The X5 Retail Group said it needed to take a fresh look at its flagship cut-price store business in a tough market environment after disagreements over strategy with the unit’s head resulted in her departure. Russia’s biggest food retailer, X5 has been pressing ahead with the expansion of its low-cost Pyaterochka chain as an economic downturn hit household incomes, denting consumer spending.Source: reuters.com
Brazil's GPA beats profit estimates on higher wholesale revenues
Brazilian food retailer GPA, which controls some of the largest supermarket chains in the country, beat first-quarter profit estimates after a strong performance by its wholesale unit. In a securities filing GPA, owned by France’s Casino Guichard Perrachon SA, said net income rose 7.8% to 226mln reais ($65.05mln), beating a Reuters consensus estimate of only 8mln reais. GPA said an increase of 25% on revenues from wholesale chain Assai boosted its results. Earnings before interest, taxes, depreciation and amortization (EBITDA) came to 503mln reais in the quarter, slightly below a Reuters consensus forecast of 510mln reais.Source: reuters.com
Lidl will open at least seven new stores in Bulgaria in 2018
"This year, Lidl will open at least seven stores in the country, mainly in Sofia, Varna and Plovdiv," said Milena Dragiyska, Chief Executive Officer for Capital.bg. The company, which has been operating in Bulgaria since 2010, is probably the second largest after Kaufland, with the opening of new sites continuing. Last year the plan was more conservative and three stores were found. The investment in the construction of an object without land is at least EUR2mln.Source: novinite.com
South Korea's retail sales up 9.4% in March on solid online, offline sales
Retail sales in South Korea jumped 9.4% in March compared with a year ago on the back of upbeat sales at both online and brick-and-mortar stores, government data showed. Sales of 13 major online stores and market places soared 17% on-year last month, the Ministry of Trade, Industry and Energy said, without disclosing their sales figures. Sales of 13 offline-based retailers, including department stores, discount chains and convenience stores, also advanced 5.4% over the period due to upbeat sales at convenience stores, the ministry said.Source: yonhapnews.co.kr
Portugal: Jerónimo Martins Q1 2018 results
Portugal-based Jerónimo Martins said net sales and services were up 12.1% without foreign exchange (w/o FX) from Q4 17 to reach €4,200mln in Q1 18. The group has a confident outlook for the year ahead. Jerónimo Martins said all banners ended 2017 with positive sales growth and reinforced their market positions. Expansion is the retailer’s strategic focus in its three markets (Poland, Portugal and Columbia), which all remain promotionally driven. Capital expenditure for the 2018 financial year was confirmed at between €700mln to €750mln, and start-up losses for Ara and Hebe are expected to reduce.Source: retailanalysis.igd.com
Singapore: Sheng Siong posts 6.6% Q1 profit growth on revenue rise & better margins
Supermarket operator Sheng Siong Group chalked up higher profits in the first quarter on the back of an increase in turnover and improved margins. Net profit came in at S$18.25mln for the three months to March 31, it said in unaudited results. This was a rise of 6.6% year-on-year. Sheng Siong's profit growth largely tracked its gain in revenue. Turnover was S$228.28mln, higher by 5.1% on the previous year. Gross margin improved by one percentage point, to 26.2%, as the supermarket sold more fresh products, which command better margins. It also earned rebates from suppliers, thanks to marketing efforts.Source: businesstimes.com.sg
US: Weis details $101mln CapEx plan
Weis Markets intends to devote $101mln to capital expenditures in 2018 for projects including two new stores, 20 remodels, a new fuel center and four new pharmacies. Weis spent around $95.9mln on capital projects a year ago, or about 2.8% of its sales. The new stores include the Nottingham, Maryland, store that opened earlier this month and a new unit in Randolph, New Jersey, expected to open this summer.Source: winsightgrocerybusiness.com
US: Smart & Final launches Instacart-powered app
Building on its partnership with Instacart, warehouse grocery chain Smart & Final Stores Inc. has launched the Shop Smart & Final App. Smart & Final said that the Instacart-powered app enables users to set up deliveries for groceries - including household- and club-sized items - in two hours or less and get real-time updates on order fulfilment.Source: supermarketnews.com
US: Food Lion buying 4 SC Bi-Lo Stores
Food Lion has entered into a deal to acquire four Bi-Lo stores in South Carolina from Jacksonville, Florida-based Southeastern Grocers, which filed for Chapter 11 bankruptcy protection last month. The stores are located in Myrtle Beach, Surfside Beach, Florence and Columbia. "We are so excited to add these four new locations to our network of nearly 70 stores serving the greater Myrtle Beach, Florence and Columbia areas,” noted Food Lion President Meg Ham.Source: progressivegrocer.com
Amazon jumps after smashing earnings
Amazon reported a huge beat across the board for its first-quarter earnings, with particular growth coming from its AWS cloud service and advertising business. Amazon's revenue, which includes sales from Whole Foods, increased 43% year-over-year. Its North America revenue jumped 46% to $30.7bln, while international sales grew 34% to $14.8bln. Net income more than doubled to $1.6bln, underscoring the company's renewed focus on growing profit margins.Source: cnbc.com