Target is testing a new distribution model designed to speed up restocking, according to The Wall Street Journal. The retailer’s replenishment cycle is currently measured in days, and the updated strategy would cut that time to hours while reducing the amount of inventory held at stores. The program, which uses the same inventory to stock physical stores and fulfill e-Commerce orders, is being piloted at a warehouse in Perth Amboy, New Jersey. The “flow center” facility will send smaller, more frequent shipments tailored to each location’s specific demands, according to Preston Mosier, SVP of Global Supply Chain and Logistics Field Operations.Source: retailtouchpoints.com
US: H-E-B plans new distribution center in San Antonio
H-E-B aims to construct a new distribution and manufacturing center on the east side of San Antonio that would be the company’s largest single-build warehouse. An H-E-B spokeswoman confirmed plans for the 1mln-square-foot facility, in which the San Antonio-based supermarket chain is slated to invest at least $130mln over the next three years. The investment marks H-E-B’s largest ever for its supply chain and manufacturing arm.Source: supermarketnews.com
Jumbo cheapest Dutch supermarket; Albert Heijn the most expensive
Jumbo is the cheapest supermarket in the Netherlands, according to an annual study by consumer program Kassa. Albert Heijn is the most expensive, RTL Nieuws reports. For this study, Kassa bought the same, common products from large national supermarkets Albert Heijn, Aldi, Jumbo, Lidl and Plus. 26 products were bought from each store. Albert Heijn turned out to be the most expensive, with the basket of groceries costing 46.01euros. Jumbo came out cheapest at 41.25euros. Source: nltimes.nl
Seven-Eleven Japan enters online market with food home delivery
Seven-Eleven Japan, operator of the country's biggest convenience store chain, will launch smartphone ordering for delivery in as little as two hours, the company announced. The move marks a first for the convenience store sector in Japan, with Seven-Eleven looking to capitalize on food home delivery demand as online rivals such as Amazon Japan make inroads into the highly competitive field. The new service, "Net Konbini" - using the commonly shortened form of "convenience store" in Japanese - plans to reach 7-Eleven's entire Japanese network of around 20,000 stores, following a soft launch in October 2017 at 25 stores in Hokkaido, in northern Japan. It plans to expand the network to 1,000 stores in Hokkaido by August 2019.Source: asia.nikkei.com
TPG puts British discount retailer Poundworld up for sale: source
Private equity group TPG has put British discount chain Poundworld up for sale after receiving expressions of interest, prompting it to put a planned restructuring of the group on hold, a person familiar with the matter said. Poundworld had been due to launch a restructuring to enable it to close some stores as it battles a tough retail environment, but the source said that process had now been put on hold while TPG considers possible bids. Poundworld says it serves over 2mln customers a week through its more than 350 stores around the country. TPG bought a majority stake in 2015 in Poundworld, which competes with rival group Poundland and other discount groups.Source: uk.reuters.com
Aussie Farmers Direct customer database bought by YourGrocer
The Aussie Farmers Direct brand looks set to live on, despite the company going into voluntary administration and closing down two months ago. The online grocery store ceased operation in March, citing fierce competition from supermarket rivals Coles and Woolworths as a contributing factor. However, the name of the failed company will live on after being acquired by another online grocery chain, YourGrocer. The small, Melbourne-based grocery delivery service has purchased the brand and customer database of Aussie Farmers Direct for an undisclosed sum, and will begin to use its branding on the YourGrocer website and delivery boxes as a “stamp of quality”.Source: canstarblue.com.au
Ireland: BWG Group officially completes 4 Aces acquisition
BWG Group (BWG) announced that it has successfully, officially completed the acquisition of 4 Aces Wholesale. This follows the clearance of the acquisition by the Competition and Consumer Protection Commission (CCPC) on 2 May 2018. On 31 January 2018, the CCPC undertook an in-depth investigation to 'establish whether the proposed transaction would result in a substantial lessening of competition in any market for goods or services in the State' following BWG's initial announcement that it had agreed terms to acquire the well established independent wholesaler and member of the Gala Retail Group, for an undisclosed sum. “4 Aces will further strengthen our fast growing wholesale operations and we look forward to building on the great service that it currently delivers to its customers by leveraging our significant size and scale and our highly sophisticated wholesale supply chain,” said Leo Crawford, Group CEO, BWG Group.Source: checkout.ie
Poland: Eurocash Group announces financial results for Q1 2018
Eurocash Group’s sales, calculated in accordance with the IFRS 15 standard in effect from this year forward, reached PLN5bln in the first quarter of 2018, denoting 7.5% growth compared to the same period in 2017. Eurocash Group’s sales are driven by very good results in the wholesale segment, which expanded by 7.2% y/y, as well as the retail segment, which, taking into account fresh product distribution, grew by 8% y/y. Consolidated gross margin on sales in the first quarter of 2018 exceeded 11.6%, compared to 11.4% a year earlier. Eurocash Group’s EBITDA in Q1 2018 increased by 5.7% y/y to PLN39.6mln. Consolidated net profit was PLN-18.5mln, compared to PLN-15mln in Q1 2017. Eurocash Group’s financial result continues to be affected by expenditures on development of strategic projects intended to secure long-term competitiveness for independent entrepreneurs operating retail stores in Poland.Source: eurocash.pl
Germany: Penny to modernise its regional structure to 'balance performance'
Rewe Group's discount banner Penny has announced that it is modernising its regional structure to focus on five regions, rather than the previous eight, in order to balance the chain's performance. The German discounter boasts approximately 2,200 branches, and has said that the size differences between the individual regional portfolios proved to be disadvantageous. The smallest region is Rosblach with only 189 branches, while the largest, Wiesloch, has 404 branches.Source: esmmagazine.com
Brazil retail sales up in March, cap weak first quarter
Retail sales in Brazil rose in line with expectations in March, capping a weak first quarter with more evidence that the economic recovery hit a bump at the start of the year. Retail sales rose 0.3% from February, government statistics agency IBGE said, matching the median estimate in a Reuters poll of economists. Supermarket and household good sales accelerated, mostly due to the Easter holiday in March. Easter last year was celebrated in April.Source: reuters.com