Middle East supermarket chain LuLu Group International is all set to launch this week its first warehouse facility in the Philippines. May Export Philippines, the local unit of LuLu, will be inaugurating Warehouse No.1 at Calamba Premiere International Park in Calamba, Laguna on Wednesday. The logistics facility will process and handle dry food, non-food, frozen, and perishable food products. Philippine Economic Zone Authority (PEZA) Director General Charito Plaza confirmed to the Philippine News Agency Monday that the investment promotion agency has approved the investment project of LuLu Group.Source: pna.gov.ph
Singapore: Sheng Siong Q2 net profit up 6.4% to S$17.1mln
Supermarket chain Sheng Siong Group's net profit grew 6.4% to S$17.1mln for the second quarter ended June 30, up from S$16.1mln in the year-ago period, the group announced. This was on the back of a 5.7% rise in revenue to S$213mln, mainly contributed by the opening of new stores - four in the first quarter and three in the last five months of FY 2017 - and comparable sales from existing stores. As at June 30, Sheng Siong had 48 stores in Singapore and one in China, compared to 42 in Singapore a year before. The opening of two new stores in Bukit Batok and Yishun on July 13 has since taken the number of Singapore stores to 50.Source: businesstimes.com.sg
Russia: Okey Group continues sales decline with supermarket disposal
Okey reported a year-on-year sales fall of 8.7% to reach RUB88,068mln (€1,270mln), a weak result when compared to the same period in 2017 when it grew by 2.7%. The retailer’s like-for-like sales growth continued to be negative at -2.5% in 2018, compared to -2.3% last year. The retailer attributed the decline in the year-on-year performance to the sale of its supermarkets in St Petersburg to X5. Excluding the supermarket disposal, Okey reported a 2.5% decline in year-on-year sales because of food deflation and strong competition in its key trading areas, such as St Petersburg and Moscow.Source: retailanalysis.igd.com
Europe: Carrefour, Tesco seal purchasing deal
Carrefour and Tesco, two of Europe’s largest retailers, said on Monday they had finalised a purchasing alliance to increase their leverage with suppliers in the fiercely competitive supermarket sector. The French and British supermarket giants said in a joint statement that they expect the alliance to become operational in October. Tesco chief executive Dave Lewis said in June when the plan was announced that the alliance would enable the supermarket chains to “serve our customers even better, further improving choice, quality and value.”Source: gulfnews.com
Russia: Lenta outperforming its competitors
Lenta’s sales grew by 18.2% to RUB193,200mln (€2,631mln). Its like-for-like sales growth increased to 4.8%, in contrast to the negative like-for-like sales performance of 1.8% in H1 2017. This was attributed to an increase of new shoppers in the hypermarket format and a rise in frequency of visits to its supermarkets. Also, the retailer offered options for shoppers to trade up within a category, such as soft drinks, to encourage spend on higher price point products like 100% juice or nectar beverage. This helped increase basket spend and offset the impact of food price deflation.Source: retailanalysis.igd.com
Spar Spain invests in store network with new, refurbished stores
Spar Spain has broadened its retail offering in the country over the last few months, opening multiple new stores and sinking funds into renovating two existing supermarkets. Between April and June of 2018, Spar Spain added 2,800 square metres to its selling space, due to the work of five partners on the islands and the mainland. These new 'state-of-the-art' supermarkets meet 'the diverse needs of both local and foreign shoppers', the company said.Source: esmmagazine.com
Belarus' Eurotorg announces €20mln loan with EBRD
Eurotorg, Belarus' biggest retailer, has announced a €20mln loan agreement with the European Bank for Reconstruction and Development (EBRD). The loan will enable Eurotorg to reduce its average cost of debt and extend its repayment schedule, and is part of the company's ongoing drive to optimise its debt profile. “This agreement with one of the world’s leading international financial institutions once again underscores Eurotorg’s strong standing as a high-quality borrower with a robust strategy, efficient business model and significant potential for future growth," said Andrey Zubkou, CEO of Eurotorg.Source: esmmagazine.com
US: Holiday timing dings Weis’ Q2 sales
The timing of two key holidays made a dent in sales at Weis Markets Inc. during the second quarter of its fiscal 2018, which ended June 30. The grocer posted Q2 sales of $871.1mln, versus $876.6mln for the year-ago period. The grocer’s Q2 net income rose 3.4% to $19.1mln, compared with $18.5mln, last year, while Q2 earnings per share edged up 2 cents to 71 cents per share.Source: progressivegrocer.com
US: Supervalu reports first quarter fiscal 2019 results
Supervalu Inc. reported financial results for its first quarter ended June 16, 2018: Consolidated net sales of $4.76bln increased $1.24bln, or 35%, including $1.34bln from Unified Grocers and AG Florida. Wholesale net sales of $3.81bln increased $1.26bln, or 49%. Retail identical store sales of positive 0.4%. Net loss of $27mln compared to net earnings of $9mln last year. Adjusted net loss of $7mln compared to adjusted net earnings of $21mln last year. Adjusted EBITDA of $98mln compared to Adjusted EBITDA of $118mln last year. Total outstanding net debt, including capital leases, of $1.56bln, a reduction of $305mln since the end of fiscal 2018.Source: marketwatch.com
US: Advent International closes Walmart Brazil acquisition
Advent International, a US private equity firm, has announced it has finalised the 80% buyout of Walmart Brazil it announced in June of this year. For a decade, Brazil been the focus of expansion for Walmart, but the unit has stumbled in recent years as operational issues have compounded the effects of a deep recession, leading the Bentonville-based retailer to offload its underperforming operations in Brazil and refocus on markets like China and India. Though the value of the transaction is still undisclosed, Walmart has said it would record a non-cash charge of roughly $4.5bln related to the deal in the second quarter. Walmart still holds a 20% stake in the Advent-owned Walmart Brazil.Source: esmmagazine.com