The 7-Eleven business model is built on virtual "slavery" and if workers were paid correctly many stores would collapse, a whistleblower claims."The business is very proud of itself and the achievements and the money it's made and the success it's had. But the reality is it's built on something not much different from slavery," the unnamed insider told the ABC's Four Corners program last night. The whistleblower said that the convenience store franchisers were aware of the systemic underpayment of staff, many of whom are international students, but did virtually nothing to stop the practice. Please, click here to read more at 9news.com.au. US: Amazon is testing farmers market produce delivery
Amazon is currently testing delivery of farm-fresh greens, wild seafood, ripe melons, and a whole lot of other produce to customers' doorsteps. Best off all, the food will arrive within 36 hours of harvest and there is no need to schlep to the farmers market. Called Farmers Market Direct, the program is currently being tested in Southern California and is in partnership with farmers market delivery company Fresh Nation. Tony Lee, the founder of Fresh Nation, explains to the Los Angeles Times why he started the company: "Farmers markets are only open for a few hours a week, there wasn't enough time for people who want fresh local food to get it." In the trial, customers are able to order either fresh fruit or vegetable baskets, or a mix of both. (eater.com)Retailer Auchan sees delay to French sales recovery
French retailer Auchan said on Monday it no longer expected a recovery in sales this year in France, where revenue fell 2.9% year-on-year in the six months through June. Auchan, which competes with European leader Carrefour, ranks fifth in France, where it is engaged in a price war with other retailers to lure cash-strapped shoppers. In March, Auchan predicted its sales would bounce back in 2015 in its home market, which accounts for around 40% of revenue. (Reuters)Kenyan: Uchumi's full-year earnings to fall 25%
Uchumi Supermarkets' earnings for the year ending in June will fall at least 25% compared with the previous year due to "challenges on the working capital", it said on Monday. The company fired CEO Jonathan Ciano and CFO Chadwick Omondi Okumu in June after the chain fell behind on supplier payments. It ordered a forensic audit to see how cash from a rights issue was spent. "The challenges that led to an adverse performance for the year 2015 were mainly attributed to challenges on the working capital," the company said in a statement on Monday, without giving further details. It said recent changes, including to its top management, would lay a "solid and sustainable foundation" for growth. (Reuters)China: Lianhua Supermarket announces 2015 interim results
In the first half of 2015, the turnover of the Group’s supermarket segment decreased by approximately 9.7% year over year to RMB4,444,427 thousand, which accounted for approximately 31.57% of the Group’s turnover. Same store sales decreased by 3.78%. Gross profit decreased by approximately 4.7% year over year to RMB661,810 thousand and gross profit margin increased by 0.79 percentage point to 14.89%. Same store sales decreased by 3.78%. Consolidated income margin of the supermarket segment was 23.09%, representing an increase of 0.24 percentage point year over year. During the period under review, the turnover of the Group’s convenience store segment decreased by approximately 5.3% year over year to RMB934,021 thousand, which accounted for approximately 6.63% of the Group’s turnover. (todayir.com)US: Brookshire’s Food Stores promotes products that are made within its distribution area
Brookshire’s Food Stores have launched a new initiative that supports local businesses by purchasing products from within Texas, Louisiana and Arkansas that are locally grown, made and distributed. The local products are easily recognizable by different shelf tags, displays and signs throughout the store. “By purchasing products from within our own communities and the three states where we do business, we are providing products from people we know and trust and supporting local economies. Also, products bought closest to home are the most sustainable,” said President and CEO Rick Rayford. “We strive to provide top quality products for our customers, and by seeking out local products we can achieve this goal. We will continue to build our local products categories in the future.” (magnoliareporter.com)AU: Opportunity for small business as Aldi plans to open 80 stores in a year
An internal Aldi letter has revealed its plans to open as many as 80 stores within 12 months creating opportunities for small businesses. As Aldi continues its bid to grab a bigger share of Australia’s grocery shoppers, the retailer’s suppliers have been notified of the ambitious expansion plan, reports The Australian. While Aldi had already revealed plans to open 40 stores in South Australia and Western Australia in 2016, the latest target would involve opening just as many new stores in the eastern states. In a letter from Aldi buying director Jordan Lack, which has been obtained by The Australian, the chain’s suppliers were told to prepare for a 20% increase in demand for their products as the new stores open. “This is not only unprecedented growth, but one which provides access to virgin catchments and therefore presents a significant opportunity,” Lack said. “This presents great opportunities for us as a retailer, you as a supplier and a growing number of customers who now will have access to our great value range of products.” However, Aldi reportedly views opening 80 new supermarkets as a “highly aspirational” target and will more realistically open between 55-70 stores in 2016, including between 25-30 outlets in Victoria, New South Wales and Queensland and between 30-40 in SA and WA. (smartcompany.com.au)US: Walmart cuts some workers' hours after pay raise boosts costs
Walmart Stores Inc., in the midst of spending $1bn to raise employees' wages and give them extra training, has been cutting the number of hours some of them work in a bid to keep costs in check. The reduction in hours is taking place only in locations where managers have overscheduled workers, staffing the store for more time than they've been allotted, said Kory Lundberg, a spokesman for Bentonville, Arkansas-based Walmart. (dallasnews.com)
Food City begins rebranding Chattanooga Bi-Lo stores
Phase one of Food City's takeover of 29 Bi-Lo supermarkets has started in the Chattanooga area as the Abingdon, Va.-based grocer adds employees, cuts prices and looks to renovate stores. Food City announced plans to buy the 29 Bi-Lo stores in late July. (timesfreepress.com)
BJ's names new president, COO
BJ’s Wholesale Club said Monday Christopher J. Baldwin has been named president and COO, effective Sept. 8. He will be responsible for business operations, including merchandising, logistics, membership, marketing and club operations at the Westborough, Mass., company. (supermarketnews.com)AU: ''Underpayment of workers is key to 7-Eleven business model"
The 7-Eleven business model is built on virtual "slavery" and if workers were paid correctly many stores would collapse, a whistleblower claims."The business is very proud of itself and the achievements and the money it's made and the success it's had. But the reality is it's built on something not much different from slavery," the unnamed insider told the ABC's Four Corners program last night. The whistleblower said that the convenience store franchisers were aware of the systemic underpayment of staff, many of whom are international students, but did virtually nothing to stop the practice. Please, click here to read more at 9news.com.au. Italian online food market grows 27%
The online food market in Italy, consisting of the grocery and food & wine segments, has grown by 27% this year compared to 2014 and is worth over €460m (3% of the entire e-commerce sector). The figures come from the 2015 report of the Netcomm eCommerce B2C Observatory of the Milan Polytechnic. Due to the late launch of online grocery shopping services in Italy compared to the rest of Europe, the grocery segment currently only accounts for 1.2% of the entire Italian e-commerce market. According to Alessandro Perego, scientific director of the Digital Innovation Observatories of the Milan Polytechnic, food is one of the most dynamic sectors in the Italian B2C eCommerce market. Growth has been registered both in the grocery (supermarket purchases) and food & wine segments, with 2015 turnover reaching €200m and €260m, respectively. (esmmagazine.com)India: CCI approves $113.1m merger between Future and Bharti
The Competition Commission of India (CCI) has approved the INR7.5bn ($113.1m) merger of retail store and retail infrastructure businesses of Future Group and Bharti Retail. The companies have reached an agreement to this effect in May this year to create two separate companies for front-end retail and infrastructure activities. (retail-business-review.com)Interesting links on retail:
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Happy Fresh pilots next hour grocery delivery in Southeast Asia
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