Metro AG, Germany’s largest retailer, is forming an alliance with Alibaba Group Holding to develop e-commerce on the Chinese online retailer’s website. Metro will sell private-label products to Chinese consumers through Alibaba’s site, the companies said Tuesday in a statement. The retailers will also explore ways to cooperate in sourcing and using data. “Alibaba Group and Metro Group will work together to help more European consumer brands establish fast-track solutions for expanding into the Chinese market,” Alibaba Chief Executive Officer Daniel Zhang said in the statement. (esmmagazine.com)
AU: Double-digit growth for Aldi vegetables
Aldi has posted double-digit growth in sales value across most major vegetable commodities. Aldi continues to capture more of the fresh vegetable market, according to new market data released by Nielsen. Reports from the Nielsen Homescan service show that the German retailer has enjoyed above-trend growth in value for a wide range of fresh vegetables, including 48% growth for fresh salad, 43% for sweet potato and 37% for celery. “While overall sales value is higher for most vegetables than the same time last year, we’ve seen Aldi go above and beyond the increases shown by commodities overall,” said Ausveg spokesperson Kurt Hermann in a statement. “For fresh salads, for example, Aldi posted growth of over 40% in both value and volume sales. Coles also showed expansion in both categories, while Woolworths actually lost ground. “Aldi have also managed to go against the overall trend for some commodities – while carrots, pumpkin and lettuce have all seen marginal drops in sales value this year, Aldi has increased their sales value for each of them,” Mr Hermann said. “They’ve also increased their sales volume for cucumber, capsicum and broccoli, despite this indicator actually dropping overall for these commodities. “This is a clear indicator that Aldi are increasing their market share against the retailers for several key vegetable commodities.” Nielsen Homescan data is funded by Horticulture Innovation Australia using the National Vegetable Levy and funds from the Australian government. Please, click here to read more at queenslandcountrylife.com.au.Russia: X5's nominates a new CEO
X5 Retail group has nominated a new CEO ’s Igor Shekhterman, while Stephan DuCharme will return to the Company’s Supervisory Board as its Chairman. Under Stephan Ducharme's management, X5 has successfully introduced a new Pyaterochka store concept and expanded this core store format in regions. (igd.com)Lidl in six-figure deal to position supermarket as 'on mums' side'
Lidl is looking to step into Asda's shoes by showing it is the supermarket for 'mums' through a partnership with Mumsnet Food. The six-figure partnership, which kicks off today and will last one year, will see Lidl sponsor the site and both brands partner to co-create shareable content. (marketingmagazine.co.uk)AU: IGA customers stay loyal but Aldi shoppers sample other aisles
The IGA grocery chain has triumphed in a key battlefield in Australia's $90 billion supermarket wars: customer loyalty. About 30% of consumers who mainly buy groceries at the Metcash-owned chain say they do not visit competitors Woolworths, Coles and Aldi in an average month, new research by Roy Morgan shows. In contrast, only 7% of people who shop mostly at German-owned Aldi have the same degree of loyalty. Aldi customers are also the most likely to visit all three competitor chains in an average month. Roy Morgan's general manager of consumer products, Andrew Price, said he was not surprised by the findings on Aldi. The supermarket has tripled its market share in the past decade. In an average month, 30% of consumers who mainly shop at IGA, only shop at its stores. In contrast, 7% of those who mainly shop at Aldi, exclusively shop there. (smh.com.au)
Source: Roy Morgan - Fairfax Media graphic
AU: Search for new Woolies CEO intensifies
Woolworths' new chairman Gordon Cairns has sacrificed three non-executive director roles to devote more time to finding a new CEO, as the retailer faces its biggest challenges since listing 22 years ago. (goodfruitandvegetables.com.au)Axfood: e-commerce to launch in Sweden’s biggest cities
Axfood has revealed that it will launch e-commerce early next year in three of Sweden’s three largest cities; Stockholm, Gothenburg and Malmö following an employee pilot. To put this in context, market leader ICA plans to rollout online grocery to 150 of its stores by the end of this year. In an interview with Bloomberg News, CEO Anders Strålman said ‘If our growth continues and shopping online increases, approximately 1-1.5 billion of our revenues come from online sales in 2020, given the market is mature enough and ready for it’. He revealed that this would be equivalent to 2% of Axfood’s sales in 2020. (igd.com)Swedish Coop Sverige: investing in new store formats
Coop Sverige is to invest in new store formats, with stores being re-branded according to three clusters; Big Coop, Coop and Little Coop. Commenting on the announcement, President and CEO Sonat Burman-Olsson said: ‘We have worked intensively to develop, rationalize and restructure the Coop in different areas, all aiming to attract customers and turn a profit in 2017. It feels great to now be able to show our customers clear results of the change program based on customer experience, value for money and clarity of what our different store formats offer’. The retailer is also launching two concept stores this week in southern Stockholm, offering a new appearance and changing layout. Later this year, other stores will be converted to the new concept, with the process continuing throughout 2016. Today, the retailer is also set to undertake its biggest price cut campaign ever, lowering the prices of thousands of products. ‘The price reduction is an important part of our efforts to strengthen our position as an affordable player’, commented Burman-Olsson. (igd.com)Tesco looking to offload central and eastern Europe business: reports
Tesco Plc, which announced the sale of its South Korean business on Monday, is also considering divesting its central and eastern European operations to further reduce debt, according to three people familiar with the matter. While the company is discussing options with advisers, no final decision has been made, said the people, who asked not to be identified as the discussions are private. The business, valued by Sanford C. Bernstein at £1.9bn , includes over 1,110 stores that generate 6.45bn pounds of revenue. Shares of Tesco’s Turkish unit rose as much as 9.3%. Tesco CEO Dave Lewis has pledged to shore up the company’s finances and regain an investment-grade credit rating. The agreement to offload its South Korean business knocks £4.23bn off total borrowings. Yet the figure represents just under one-fifth of the retailer’s indebtedness. A Tesco spokesman declined to comment. Alongside the Korea sale, Tesco is exploring options for its Dunnhumby data-analytics unit. A sale of its Thai business, which includes more than 1,700 stores, could fetch in excess of £4bn, estimates John Kershaw, an analyst at Exane BNP Paribas. Compared with its operations in Asia, Tesco’s stores in central and eastern Europe -- spanning Hungary, Poland, the Czech Republic, Slovakia and Turkey -- have less to offer potential acquirers, according to analysts. Sales have fallen for three straight years amid intense competition from low-cost retailers like Germany’s Aldi. “In its central and eastern European markets, economic conditions have been tough,” Bryan Roberts, an analyst with Kantar Retail, said by phone. “Tesco has been getting an absolute kicking from the discounters.(esmmagazine.com)Coop Danmark reveals country-wide service
Market leader Coop Danmark, which provides an online grocery service via Irma.dk, has advised that shoppers throughout Denmark will now be able to purchase grocery products online for delivery five days a week. Until recently, the service was only available in the metropolitan area around Copenhagen; the country’s largest island, Zealand and key towns on the islands of Funen and Jutland. Commenting on the development, Jesper Wacherhausen, commercial director of Irma.dk said, ‘This is a very significant step towards providing online grocery shopping in its golden age in Denmark… In addition, our cooperation with Post Denmark [means] it is possible to do it at an affordable price. Finally, we are seeing a general growing interest in buying quality groceries online, and that this interest is currently spreading from Copenhagen to the entire country’. (igd.com)Dansk Supermarked acquires iPosen
Dansk Supermarked has acquired iPosen.dk, a four year old start-up company that delivers groceries to older shoppers. Going forwards the service would expand delivery to include other consumer groups, such as schools. In April this year, competitor Dagrofa capitalised on Metro Cash & Carry's exit from Denmark by offering an online grocery service for small businesses. (igd.com)
Online grocery stores: Will customers continue to come once the freebies dry up?Please, click here to read the article.