US: Kroger cuts profit outlook
Kroger reported Thursday morning that it recorded $36.3bn in first quarter revenue, a 4.9% increase that managed to come in above the $35.5bn Wall Street consensus. Net income for the quarter came in at $303m, down sharply from the $696m recorded during the same time in 2016. Earnings for the quarter came in at $546m, or 58 cents per share -- a penny ahead of the analyst consensus. While Kroger's top-line growth was relatively solid, the picture on the same-store sales front was a little cloudier: the company said it recorded a 0.2% decline in same-store sales excluding fuel, a result that marks the third consecutive quarter of a decline in that category. Same-store sales including fuel, however, grew 1.6% in the first quarter, and Kroger executives said Thursday that identical-store sales for the second quarter are trending positive. (chainstoreage.com)
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Outgoing Carrefour boss confident on retailer's future
Carrefour boss Georges Plassat ended his five-year tenure on an optimistic note on Thursday, telling shareholders his turnaround strategy had put the world's second-largest retailer on a growth path and that his successor would do well. "Alexandre Bompard will take the reins on July 18. I am convinced he will do very well. I want to welcome him," Plassat told the company's annual shareholders meeting, to applause. (Reuters)Tesco reports strongest UK sales growth for seven years
The popularity of fresh food helped drive like-for-like sales to growth of more than 2% at Tesco in the first quarter of the financial year. The supermarket said it had seen particularly strong growth in fresh produce as it enjoyed like-for-like sales growth of 2.7% in food, compared to the same time last year. Tesco reported its strongest quarterly sales performance for its home market in seven years on Friday. The retailer said UK like-for-like sales rose 2.3% in the 13 weeks to May 27, its fiscal first quarter - a sixth straight quarter of growth. The outcome was ahead of analysts' forecasts, in a range of up 1.7-2.0%, and built on growth of 0.7% in the previous quarter. Tesco said total group like-for-like sales rose 1%. "This is a good start to the year," its CEO said. (Reuters / The Telepgrah)Finns prefer higher quality grocery food over price
The choices consumers make when buying food are more informed and they increasingly invest in food quality, according to research commissioned by Finnish retailer Kesko. The retailer's report reveals that consumers are also expecting grocery stores to have a wider selection of food than before. These trends overtake the idea that consumers were more price conscious when shopping above other things. It found that half of all Finns fall into a new category called ‘the hybrid consumer’. These are consumers ‘for whom only the highest quality or the most ethical option for a particular product is acceptable, but who is simultaneously extremely price conscious about another product’. (esmmagazine.com) Irish Mash Direct lands new lucrative Tesco deal
An award-winning Co Down food company has secured a new deal to supply UK supermarket giant Tesco. Comber firm Mash Direct has landed a contract which will see five of its products go 73 Tesco stores across England from this week. The latest contract follows just a month after Mash Direct secured a similar deal with Asda to supply five lines of its award-winning produce to Northern Ireland stores. (irishnews.com) Germany: Real launches new "My Little Organic Garden"
German retail chain Real launched their new collection campaign "My Little Organic Garden". The retailer plans to reach mostly children during the six weeks run-time, but also interested adults. The goal is to excite them about nature and gardening and invites them to plant their own little garden for herbs and vegetables. Croatian Konzum sales down 10.8% in five months
Croatian supermarket chain Konzum has experienced a decrease in sales of 10.8% in the first five months of 2017 compared to the same period last year. In an interview for the N1 TV station, the Croatian government commissioner for Agrokor, Ante Ramljak, said that the drop was lower than expected. He expects that, once the financing for new goods and stocks is secured and stores are supplied, Konzum will see revenue growth and will end the year with profit. He also said it will be closing a certain number of outlets in the near future. (esmmagazine.com)Portugal: Continente sees 25% growth in online customers
Portuguese hypermarket chain Continente had over 500,000 customers using its online store in 2016, representing an increase of 25% over the previous year. Continente's marketing director, Pedro Santos, told Jornal de Negocios that changing purchasing habits have led grocery retailers to give increased priority to the digital channel, adding that the retailer has seen double-digit growth for online purchases in recent years. (esmmagazine.com)Spar Natural wins international retailer of the year
Spar has won the NACS Insight 2017 International Convenience Retailer of the Year Award for its Spar Natural convenience store in Gran Canaria, Spain. The award was presented at this year's International Convenience Retailer Awards in London on 14 June. The Spar Natural store, which was launched in Gran Canaria in January 2017, recognises that 'trends in health and wellness are driving growth within the retail food industry' and that this is an area which is set to 'grow significantly' within the next five years. (esmmagazine.com)