Continued network expansion and the imposition of a higher minimum wage dragged down 7-Eleven Malaysia Holdings Bhd’s net profit for the fourth quarter (Q4) and for the full year ended Dec 31, 2016 (FY16). In a filing with Bursa Malaysia, the convenience store owner and operator said net profit fell by about a third, or 32%, to RM9.52mil in Q4, as selling and distribution expenses increased by RM9mil from a year earlier. (thestar.com.my) Ahold Delhaize Q4 boosted by U.S. performance
Supermarket operator Ahold Delhaize reported fourth quarter earnings at the top end of estimates as its American business delivered a strong performance with volume growth offsetting price deflation. However, supermarkets there have been faced with the worst food deflationary environment in over 20 years, Morgan Stanley analysts said. CEO Dick Boer told jounalists during a call he expects a return to inflation in the second half of the year. The company reported fourth quarter pro forma underlying operating income of 608m euros, down 3.9% from the same period a year ago due to the impact of a 53rd week in 2015. (Reuters)Ahold Delhaize's CEO says focus is on improving efficiencies
Dick Boer, CEO at Ahold Delhaize, discusses the company's 4Q results, his plan to reduce costs by $500M and how Donald Trump's tax plans may impact his business. He speaks to Bloomberg's Anna Edwards and Manus Cranny on "Bloomberg Daybreak: Europe." (Bloomberg)
US: Ahold taps Wilkinson to lead Fresh Formats
Stop & Shop said that it has appointed Dean Wilkinson to lead Fresh Formats LLC, operator of bfresh stores, effective Wednesday. Scott Miller, interim SVP of operations at Fresh Formats, has decided to leave the company to pursue other opportunities, the company said. As previously reported, parent company Ahold Delhaize is folding Fresh Formats into its Stop & Shop operating division as part of a restructuring to support local brands. (supermarketnews.com) Grocers think customers willing to by imperfect produce (Research)
New global consumer research from machine learning, predictive analytics provider Blue Yonder, has revealed 73% of shoppers are open to buying imperfect fruit and vegetables. Additionally, Blue Yonder has found that 90% of grocery retailers felt their customers would buy imperfect fruit or vegetables at a discount. (newfoodmagazine.com) ACSI: Trader Joe's is America's favorite retailer
Amazon and Trader Joe's are America's favorite retailers, according to a new survey. The e-commerce company and grocery chain each received a a score of 86 out of 100 in the latest American Customer Satisfaction Index, which was released on Tuesday. Wal-Mart's satisfaction rating jumped 9% year over year. (time.com) UK: McColl's 2016 sales grow
Major UK neighbourhood convenience chain McColl's Retail Group has issued its financial results for the 52 week period to 27 November 2016, recording total sales of £950.4m up 1.9% on the previous year. The business recently launched a new 'focus on fresh' trial into 20 stores to build capability in this category. (igd.com)Portugal: Jerónimo Martins's 2017 investment programme
As part of its 2016 FY results statement, Portugal-based Jerónimo Martins has discussed its investment plans for 2017. Announcing a strong increase in its capex programme, to €700m for 2017, from €482m in 2016, the retailer set out its belief in continued expansion in Poland and Colombia. (igd.com) US: Target shares dive on earnings outlook, price cut plans
Target Corp said on Tuesday it will rely more on low prices to compete with rivals like Wal-Mart and Amazon, admitted many of its stores needed freshening up, and told Wall Street its sales and profit estimates for 2017 are too high. Shares of the retailer plunged to 2-1/2-year lows in heavy trading. Target's same-store sales fell 1.5% in the fourth quarter, which includes the holiday season. That was steeper than the 1.3% drop analysts estimated, according to research firm Consensus Metrix. Target expects same-store sales to decline by low-single digits in fiscal 2017. The company said it is “very focused” on improving the grocery business and will be making sure the retailer is competitively priced in that department. (Reuters)Finnish grocery trade up 1.4% in January 2017
The value of the Finnish grocery industry was €1.275bn in January 2017, which is 1.4% higher than the total recorded a year earlier, according to Päivittäistavarakauppa ry, the Finnish Grocery Trade Association. (esmmagazine.com) DIA Group to add more franchised stores in Portugal
Spanish retailer DIA Group is planning to expand its presence in Portugal with the opening of new franchised stores after improved results in 2016. During a press conference in Madrid, Amando Sánchez, corporate director of DIA Group, announced that the company plans to continue renovating the stores it owns and also “significantly” increase the number of franchised stores, daily Jornal de Negocios reported. (esmmagazine.com) Amazon awaits FDI approval to deliver groceries at doorstep
Ten years after Amazon began the experiment with groceries at its Seattle home, the US e-commerce company is set to start selling farm produce, lentils and milk in India once it receives the government’s approval for its wholly-owned foods unit. Please, click here to read more at economictimes.indiatimes.com. UK: Waitrose to sell ruby red Ippolito Oranges
Waitrose has introduced ruby red Ippolito Oranges to its Waitrose 1 range. The fruit is grown in the hills of Huelva, in southern Spain, where the trees receive warm days and cool nights. This is what creates the pigmentation that we commonly refer to as blush or blood oranges, the company says in a press release. Kenya: Uchumi optimistic despite half-year loss
The management of Uchumi Supermarkets has renewed hope of returning the loss-making retailer to a break-even point in the wake of improved performance for the half-year period ended December 2016. The publicly listed firm yesterday reported a 46.22% drop in half year net loss from Sh1.01bn to Sh547.31m in the six months ended December 2016. (the-star.co.ke)