Prices at 365 by Whole Foods Market are anywhere from 15% to 20% below those at legacy Whole Foods stores, according to surveys by three industry analysts — making cannibalization of legacy stores a potential problem, they said. “This model will recruit incremental customers to the legacy Whole Foods system without sacrificing profitability,” William Kirk, an analyst with RBC Capital Markets, New York, said in a report. (supermarketnews.com)Ahold first quarter beats as sales, margins rise; Delhaize merger 'on track'
Ahold, the operator of supermarkets in the United States and Netherlands, reported on Wednesday first-quarter earnings that beat analyst expectations, with underlying operating profits up 15% on sales growth and better margins. Underlying operating profit for the quarter was €449m ($499m). Analysts polled for Reuters had forecast underlying operating income of €430m, up from €390m in the first quarter of 2015. Sales rose 3.5% at constant exchange rates to €11.8bn with an underlying profit margin of 3.8%, up from 3.5% in the same period a year earlier. "We continue to make good progress on our proposed merger with Delhaize, which we expect to complete in mid-2016," CEO Dick Boer said. In the United States, where Ahold does two-thirds of its business, same-store sales were up 0.8% excluding gasoline, while overall sales grew 3.0% to €7.3bn at constant rates, due mostly to the opening of 25 A&P stores around New York City. U.S. margins improved to 4.0% from 3.7%. In the Netherlands, same-store sales rose 2.9%, and net sales grew 4.9% to €3.9bn. (Reuters)Sales down 1% at Britain's Tesco, outperforms main supermarket rivals
Sales at Tesco fell 1% year on year in the 12 weeks to May 22, according to industry data published on Wednesday, showing signs of stabilisation for Britain's biggest supermarket chain in a tough market for the "Big Four" players. Tesco 
outperformed its main rivals, with sales at Sainsbury's down 1.2% while Walmart's Asda suffered a 5.1% fall and Morrisons dropped 2.1%, Kantar Worldpanel said. All four companies are 
being squeezed by the march of the discounters in Britain, led by Aldi, which increased sales by 11.4%, and Lidl, up 14.2%. "The big four continue to be under pressure, with sales declining at each retailer this period," Kantar said. "Tesco saw signs of stabilising in comparison to historic declines over the 
past two years." “These are the most encouraging figures for the supermarkets for quite some time, driven by the fortnight up to the 14 May when good weather helped value growths return to positive territory of 2.1 per cent,” says Mike Watkins. Nielsen's UK head of retailer and business insight. (Reuters)AU: Woolworths grocery basket now cheaper than Coles
Grocery prices at Woolworths and Coles are still more expensive than at Aldi, but the gap has fallen sharply as the big chains invest more than $1bn into promotions and shelf prices. And for the first time in years, Woolworths can now honestly claim that a basket of groceries at Australia's largest supermarket chain costs less than an almost identical basket at Coles. According to a survey by Credit Suisse, a basket of 110 packaged groceries and fresh food at Woolworths cost $573 last week, compared with $586 at Coles and $465 at Aldi. (smh.com.au) Indonesia: Alfamart to launch click and collect
Alfamart is going to utilize its 10,000 store network as pickup points for its new online shopping platform Alfacart. Alfacart, the new e-commerce platform will carry one million products from sellers, and is expected to generation IDR1tn (US$70m) transaction. The existing shopping website Alfaonline will be replaced. The advantage of Alfacart over the other e-commerce players lies with its large store network of more than 10,000 throughout Indonesia. The retailer is also expected to be opening another 1,200 stores this year. (igd.com)
Coop Hungary: +1.95% in 2015Coop Hungary has revealed that it achieved revenue of HUF 571bn (€1.82bn), an increase of 1.95% versus last year. (igd.com)
SPAR Hungary turnover increases
SPAR Hungary saw a 2.8% increase in turnover to €1.6bn. During the year, independent SPAR partners contributed to growth, while SPAR International partnered with SPAR Hungary to develop a new concept supermarket, which was rolled out across Hungary's markets in 2015. (igd.com)
LuLu opens its first hypermarket in IndonesiaE-based retail major LuLu Group has opened its first hypermarket in Indonesia with plans to invest $500mn in the country within the next three years as part of its global expansion strategy. (gulf-times.com)
Kenya: Botswana retailer buys Ukwala stores
Botswana supermarket chain Choppies Enterprises has finally succeeded in its year-long quest to enter Kenya's retail space through the acquisition of Ukwala Supermarkets stores. The retailer on Monday announced its takeover of eight Ukwala outlets across the country. (allafrica.com)New tax forcing foreign retailers to reconsider expansion in Poland
Multinational retailers in Poland may be forced to cut expansion plans in the country as a new levy aimed at helping domestic businesses is likely to affect profitability. European retailers such as Jerónimo Martins, Carrefour and Auchan, will pay about €360m a year more from July, due to a tax imposed by Poland's government. The 1.4% tax of sales revenue is aimed at larger companies in a bid to promote local businesses. (esmmagazine.com)Tesco launches new English apple variety
Tesco has begun stocking a new English apple variety which it claims “matures in taste like a fine wine”. The group said the Red Prince apple, grown in Kent by fruit growers Adrian Scripps, will “transform the UK apple industry and delight shoppers”. The apple will be available in spring instead of autumn due to its unique structure and the very latest storage technology. (kamcity.com)Waitrose & Coop Danmark in private label deal
Waitrose is to begin selling a selection of its private label products in Denmark following with an agreement to supply Coop Danmark's Irma supermarkets. Coop Danmark, which operated 83 Irma stores as of the end of 2015, will initially list around 40 products from Waitrose’s Cook’s Ingredients range, while the retailer will continue to consider other products. (igd.com)Carrefour launches DC in China's Guangdong
French retailer Carrefour SA launched a distribution center in Dongguan, Guangdong province, on Tuesday, to facilitate its business expansion in South China. Thierry Garnier, president and chief executive officer of Carrefour China, said the company will bring new business formats, including the online-to-offline business and convenience stores, and set up more hypermarkets in new cities. "Launching the distribution center will be of key importance to a long-term strategic development in China," Garnier said. (chinadaily.com.cn)US: SpartanNash introduces fresh-focused private brand
To cater to consumer demand and keep up with competitors, SpartanNash has introduced a private brand called Open Acres that will be used across fresh departments which includes produce too. “This new brand will be rolled out during the upcoming year featuring items in meat, deli, bakery and produce,” David Staples, EVP and COO, told investors during SpartanNash’s first quarter conference call Thursday. (supermarketnews.com)
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