Rewe Group appoints new CEO

UK grocery market growth steady as deflation slows

Traditional supermarkets beating Amazon in online groceries
While online-only retailers like Amazon and Fresh Direct are pushing hard to win Americans over to Web-based grocery shopping, a new study shows that conventional supermarkets are doing a better job. The research is from Brick Meets Click, and compares weekly online orders at 19 multichannel supermarket banners to online-only retailers, and finds that in more than half of the supermarkets, the average e-commerce basket is between $120 and $180. That compares to $105 for FreshDirect and $84 for Amazon Fresh.

Online shoppers view supermarkets for stock-ups
Supermarkets that also offer online shopping options are generating larger per-order online rings than their “pure-play” e-commerce counterparts, suggesting shoppers view them as “stock-up” solutions as opposed to the more-narrowly focused shopping missions served by virtual competitors, an industry consultant told SN.



UK grocery market growth steady as deflation slows

The Kantar Worldpanel data for the 12 weeks to 4 December 2016, shows GB grocery sales growth at +0.7%; more or less level with the performance reported in November. This was in spite of a further moderation in the pace of deflation, which saw prices falling by just 0.1% in this latest period, versus -0.5% in the previous period. If this current direction of travel is maintained we can expect that the return of inflation to the sector is imminent, with some categories now starting to see prices rise.

Shoppers 'spending more' on supermarkets' own-label ranges ahead of Christmas
Shoppers are expected to spend a record amount on supermarket premium own-label ranges this Christmas, against a backdrop of continuing slow growth for grocers, figures suggest. Mike Watkins, Nielsen's UK head of retailer and business insight, said: "After a strong start to November, shoppers' seemed to have held back on food spend in the last few weeks, despite some of the very attractive Christmas offers and price reductions. "However, we expect momentum to pick up again and the week ending Christmas Eve will be a massive opportunity for the big four supermarkets to regain market share."

Rewe Group appoints new CEO
Rewe has announced Lionel Souque is to become its next CEO. Current CEO, Alain Caparros is due to retire at the end of 2018, at which point Mr Souque will take over as Group CEO. Mr Caparros has been CEO of the company since 2006 and has worked at Rewe since 2003, when the Bon Appetit Group in Switzerland, of which he was CEO, was acquired by Rewe. Mr Souque will bring valuable experience to the job of CEO, having joined the Rewe Group in 1996. He previously led the group's full range division and digital business. In 2017, he will become head of Rewe Group Germany and will be responsible for both Rewe and Penny ahead of his move to CEO.

Carrefour has started search for Plassat's successor
Carrefour has started searching for a successor to its chairman and chief executive Georges Plassat, whose mandate at the helm of Europe's largest retailer expires in May 2018, sources said on Tuesday. At the May 2016 AGM Plassat said he was going to prepare his succession.

Argos's Christmas deliveries face driver strike threat
Christmas deliveries from British retailer Argos could be disrupted by a strike over a pay dispute by drivers at one of its main distribution centres, trade union Unite said on Tuesday. The drivers, who work for UK logistics firm Wincanton (WIN.L) based at Argos's distribution centre at Barton-under-Needwood in central England, will strike for three days from 0001 GMT on Dec. 20. The union's dispute with Wincanton centres on how holiday pay is calculated. It said management had offered to backdate the holiday pay from April this year, while Unite says the pay should cover at least the last two years.

Colruyt beats expectations as it hikes prices and grows market share
Belgian supermarket group Colruyt (COLR.BR) on Tuesday reported a higher-than-expected net profit for its first half year as it was able to increase prices and expanded its market share in Belgium. The group, which competes with Ahold Delhaize (AD.AS) and Carrefour (CARR.PA) as well as German discounters, Aldi and Lidl, said that while competition remained high, it was less fierce than in previous years, allowing it to pass on higher prices. Colruyt's market share in its Belgian home market grew by 0.19 percentage points to 31.8 percent in the first half. Net profit rose 5.5 percent in the first half of its financial year, until March 31, to 192.5 million euros (161.38 million pound), above the 188 million euros expected on average in a Reuters poll of four analysts. The group repeated that it expected its net profit in the current financial year to match or slightly exceed last year's of 366.3 million euros.

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