Despite launching a $500m price slashing strategy in May, new figures suggest Woolworths' grocery prices were still flat in the June quarter at the same time as Coles got cheaper for shoppers, smh.com.au reports. A Macquarie Securities analysis reveals the cost of a selection of everyday groceries at Woolworths stores has fallen 1.9% since early March, mostly thanks to a seasonal decline in the price of fruit and vegetables. However, Coles did even better, posting a 3.1% cost decline for the same period based on the same goods. In the same period, Coles owner Wesfarmers' online prices fell 3%, Macquarie's index of Coles and Woolworths basket of everyday requirements shows. Woolworths pricing has been consistent across online and in-store purchases since March. Seasonal drops in the cost of fruit and vegetables underpinned grocery price falls for both major supermarket chains. However, the Macquarie report estimates that if fruit and vegetable pricing was taken out of the equation, Woolworths' pricing would be "broadly flat" across the quarter.AU: Metcash's biggest IGA chain sees light at end of tunnel
Australia's largest independent grocery chain, Ritchies Stores, is forecasting its first profit growth in four years – an early sign that wholesaler Metcash's five-year survival plan for the struggling independent sector is starting to deliver results, smh.com.au reports. Ritchies Stores' net profit fell 20% to $2.5m in 2014 according to the most recent accounts lodged with ASIC, taking the drop in earnings since 2011, when profits 
peaked at $9.2m, to 73%. Annual sales growth has stalled at $848m and sales per store have been declining since the company bought nine Franklins supermarkets from Metcash, which owns 26% of the company and is its largest supplier. Ritchies' finances reflect the pressure on the independent grocery sector amid increasing competition between Woolworths, Coles and discounter Aldi; persistent grocery price deflation; and changing shopping habits including stronger demand for fresh food. IGA retailers' market share has fallen from 19% to 14% since 2010 and earnings from Metcash's food and grocery business, which supplies about 1200 IGA retailers, have fallen 43% since 2012, reflecting operating deleverage as sales and margins come under pressure.Tesco Malaysia denies Aeon buyout offer
Tesco Malaysia today denied reports that Japan’s Aeon Co Ltd is interested in buying its hypermarket operations here from Britain’s Tesco plc, reportedly valued at about £900m (RM5.33bn), therakyatpost.com reports. Tesco Malaysia chief executive officer Datuk Georg Fischer said these reports are nothing but rumours. He said Aeon’s Malaysian arm, Aeon Co (M) Bhd wrote in an email: “Aeon Japan headquarters has confirmed that the statement is false and there has been no discussion with Tesco.”Malaysia: Tesco to operate 24 hours as Hari Raya nears
Seven of Tesco's hypermarket stores will be operating round the clock as the Hari Raya celebration nears, english.astroawani.com reports. Tesco is the first hypermarket to extend a 24-hour service and introduce special prices for several of its products. It was also the first time for the hypermarket to embark on such an initiative ahead of any festive season.
UK: Convenience stores invest £177m over last three months, ACS reports
New figures released by the Association of Convenience Stores have shown that convenience retailers have invested £177m in their businesses in the period between February and May 2015, retailtimes.co.uk reports. Overall, more than one in four stores (28%) surveyed said that they were planning to invest in their store, an increase on both 2014 (24%) and 2013 (21%). Regionally, more stores are planning to make investments in the South West of England than anywhere else in the UK (35% making some investment), while the lowest levels were found in the North West with 22% making investments. The ACS Investment Tracker showed that the most popular form of investment in stores was refrigeration, suggesting that many stores are adapting their product ranges to include more fresh food and ‘food to go’ such as sandwiches and fruit and veg – the latter of which has been shown to be the fastest growing category in convenience stores for the last two years running.Greece: Delhaize preparing for consequences
Belgian retailer Delhaize, which operates under the Alpha Beta fascia in Greece, opened 27 stores in the market in 2014 and a further 17 this year, igd.com reports. Commenting on what lies ahead, Nicolas Van Hoecke, Director of Communications said, ‘We have taken a number of measures to prepare for the possible consequences of a possible Grexit… We do not plan to leave’.Ahold: Flexibility with private label set to grow
In an interview with NRC Handelsblad / De Standaard, Ahold’s chief executive, Dick Boer, has said that he feels that the retailer has been too cautious with the expansion of its private label ranges into other Ahold-owned formulas, igd.com writes. Boer said that there was an opportunity to add Albert Heijn’s products in other stores, noting that AH Basic is now sold in the Czech Republic despite shoppers potentially not understanding or knowing what the ‘AH’ stood for. In future, if the merger between Ahold and Delhaize goes through, Boer said there was the opportunity to see each retailer’s private labels added to the other’s shelves.Albert Heijn evolves its fresh offer in The Netherlands
Continuing its focus on its fresh ranges, which it sees as a hero category and a differentiator with rivals, Albert Heijn has introduced 50 new products to its fresh offer, adapting the way they are displayed in-store at the same time, igd.com reports. The retailer said that products would be ranged into seven segments and would come in new transparent packaging that emphasises its freshness.US: Costco reports June sales results
Costco Wholesale today reported net sales of $11bn for the month of June, the five weeks ended July 5, 2015, an increase of 1% from $10.9bn during the similar period last year, marketwatch.com reports. Both years' five-week periods included 34 selling days in the U.S. and Canada, reflecting the observance of Independence and Canada Days. For the forty-four weeks ended July 5, 2015, the Company reported net sales of $96.32bn, an increase of 4% from $92.88bn during the similar period last year.Natural Grocers to open first metro Phoenix store
Metro Phoenix is getting another grocery store, azcentral.com reports. Natural Grocers, which sells natural and organic foods, beverages, vitamins and supplements, is opening its first metro Phoenix store next month. The store, at Scottsdale Town Center, northwest corner of Thunderbird and Scottsdale roads, Phoenix, is one of 18 the Colorado-based grocer is expected to open in fiscal year 2015. The grand opening is slated for Aug. 11.India: Online grocery startup Meragrocer is set to raise $10mln
Online grocery startup Meragrocer is set to raise $10m in its second round of funding, co-founder and COO Saurabh Chadha said, indiatimes.com reports. The company, which launched its e-grocery business in 2014, is planning to utilise the funds to strengthen its presence and expand operations in Delhi, Mumbai, Hyderabad and Chandigarh. "We are in talks with a mix of old and new investors and will be finalising the deal in the next 30 to 45 days," said Chadha, refusing to give out any names. Meragrocer also plans to expand to other cities. US: After buying Safeway, Albertsons files for IPO
Cerberus Capital is listing U.S. grocery store operator Albertsons Cos Inc a year after the private equity firm acquired Safeway and combined the two chains, Reuters reports. Albertsons, the second-largest U.S. grocery chain after Kroger Co, operates more than 2,200 supermarkets, including 1,247 Safeway stores. The company's other supermarket brands include Vons, Jewel-Osco, Shaw's, Tom Thumb and United Supermarkets. The IPO comes at a time when big grocery chains are getting squeezed by mass retailers such as Walmart Stores Inc as well as upscale chains such as Whole Foods Market. Walmart generated more than half its revenue from grocery sales last year. "Traditional supermarket chains are in a very challenging position and they need to enhance their differentiation, improve their competitiveness. They have a tough game to win," said Bob Goldin, an executive vice president at foodservice consultancy Technomic. Albertsons' revenue rose by more than a third to $27.2bn for the 53 weeks ended Feb 28, but the company posted a net loss of $1.2bn compared with a profit of $1.7bn a year earlier.Sprouts hires CMO, EVP of store operations
Sprouts Farmers Market has named Shawn Gensch CMO and Dan Sanders EVP of store operations, supermarketnews.com reports. Gensch, who will report to Sprouts president and CEO Doug Sanders (no relation to Dan Sanders), most recently served as co-founder and CEO at a start-up consumer loyalty company. Prior to that he served as Target’s SVP of marketing, responsible for brand marketing, media, loyalty and public relations. He also served as president of Target Bank and led the company’s financial product development. Dan Sanders has 25 years of experience in supermarket operations and served as division president for Supervalu, leading store operations across various divisions including Albertsons and Acme Markets.Interesting links about retail:
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