NCR Corporation, a global leader in omni-channel solutions, announced that its self-checkout solution is a key part of Kaufland’s store reinvention initiative. The German hypermarket chain embarked on a store transformation journey to help improve the in-store shopping experience, reduce waiting times and increase customer loyalty while at the same time creating more value for customers with smaller baskets. Kaufland equipped about 160 stores with the NCR self-checkout solution, with plans to expand across more stores throughout the next few years. Kaufland is the first grocer in Germany to embrace a comprehensive self-checkout strategy. NCR supported Kaufland’s self-checkout deployments with comprehensive consulting services as well as detailed location and process analysis in every store. Based on this analysis, NCR and Kaufland developed an individual self-checkout concept and matching checkout zone design for each store that helps to convert simple customer transactions to interactions that matter.Source: groceryretailonline.com
UK's Tesco Direct closing down: Supermarket scraps online shopping site
Tesco has revealed plans to close down its loss making website, Tesco Direct. The closure, which puts 500 jobs at risk, came as the Tesco group said it could not be made profitable as an independent company. The website sold clothing and home ware, not food, and was the supermarket giant’s attempt to take on Amazon. Now they will aim to combine all online sales, including items previously sold on Tesco Direct, on Tesco.com.Source: standard.co.uk
Israel's Victory Supermarket reports record-high growth
The 1st quarter financial results reported by food retailer Victory Supermarket Chain showed continued rapid growth along with record profits of 7.4mln shekels ($2.1mln), a 13% increase over the quarter last year. The company’s operating profits for the 1st quarter were up 39% at 11.7mlnn shekels. Revenues at Victory, which has 45 locations, were 8.3% higher for the quarter at 415mln shekels, thanks to a 12% increase in the retail space that the company had compared to a year earlier and a 3.8% increase in same store revenues. Victory’s controlling shareholder, Eyal Ravid, acknowledged that 20% of the sales growth could also be attributed to the timing of Passover this year compared to last, and said that when sales at two stores that were sold to Super-Sol in May of last year are excluded, the company’s sales growth was 11.75%. Same-store sales growth, he added was the result of higher turnover at 17 Mega supermarket stores that Victory purchased in 2015 and 2016 and more moderate competition after Mega’s business as a whole was sold to Yeinot Bitan. Source: haaretz.com
Russia's VTB sells part of stake in retail chain Magnit for $1bln
Russia’s No.2 bank VTB said it had sold an 11.82% stake in food retailer Magnit worth 62.5bln roubles ($1.02 bln) to Marathon Group, which is owned by Russian businessmen. VTB said its stake in Magnit had decreased to 17.28%, adding that it still considered its investment in Magnit in February as a long-term move. Marathon Group was founded in 2017 by businessmen Alexander Vinokurov and Sergey Zakharov. “Currently, Magnit is an undervalued asset,” Vinokurov said, according to a statement from Marathon Group. He added that the investors aimed to make Magnit Russia’s top retail chain again.Source: reuters.com
South Africa: Shoprite launches mobile money platform
Retail giant Shoprite has partnered with Standard Bank, Google and global financial technology company Celbux to launch a mobile money platform for its customers. The service, called Shoprite Money, is a mobile transactional banking service available to everyone, not only those with existing bank accounts, the retailer said in a statement. “Using their Shoprite Money mobile wallet, this new service will allow customers to deposit, withdraw or send money as well as buy groceries at any of the till points in all Shoprite, Checkers, Checkers Hyper or Usave stores,” it said.Source: techcentral.co.za
Germany: City of Lüneburg launches online marketplace
The city of Lüneberg, a town in the German state of Lower Saxony, has decided to launch its own online marketplace. Customers can browse through the offer of local retailers and get the goods delivered to their homes for free. Local newspaper Landeszeitung, delivery service Lünebote and Marktplatz GmbH have launched the online project, in cooperation with local retailers. Starting next month, interested consumers can order products online from Shop-Lueneburg.de and have them delivered within a day, with no additional costs.Source: ecommercenews.eu
US: FreshDirect announces summer delivery service to the Hamptons, Montauk, and Jersey Shore
FreshDirect announced summer service to the Hamptons, Montauk, and select areas of the Jersey Shore. FreshDirect will deliver fresh, great-tasting produce, meat, seafood, and dairy, in addition to catered platters, prepared meals, and favorite grocery and household staples to the doors of residents in these delivery areas through early September. “At FreshDirect, we’re constantly evaluating ways we can better serve our customers. Through our summer service, we’re able to offer everything needed for the perfect summer in just a few clicks to ensure our customers have more time to spend with family and friends while sharing the very best food,” said PJ Oleksak, FreshDirect’s Chief Growth Officer. “Whether ordering FreshDirect to stock up your summer house, or ordering from our same-day delivery service FoodKick to hit the ground running upon arrival back to New York City, we’re proud to offer our customers a streamlined experience this summer.”Source: groceryretailonline.com
US: Kohl's beats on earnings and revenue, boosted by efforts to improve store traffic and merchandising
Kohl's reported first-quarter earnings that beat expectations on the top and bottom lines, boosted by its focus on driving foot traffic and more tightly controlling the goods it sells in its stores. "We are very pleased with our strong start to fiscal 2018 as we continued to focus on our priorities of driving traffic and operational excellence," said Michelle Gass, Kohl's incoming CEO. Shares of Kohl's were up more than 5% in premarket trading.Source: cnbc.com
US: Kroger to buy meal-kit service Home Chef for $200mln
The Kroger Co. is purchasing meal-kit service Home Chef, further accelerating the move of subscription-based, mail-order-only kits into the stores and strategies of brick-and-mortar grocers. The kits will complement Kroger’s own Prep+Pared line. Part of the Cincinnati-based grocer's own Restock Kroger strategy to modernize operations and better meet consumers needs, the deal will cost $200mln, and future earnout payments of up to $500mln over five years are contingent on achieving certain milestones, including significant growth on in-store and online meal-kit sales. Kroger decided to purchase the brand following Home Chef’s 150% growth in 2017, $250mln in revenue and two profitable quarters.Source: progressivegrocer.com
US' Target Q1: strongest traffic for over 10 years
Target’s first quarter revenue increased 3.4% to $16.8bln, with comparable store sales up 3.0%, driven by food and beverage, household essentials and home categories. This was underpinned by strong traffic, up 3.7%, the retailer’s best performance on this measure for over 10 years. This highlights how the retailer’s strategy to make Target ‘America’s easiest place to shop’ is resonating with shoppers. Digital sales continued to grow strongly, up 28% in the quarter, and up 49% on a two-year basis. The introduction of free two-day shipping in the quarter had an immediate impact on volumes. During the quarter it also launched its Drive Up service in over 250 stores and expanded Target Restock nationally. Following the acquisition of Shipt last year, it rolled out same-day delivery capabilities to more than 700 stores. However, digital fulfilment costs pressured profitability with operating income falling 9.9% to $1.0bln.Source: retailanalysis.igd.com