggest supermarket chain Woolworths have risen as much as 5% in Sydney on media reports of a possible takeover, bbc.com reports. The Australian newspaper reported fresh rumours that US private equity giant KKR had a bid that could be "almost ready" for consideration. It would be one of the biggest deals in Australia's corporate history, the newspaper said. The news comes amid turbulent times for the supermarket chain.

CA: Loblaw workers split over offer

Unionized workers at just over half the Loblaw-owned stores in Ontario have voted to accept a tentative agreement that another group in the same union has rejected, thestar.com reports. The latest developments mean that the locations most likely to see a strike — if one is called — are the 61 stores located in and around the Greater Toronto Area, plus some in Ottawa, Kingston, Peterborough and London. Stores in other parts of the province would operate as usual.

UK: Sainsbury's cuts price match Aldi and Lidl
Sainsbury’s has cut the price of one and two pints of milk, matching those of the discounters Aldi and Lidl, in a further sign of an intensifying supermarket price war, theguardian.com reports.

CA: Co-op Atlantic to lay off 400 employees

Co-op Atlantic is laying off 400 employees and closing four of its food stores in the region as it moves ahead with a restructuring plan that includes getting out of the food and retail gas businesses, canadianbusiness.com reports.

US: Kroger announces split to boost stock price
With its stock price trading near all-time highs, the Kroger Co. is introducing three new ways to keep the rally rolling: A 13.5% dividend increase, a $500m stock buyback and a two-for-one split of Kroger shares, wcpo.com reports. The split drew “Oohs” and applause from the roughly 250 attending the company’s annual meeting at Music Hall Thursday. “The stock split will increase the accessibility of our shares and liquidity in the trading of our shares,” said Rodney McMullen, Kroger’s chairman and CEO. “We are especially excited that the stock split will make Kroger’s common shares more accessible to our associates.”

Continente top retailer for reputation in Portugal

Portuguese Continente has been placed first in the Marktest Reputation Index 2015 in the food retail category, esmmagazine.com reports. A panel of 2,000 people evaluated brands according to five main criteria: trust, image, admiration, familiarity and word of mouth. Continente led in all the criteria analysed and achieved an overall average of 76.03 points (out of 100), with Pingo Doce placed second with 74.89, reports daily Expresso. Both received top points for image and familiarity. Other retailers that made the list were Lidl (70.37), Jumbo (69.34), Minipreço (62.31) and Intermarché (61.48).

Belgian Colruyt FY results: revenues rise 3.1%

Colruyt said that it continued to grow its market share in Belgium, reaching 31.0%, an increase of 49 basis points on 2014, driven by the Colruyt and Okay banners, while the market share at SPAR was stable. igd.com reports. The chain said that it continued to grow its market share in Belgium, reaching 31.0%. Colruyt said that its margins remained under pressure in France ‘due to negative market volume growth, price deflation and strong price competition’, with the retailer’s chief financial officer, Ter Beke, describing it as facing ‘continuing low consumer confidence’. By segment, Colruyt said that:
  • Revenue at Colruyt stores in Belgium and Luxembourg rose 2.3%
  • Okay and Bio-Planet saw revenues increase by ‘more than 12%’
  • Dreamland and Dreambaby enjoyed revenues rise by 2.8%
  • At its wholesale and foodservice arm, revenues grew by 3.5%
DIA and Eroski enter into cooperation agreement for Spain
DIA and Eroski have announced that they have signed a cooperation agreement that will cover the former’s operations in Spain and ‘increase both retailers’ bargaining power vis-à-vis the major Spanish and international brand suppliers’, igd.com reports. The retailers made clear that fresh produce suppliers and small-scale local producers are excluded from the agreement, while the two will ‘both continue to pursue totally independent sales policies’.

UK: Spar launches first non-profit store with YMCA
All profits made in-store will be reinvested into YMCA North Staffordshire to provide opportunities and support to disadvantaged young people, thegrocer.co.uk reports.

India: BigBasket to sell freshly cut vegetables with recipes
Online grocer BigBasket.com will now sell ready-to-cook meals, hawking pre-packed ingredients and freshly cut vegetables with recipes, in its latest offering to attract newer, younger consumers in metros looking for faster and more convenient forms of food consumption, livemint.com reports.

US: Florida Grocers Association launched by Florida Retail Federation
The Florida Retail Federation (FRF) announced on Tuesday that its Grocery Council will be renamed the Florida Grocers Association to help focus on the more than 2,300 grocery stores across the Sunshine State, a $45bn annual industry, sunshinestatenews.com reports. The Florida Grocers Association will be a division of the FRF.

Interesting links on retail:


The Royal Ahold and Delhaize merger: How to survive in the US grocery retail market
Click here to read het article.

Ahold & Delhaize: What The Analysts Said
Click here to read het article.

AU: Aldi eating Woolworths’ profits dents Aussie grocer bond demand

Click here to read het article.

US: FreshDirect CEO: Technology powers trust

Click here to read het article.