Aldi US tries high-end food and discounts, too -
Aldi became one of the world’s biggest food retailers using a simple formula of no-frills stores offering a small assortment of products at rock-bottom prices, Bloomberg writes. After decades of expansion in Europe, it followed the same strategy in the US, where it gets about $8bn in annual sales and is growing from 15% to 20% a year, estimates Jim Hertel, managing partner at food-retail consultant Willard Bishop. Now the low-end discounter is working to also make itself more attractive to a different consumer: the type that shops at Trader Joe’s. Both supermarket chains are controlled by different factions of Germany’s billionaire Albrecht clan, but there’s more than just a family rivalry at play. Aldi U.S. CEO Jason Hart has seen American shoppers become more concerned about the content and quality of the foods they eat. So his chain recently added organic quinoa and coconut oil, chia seeds, and grass-fed beef. It’s also testing cage-free eggs and sriracha sauce to pull Americans from not only traditional supermarkets, but also specialty chains. Aldi’s own SimplyNature all-natural and organic line has become its fastest-growing brand. (Please, click here to read the whole article.)
Philippines: Lucio Co's Puregold acquires BudgetLane
L
ucio Co-owned supermarket chain Puregold Price Club Incorporated reported on Friday, August 7, that it has acquired 8-store supermarket chain BudgetLane for an undisclosed amount. In a disclosure to the stock 
exchange, Puregold said it made its second acquisition for this year through its wholly owned subsidiary Goldtiempo Company Incorporated, rappler.com reports. Puregold did not disclose acquisition cost but noted that it accounts for less than 10% of the company’s total book value.
UK: Hundreds of farmers blockade supermarket chain Morrison
The biggest mass protest yet in the campaign by farmers across the West took place last night with hundreds targeting the Morrisons distribution depot in Somerset, westerndailypress.co.uk reports. The farmers and their supporters gathered on the outskirts of Bridgwater for what they pledged would be "the most spectacular" protest so far – just a week after a dozen farmers from South Gloucestershire sparked the nationwide protests. Hundreds of farmers and their families, who are staring financial disaster in the face blockaded the massive supermarket warehouse. The protest involving tractors as well as children saw families from Cornwall to Dorset converge on the depot off the M5 at Bridgwater.
Retail sales fell in June in Europe
Aldi became one of the world’s biggest food retailers using a simple formula of no-frills stores offering a small assortment of products at rock-bottom prices, Bloomberg writes. After decades of expansion in Europe, it followed the same strategy in the US, where it gets about $8bn in annual sales and is growing from 15% to 20% a year, estimates Jim Hertel, managing partner at food-retail consultant Willard Bishop. Now the low-end discounter is working to also make itself more attractive to a different consumer: the type that shops at Trader Joe’s. Both supermarket chains are controlled by different factions of Germany’s billionaire Albrecht clan, but there’s more than just a family rivalry at play. Aldi U.S. CEO Jason Hart has seen American shoppers become more concerned about the content and quality of the foods they eat. So his chain recently added organic quinoa and coconut oil, chia seeds, and grass-fed beef. It’s also testing cage-free eggs and sriracha sauce to pull Americans from not only traditional supermarkets, but also specialty chains. Aldi’s own SimplyNature all-natural and organic line has become its fastest-growing brand. (Please, click here to read the whole article.)Philippines: Lucio Co's Puregold acquires BudgetLane
L
ucio Co-owned supermarket chain Puregold Price Club Incorporated reported on Friday, August 7, that it has acquired 8-store supermarket chain BudgetLane for an undisclosed amount. In a disclosure to the stock exchange, Puregold said it made its second acquisition for this year through its wholly owned subsidiary Goldtiempo Company Incorporated, rappler.com reports. Puregold did not disclose acquisition cost but noted that it accounts for less than 10% of the company’s total book value.UK: Hundreds of farmers blockade supermarket chain Morrison
The biggest mass protest yet in the campaign by farmers across the West took place last night with hundreds targeting the Morrisons distribution depot in Somerset, westerndailypress.co.uk reports. The farmers and their supporters gathered on the outskirts of Bridgwater for what they pledged would be "the most spectacular" protest so far – just a week after a dozen farmers from South Gloucestershire sparked the nationwide protests. Hundreds of farmers and their families, who are staring financial disaster in the face blockaded the massive supermarket warehouse. The protest involving tractors as well as children saw families from Cornwall to Dorset converge on the depot off the M5 at Bridgwater.Retail sales fell in June in Europe
According to data released by Eurostat, in June retail sales in the 19 member countries of the eurozone decreased 0.6% while for the 28 members of the EU they decreased 0.5%, in comparison with May, reports bloomberght.com. A decline of 0.2% was expected in retail sales in the eurozone on a monthly basis. Annually an increase in retails sales in Europe has been seen. In comparison with last June a 1.2% increase was seen in the eurozone and a 2% increase was seen in the EU. On a monthly basis the greatest decrease was reported in Germany, 2.3%; followed by Slovenia, 1.6% and Poland by 1.4%. The countries with the highest increase in retail sales were Romania, 1.7%, Austria 1.3% and 1.1% in Denmark. On an annual basis the highest increases in retail sales were seen in Romania, 7.9%, followed by Lithuania, 7.1% and Latvia, 6.8%. The biggest decrease was realised in Luxembourg, 9.9%. Russian agency starts search at retailers for contraband goods
Russia's Federal Service for Veterinary and Phytosanitary Surveillance will handle the detection of sanctioned products in the warehouses of retailers as domestic producers continue to report the presence of contraband on the market, fruitnews.info writes. US: Sprouts announces leadership shakeup, Q2 results
Sprouts Farmers Markets on Thursday said price investments and higher expenses brought down margins during the fiscal second quarter, while comparable store sales growth was lower than initially expected. In a separate statement, the Phoenix-based chain announced a leadership succession plan whereby Doug Sanders, its president and CEO, ascends to a role of executive chairman, supermarketnews.com reports. Amin Mereda, CFO, will take on the role of CEO. For the quarter, which ended June 28, Sprouts said overall sales climbed by 21% to $902.2m, driven by strong performance from new stores and a 5.1% increase in comparable store sales. When Sprouts reported first quarter earnings in May, it said it expected comps of 5.5% to 6.5%. Gross profit for the quarter increased 18% to $263.6m, resulting in a gross profit margin of 29.2% of sales, a decrease of 90 basis points compared to the same period in 2014. Belgium: Conad, Colruyt and Coop Schweiz join Alidis
These three retailers join longstanding Alidis members Edeka, Eroski and Les Mousquetaires (Intermarché), 
igd.com reports. It now has members with a combined turnover of around €140bn and operations in eight European countries. Francesco Pugliese,CEO of Conad, said the move would allow the new members to enhance their private label offer, guarantee lower prices for 
international brands, and sustain growth prospects in an increasingly competitive European market.Majid Al Futtaim announces Carrefour sales up 7% in H1
UAE-based Majid Al Futtaim (MAF), which holds the exclusive rights to the Carrefour brand in 38 countries, has seen sales at its Carrefour stores rise by 7% to US$3.0bn in the first half of its financial year, igd.com reports. MAF said that while sales rose 7%, its EBITDA increased by only 3% ‘impacted by one-ti
me costs associated with new market entries and additional store openings in existing markets’. The company said that it had opened 15 new Carrefour stores in the first half, taking its total to 143 across 13 countries. During the half, MAF has committed to opening new stores in Egypt, the Lebanon and the UAE, while it has entered Armenia.Spanish Eroski to promote Cantabrian produce
Spanish retailer Eroski has launched a new campaign under which it will promote foods from the Cantabrian region of Spain, esmmagazine.com reports.The initiative was developed by two Eroski supermarkets and eight hypermarkets in the region, and will run until 12 August. As a group, Eroski sold more than €100m worth of Cantabrian produce in the last three years. "Eroski promotes a food industry based on diversity for total freedom of choice for consumers,” a company spokesperson said. Eroski operates 34 stores in Cantabria. (source: esmmagazine.com)US: A&P and unions in tough negotiations
The union locals representing employees at the stores owned by the Montvale-based Great Atlantic & Pacific Tea Co. Inc. are engaged in the most crucial negotiations they have conducted with that company, northjersey.com reports. But this time, rather than negotiating gains in wages and benefits, the unions will bargain over how much of their contract protections they are willing to give up. (Click here to read more at northjersey.com) Metro Group acquires Classic Fine Foods in Asia
Metro Group, based in Germany, acquires leading Asian food service distributor, Classic Fine Foods, igd.com reports. Classic Fine Foods, headquartered in Singapore, is a leading premium food service distribution (FSD) player. The deal, worth US$290m, will provide Metro Group's Cash & Carry business with access to the attractive premium FSD markets in high growth Asian mega cities as well as the Middle East, increasing its wholesale market presence from 26 to 36 countries.US: Aldi to open four new stores in Philadelphia
Aldi, a low-price grocery store, plans to open in four former Bottom Dollar Food locations and hire 350 people as it ramps up its expansion throughout the region, bizjournals.com reports. The stores will open Aug. 20 and be part of a roll out of 24 new stores throughout the Philadelphia area by the end of the year.UK: Bestway improves online ordering functionality
Major UK cash & carry wholesaler Bestway has re-launched its transactional web portal to provide a more useable and responsive experience for its retailer customers purchasing online, igd.com reports. Commenting on this latest evolution of the service, marketing manager Salih Sheikh said "It's all about putting the customer first and matching their expectations ... we have invested in an 'intelligent search programme' that simplifies the whole trading process."
Interesting links on retail:
Metro Group's 9M 2014/2015 results suggest growth in 2016
Can a food distribution renaissance save Canada’s processing industry?
Please, click here to read the article. Major UK cash & carry wholesaler Bestway has re-launched its transactional web portal to provide a more useable and responsive experience for its retailer customers purchasing online, igd.com reports. Commenting on this latest evolution of the service, marketing manager Salih Sheikh said "It's all about putting the customer first and matching their expectations ... we have invested in an 'intelligent search programme' that simplifies the whole trading process."Interesting links on retail:
Metro Group's 9M 2014/2015 results suggest growth in 2016Please, click here to read the article.
Can a food distribution renaissance save Canada’s processing industry?UK: Is the worst finally over for Tesco, Sainsbury and Morrison supermarkets