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Watchdog accuses UK grocers of overcharging farmers

HelloFresh is Europe's fastest-growing company

Australian Aldi beefs up product range
Aldi is beefing up its product range and investing hundreds of millions of dollars in refurbishing its ageing East Coast stores as it attempts to regain stalling momentum. An Aldi spokeswoman said the discounter had already added 100 new products in the past two years, bringing its total to 1450, and there is speculation it could add up to another 200 products. “It’s our job to ensure we continue to evolve and adapt our product offering to meet the needs of tomorrow’s shopper,” she said. Psychologist and retail behavioral science expert Bri Williams told ACA the design changes to Aldi stores were deliberate moves to draw in more customers. 'As soon as you come through the door you're confronted with beautiful fresh food, that's a big change in how they're now laying out their stores,' Ms Williams said.
(news.com.au / dailymail.co.uk)

HelloFresh is Europe’s fastest-growing company
HelloFresh ranked first in a list of Europe’s fastest-growing companies. The Financial Times looked at companies in Europe that have achieved the highest percentage growth in revenues between 2012 and 2015. HelloFresh saw its revenue increase by 13,159% during that period. (ecommercenews.eu)

Watchdog accuses UK grocers of overcharging farmers

The British Retail Consortium (BRC) has denied allegations made by the Groceries Code Adjudicator, Christine Tacon, that suppliers are being underpaid millions of pounds every year. Among other things, the watchdog accused retailers of charging farmers for customer complaints – sometimes up to £55 each – and underpaying suppliers when they run promotions. Ms Tacon told a Westminster Food and Nutrition Forum event that ‘drop and drive’, where lorry drivers drop their delivery and drive away, leaving retailers to count up the products, is her ‘number 1 problem’. She claims 20 suppliers have already lost £15m a year due to the practice. (fginsight.com)

Russia: X5 Retail opens its 10,000th store

Russian food retailer X5 Retail Group has opened its 10,000th store - a Perekrestok store in Moscow.  CEO Igor Shekhterman said: "Today's concurrent opening of 10 stores, including X5's 10,000th location, marks yet another confident step towards our strategic goal of capturing a 15% market by the end of 2020." (stockmarketwire.com)

Groupe Casino posts marginal increase in sales in French market

Groupe Casino has posted a 0.2% increase in same-store sales under their banner for the first quarter of the year, in its home market of France, with same-store total group sales rising by 2.5% for the period. Same-store sales of its Géant hypemarket operation decreased by 1.9%. Internationally, Casino saw organic sales up 7.7%. (esmmagazine.com)

SA: Pick n Pay profit rises as grocer adds fresh produce
Pick n Pay Stores Ltd. reported a 17% increase in full-year profit as the South African supermarket chain extended its fresh-produce range, opened stores and focused on keeping prices low amid weak consumer spending. Sales rose 7% to 77.5bn rand ($5.8bn). (Bloomberg)

Walmart India weighing food retail possibilities
Walmart India is “evaluating” new foreign direct investment (FDI) guidelines for the food retail space. This follows the government permitting 100% FDI in the sector. Walmart India president/CEO Krish Iyer describes the government’s decision as a good step. “It’s a very noble objective in terms of being able to double farmers’ income and reduce food waste.” (insideretail.asia)

India: BigBasket and Grofers start merger talks

Online grocer BigBasket, run by Supermarket Grocery Services Pvt. Ltd, and smaller rival Grofers India Pvt. Ltd have initiated talks for a merger that, if consummated, will also see SoftBank Group, an existing investor in the latter, participate in a $60-100 million funding round in the merged entity, said three people aware of the development. (livemint.com)

US: Why grocers are launching branded meal kits
A recent Harris Poll found that one in four adults have purchased a meal kit in 2016 (25%) and 70% of meal kit purchasers are still doing so. Meal kits are hitting a mark with consumers and delivering on key convenience and health trends in the marketplace today. Among meal kit purchasers, the top reasons for buying include saving time on meal planning (46%) and the short prep and cook time (45%). (ownbrandsnow.com)

Google launches Aero app to deliver food in India

A new hyperlocal shopping app, Aero, will deliver food and other handy man services to Mumbai and Bangalore. Google is working with restaurants and home service businesses as partners. Currently, it has Freshmenu, Box8 and Fassos for food partners, and UrbanClap and Zimmber for home services. Users can pay via card, netbanking or cash-on-delivery within the app. (igd.com)

Denmark’s Netto appoints Michael Loeve as new international director
Dansk Supermarket, which operates the Netto banner, has appointed former CEO of B&Q UK & Ireland, Michael Loeve, as the new director of Netto International. In his new role, he will be responsible for the chain’s operations in Denmark, Germany, Poland and Sweden, encompassing some 1,300 stores. (esmmagazine.com)

Vietnam leads convenience store charge

Asia's grocery market is the largest in the world, with a predicted 6.3% compound annual growth rate (CAGR) up to 2021, according to the worldwide food and grocery research specialists at IGD. The size of the Asian market is forecast to reach US$4.8 trillion by 2021: equivalent to that of Europe and North America combined. In the convenience store channel alone, IGD is forecasting a high double-digit CAGR over the next four years in Vietnam (37.4%), the Philippines (24.2%) and Indonesia (15.8%), based on the performance of the leading convenience store operators in each market. (bangkokpost.com)

UK's The Co-operative launches food redistribution scheme

UK retailer The Co-operative has launched a food redistribution initiative, which aims to benefit the 2,500 towns and villages across the country where stores are located. The scheme, which has been trialled at 60 stores so far, will see the Co-op donating enough food for up to 20 million meals per year to local causes. (esmmagazine.com)

Russia: Lenta’s conservative approach for a sustainable growth strategy
Lenta reported a respectable growth of 21.2% in sales revenue and 3.9% in like-for like performance. Lenta’s pillar of profitable growth is its emphasis on cost-optimisation via joint-procurement agreements, an integrated supply chain, and optimised store design. The retailer expects profitable growth with a 20% rate of return on capital expenditure in 2017. (igd.com)

Bulgaria: Turnover T-Market  increases by over 20% in 2016
In 2016 the turnover of the T-Market stores increased by more than one fifth up to €88.4m (172.9m leva), which is a 22.1% increase compared to 2015. This transpired from a report of MaximaGrupe, of which T-Market’s owner, Maxima Bulgaria, is a part. The Bulgarian company is reporting the highest growth within the group, which operates in another four countries. (agroberichtenbuitenland.nl)

UK chains are charging up to 23% more than their full-size stores
The price differences between shops belonging to the same supermarket chain can be eye-watering — even though the outlets may be less than a mile apart. The Daily Mail surveyed supermarkets all located within a 2.5-mile radius in North-East London, with prices checked over a 48-hour period. Some products had a price difference of more than 20%. Please, click here to read more. (dailymail.co.uk)

China: JD.com to build 150 drone launch facilities in China by 2020
Chinese e-commerce heavyweight JD.com plans to build 150 drone launch facilities in southwestern Sichuan province for unmanned aerial vehicle (UAV) parcel delivery. Having secured government approval in select provinces, autonomous aerial deliveries in China are at the forefront of commercial drone innovation. JD.com CEO Richard Liu told local media that the goal of 150 launch facilities was three years out. Liu also said that drone deliveries would reduce the costs of shipping freight by 70%, compared to conventional truck delivery. (aircargoworld.com)

New Whole Foods investor thinks Amazon or Kroger should buy the struggling company
Whole Foods sales have been plummeting for the past six quarters, leading analysts to worry that the struggling organic grocery store chain may need to do something drastic to get back on top again. Jana Partners — an activist Whole Food investor — is determined to turn the grocery chain’s success rate around. Jana has said that Whole Foods shares are undervalued due to “chronic underperformance” and subtle setbacks in daily operations that affect the bottom line. Please, click here to read more at thedailymeal.com.

US: Wal-Mart in advanced talks to buy another e-commerce
Wal-Mart Stores is in advanced discussions to buy online men’s fashion retailer Bonobos Inc, Recode reported on Friday, citing sources. The deal, if announced, would become the fourth e-commerce acquisition by the retailer in less than a year. (Reuters)

Whole Foods says it’s lowering prices
The head of Whole Foods’ grocery operations is spearheading an effort to centralize purchasing in order to lower the grocery chain’s prices. Please, click here to read more.

US: Amazon reportedly exploring purchase of BJ’s wholesale

The New York Post, citing sources close to the matter, reports that Amazon has expressed modest interest in the Northeast-regional warehouse chain. Amazon, which is prepping to open its first checkoutless, cashier-free convenience store in Seattle, has long been rumored to be joining the physical store game, mainly focusing on grocery stores. (consumerist.com)

US: ShopRite fighting childhood obesity with KidsFit program

Barnabas Health and ShopRite have partnered to launch a free nutrition and wellness education program for children and families at ShopRite stores throughout New Jersey. The KidsFit at ShopRite program is aimed at preventing childhood obesity.

"Canadian food deflation to help grocers"
Grocery basket price deflation appears to be tapering and that is good news for Canadian food retailers, according to two industry reports. While March results suggest grocery deflation continued in the industry, the level of deflation was lower than February’s, analyst Peter Sklar of BMO Capital Markets wrote in an analysis published Monday. Click here to read the article at business.financialpost.com.

South Africa’s big 12 retailers shift from expansion to tech investment
Most South African retailers are no longer speaking about African expansion and aggressive store roll-outs, an expert says. Data from the big 12 retailers in South Africa show that they are putting their money into store refurbishments and information technology. Click here to read more at afkinsider.com.

US: Save-A-Lot adding another Lidl veteran
The executive management of Save-A-Lot is adding a second veteran of Lidl, SN has learned. Kevin Proctor, who was among the leaders of Lidl’s Ireland team sent to the U.S. in 2013 to begin establishing a stateside presence for the German retailer, is joining the Earth City, Mo.-based discounter, sources said. (supermarketnews.com)

US: H-E-B turns to vertical farming
The specialty food division of H-E-B will grow about half a dozen varieties of salad greens at a Dallas store for customers to purchase, according to Dallas Morning News. The greens will be raised behind the store in a four-level, vertical farm inside a retrofitted 53-foot long shipping container. They will be grown under magenta and other color lights, and will not need pesticides or sunlight. The cost of the produce will be similar to other greens being sold at H-E-B. (fooddive.com)

US: Kroger targets sustainable and fair trade groceries
As part of its new 'Sustainability Lives Here' campaign, Kroger is offering customers digital coupons targeted towards sustainable products. They are targeted towards certified products such as Fair Trade, Rainforest Alliance, Forest Stewardship Council, along with organic and natural products across its departments. (igd.com)

US: Strack & Van Til being sold
The parent company of Region institution Strack & Van Til, Northwest Indiana's largest locally owned grocery store chain, plans to sell off 22 of its stores and close nine Ultra Foods discount supermarkets, company officials said Tuesday. (nwitimes.com)

US: Supervalu plans to retain Unified private labels: CEO
Supervalu plans to continue offering Unified Grocers’ private brands to Unified’s customers upon completion of their planned merger, Supervalu President and CEO Mark Gross said. “Our goal, every step of the way, will be to provide products and services that work best for all our customers and their stores,” he said in an email exchange. “This includes continuing to distribute high-quality Topco and Unified private label brands such as Springfield, Western Family and Natural Directions.” (supermarketnews.com)

Lidl's rapid N.J. expansion reportedly gets another approval
Lidl won approval Monday to build a store on the site of a former school in Atlantic County as part of its rapid expansion plan for New Jersey, The Press of Atlantic City reported. (nj.com)

Publication date: 4/19/2017
Author: Jan Willem de Jongste
Copyright: www.freshplaza.com


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