The head of Carrefour’s hypermarkets in France, Alain Rabec, has said the retailer is looking to revitalise the format in the country, in an interview in national newspaper Le Figaro. The strategy will involve shrinking the stores, adding outlet departments and creating areas for bio (organic) in the retailer’s largest stores. Rabec said Carrefour was aiming to adapt 5% of the selling space in its hypermarkets, which is about 100,000 sq. m. The repurposing will see selling space adapted to new uses. One such use is an outlet department for unsold clothing, electronics and other non-food products, with 12 hypermarkets set to include an outlet area by the end of 2018. Elsewhere, Carrefour is looking to separate space for third-party brands or other of its own brands. Rabec said an example could see 1,000 sq. m of a hypermarket converted for a Promocash wholesale store.Source: retailanalysis.igd.com
UK: Asda returns to positive LFL in 2017
Asda returns to positive like-for-like growth of 0.5% and sales were up 0.8% to £309mln (exc. fuel and VAT) in the year ending 31st December 2017, according to its accounts submitted to Companies House. Asda regained a positive like-for-like performance of 0.5% (exc. fuel and VAT) in its full year results. This is a marked improvement on like-for-likes of -5.7% for the same period last year. Total sales (exc. fuel and VAT) rose 0.8% to £309mln, compared with 2016 in which the retailer experienced a decline of -4.3%. Operating profit fell -13.0% year-on-year to £735.4mln. This was impacted by investments made during the end of 2016. During 2017, Asda opened a number of new stores accounting for 146,000 sq ft of new space.Source: retailanalysis.igd.com
Poland: Eurocash Group finalises acquisition of Mila supermarkets
Eurocash Group has signed a final agreement on the acquisition of 100% of shares in Cyprus-based Domelius Limited, which controls Mila S.A. – the owner of a chain of 187 supermarkets located primarily in central Poland. The agreement was concluded after prior unconditional consent of the President of UOKiK for the takeover of the Cypriot owner of the Mila chain. The transaction is the next stage of strengthening the market position of thousands of independent entrepreneurs running retail stores in Poland. Thanks to the deal, the Group's Customers will benefit from an enhanced logistics infrastructure as well as increased purchasing scale, which will improve the competitive position of independent retail stores in Poland. Innovative solutions and experience of the acquired chain, which is classified as a modern retail format, will be available to all Customers of the Eurocash Group. Eurocash Group’s overarching strategic objective is to improve the competitiveness of Polish independent retail stores.Source: eurocash.pl
UK: SandpiperCI opens first of 16 Morrisons stores across Channel Islands
The first Morrisons store has opened in St Ouen's village. SandpiperCI announced a new franchise agreement with Morrisons in February this year, meaning that 16 Food Halls will be redeveloped. They will be opened in Jersey in the next year, with ten to open in Guernsey at a later date. The retailer says they are committed to lowering food prices by an average of 5% per shopping basket. Source: itv.com
South African Massmart: slow start to 2018
South Africa-based, Walmart-owned Massmart has released its results for the first 19 weeks of 2018. Overall its total sales growth was 0.8%, to ZAR31.4bln (US$2.5bln), with -0.5% comparable growth. This was driven by growth at its non-food banners; Massbuild, at +6.1%, and Masswarehouse, at +5.6%. The Group’s overall online sales also drove positive performance with sales rising by 66%, although from a low base. The retailer’s food business suffered the most. Overall sales across all banners contracted by 2.3%. Masscash, the wholesale food banner, saw total sales fall by 0.8%. Massdiscounters, which includes the increasingly food-focused banner Game, saw sales contract by 6.2%. Liquor sales, however, performed well, with an increase in sales of 6.9%.Source: retailanalysis.igd.com
JD.com’s freight train brings China closer to European retailers
Chinese ecommerce giant JD.com has introduced a solution for online retailers looking to sell in China. The China Railway Express is ‘faster than the sea and cheaper than air’, JD.com promises. The first freight full of JD-procured goods from Europe went from Germany to China last week. The train left the station in Hamburg and travelled ten thousand kilometers to Shaanxi. There, JD operates a major distribution hub for cross-border imports, Internet Retailing writes. The freight carried products such as food and beverages, home furnishings and automotive supplies. It’s expected many of these products will be sold on 18 June, when the company’s annual shopping festival takes place. The China Railway Express should deliver pan-European goods to China about 35 days faster compared to retailers using sea routes. Also, the train route is 80 percent cheaper than air transport, JD says.Source: ecommercenews.eu
UK supermarkets see best monthly growth since July 2013: Nielsen
British supermarkets have just enjoyed their best month in close to five years, with sales accelerating by 5%, according to Nielsen. The performance was the best non-seasonal growth in a four week period since July 2013, when a summer heatwave pushed 4-weekly industry growth to +6.7%. "This growth is well ahead of inflation, indicating that despite any underlying concerns shoppers may have around balancing the monthly household budget, they are willing to spend on food and drink,” commented Mike Watkins, Nielsen’s UK head of retailer insight.Source: esmmagazine.com
Belarus: Eurotorg recognised as most impressive debut issuer in emerging markets
Belarusian retailer Eurotorg has been named as the Most Impressive Debut Issuer in Emerging Markets, at an awards ceremony in London. The retailer, which posted a 7.1% increase in like-for-like sales in its first quarter, was presented with the honour by GlobalCapital, a news, opinion and data service covering international capital markets. Eurotorg successfully placed its debut Eurobond issue in October of 2017. “In 2017 Eurotorg, the largest grocery retailer in Belarus, became the country’s first corporate Eurobond issuer,” said Andrei Zubkou, CEO of Eurotorg. “This was an important step for our company and for the country as a whole. This award from GlobalCapital provides well-deserved recognition of our team’s hard work and highlights Belarus’ economic and investment potential.”Source: esmmagazine.com
Amazon to block Australians from using US store after new GST rules
Amazon will not ship overseas goods to Australian customers after new GST rules that target international retailers come into effect in July. Amazon’s new rule will prevent Australians from buying from the Amazon US store – or any international Amazon stores – which frequently have cheaper goods and a greater range compared with the Australian Amazon store. From 1 July this year, Australian customers who visit an international Amazon store will be redirected to the Australian site, which has been running since late last year.Source: theguardian.com
US: Sears is closing 72 stores as sales tumble
Sears is closing 72 Sears and Kmart stores. The company revealed the closures as it announced revenues dropped more than 30% for the quarter to $2.9bln. Sears previously announced a list of 166 store closures that took effect this year. Over the last several months, the company has been quietly closing additional stores, as Business Insider has previously reported.Source: businessinsider.nl
US: Peapod enhances mobile app, website for blind, visually impaired shoppers
As grocers continue building omnichannel capabilities to make shopping easier for everyone anywhere at any time, Peapod has now made sure its digital platforms are fully accessible to blind consumers. The Chicago-based ecommerce grocer’s mobile app and website now comply with regulations under the Americans With Disabilities Act (ADA), adopted into law in 1990 to ensure equal opportunities for all people with disabilities, in an effort to better serve customers with disabilities. The U.S. Department of Justice confirmed on May 11 that the retailer has fulfilled its commitment to making its consumer interfaces accessible to all consumers. For assistance with the process, Peapod enlisted My Blind Spot, a company that helps organizations integrate inclusive digital design into their culture, processes and technical infrastructures.Source: progressivegrocer.com
Lidl US halts Alabama expansion plans, pulls out of deal
While Lidl runs more than 10,000 stores in 28 countries, the grocery retailer is halting its progress into the American market. According to Decatur Daily, Lidl initially announced plans to open 100 locations in the United States by mid-2018, including its first Alabama location after purchasing 4.4 acres of property that included a 35,000-square-foot “free-standing store” in Decatur, Alabama. However, Lidl is halting its expansion plans and will no longer be purchasing that property, or any property in Alabama, according to city officials.Source: delimarketnews.com