US: Omnichannel retail sales for FMCG hits $1tln
Through a new, exclusive agreement using Rakuten Intelligence’s consumer sourced panel - the largest e-commerce panel in the world, with 5.5mln consumers - Nielsen revealed data yesterday showing that total omnichannel sales for fast-moving consumer goods (FMCG) products alone have hit $1tln in 2018. According to Nielsen and Rakuten Intelligence, online grocers saw over $21.6bln in sales over the past three years, reaching 88% higher than the 2017 figure at nearly $11.9bln. While that represents 26% of online FMCG sales, it’s a drop in the ocean compared to in-store grocery store sales, which amassed $413bln this year.
US: Giant unveils new urban format Heirloom Market
Ahold Delhaize’s Giant Food Stores banner is introducing a new store concept for urban neighborhoods to be known as Giant Heirloom Market. Officials of the Carlisle, Pennsylvania-based brand revealed details of the new store at a press event in Center City Philadelphia, where the first unit is under construction in the Graduate Hospital neighborhood at Second and Bainbridge streets and is expected to open before the end of the year. The location was previously speculated to have been a planned site for BFresh, a format introduced in Boston by Ahold’s since-dissolved Fresh Formats team in 2015 and now run by Giant’s sister banner Stop & Shop. Although Giant has had a presence in Philadelphia since opening its Grant Avenue store in 2011, Heirloom Market will be its first downtown location. Officials said additional locations are also on the way.
Amazon now owns one-third of online grocery spending
By the start of the summer, Amazon had captured almost one-third (30%) of online grocery spending in the United States, according to new research from Barrington, Illinois-based retail consultancy Brick Meets Click. According to the research, which is based on a consumer survey of 4,855 grocery shoppers age 18 and above, no other company even comes close to Amazon's dominant position relative to online grocery retail - when aggregated, the supermarket channel captures roughly an equivalent market share.
US: Aldi opens new $57mln distribution facility in Petersburg, Virginia
Aldi recently opened a new state-of-the-art distribution center and division headquarters in Dinwiddie, Virginia, as part of the retailer’s continued expansion in the Chesapeake-area and throughout the South. The $57mln project was first announced two years ago. The 562,500-square-foot facility will service 70 to 80 Aldi stores in the Richmond-Petersburg, Hampton Roads, and eastern North Carolina regions. It sits on an 80 acre parcel purchased for $3.6mln in 2017, according to local news source RichmondBizSense.
Real Canadian Superstore: same-day grocery delivery service with Instacart in Winnipeg
Real Canadian Superstore announced an expansion into Winnipeg to bring home delivery to close to 200,000 households. Winnipeg residents can now order their favorite brands from Real Canadian Superstore and have their groceries and everyday essentials delivered by Instacart straight to their doorsteps in as little as one hour. "We are a customer-led company and are always looking for new ways to make shopping more convenient," said Herman Paek, Senior Vice President, ecommerce, Loblaw. "The option of home delivery complements our in-store and pick up experiences, to provide our customers with convenience and quality, however they want to shop with us."
US: Costco Wholesale Corporation Q4 income rises
Costco Wholesale Corporation announced a profit for its fourth quarter that rose from the same period last year. The company's profit came in at $1.04bln, or $2.36 per share. This compares with $0.92bln, or $2.08 per share, in last year's fourth quarter. Analysts had expected the company to earn $2.36 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. The company's revenue for the quarter rose 5.0% to $44.41bln from $42.30bln last year.
US: Stop & Shop reveals updated store format
The Stop & Shop Supermarket Co. has taken the wraps off a brand-new look for its stores, beginning with 21 locations in the Hartford, Connecticut area. The overhaul comes after parent company Ahold Delhaize USA this past summer promised a “fresh new format” for the venerable northeastern regional banner. The company invested $70mln to improve Stop & Shop’s in-store experience, with a focus on providing more fresh, fast, local and healthy selections.
Russian food retailer X5 Retail opens distribution centre in Yaroslavl
Russian food retailer X5 Retail Group has opened a new 34,000ft² distribution centre (DC) in Yaroslavl. The facility will serve more than 500 Pyaterochka stores of the company located in Yaroslavl, Arkhangelsk, Vologda, Ivanovo and Kostroma regions. It will be used to handle and store products from over 500 suppliers, as well as assist local suppliers to increase their sales, transport products to other regions and reduce delivery costs. The facility will also feature six separate temperature zones to store products of any category.
Retail sales record significant slowdown in Romania in August
The retail trade turnover in Romania increased by 1.5% in August compared to the same month of 2017, in gross terms, and by 1.7% in seasonally adjusted terms, according to data from the National Statistics Institute (INS). The growth rate was significantly lower compared to the previous month, when retail sales increased by 5.3% in gross terms (5% in seasonally adjusted terms) compared to July 2017. The slowdown was mainly due to an 8.3% drop in fuel sales. The sales of food, beverages and tobacco increased by 6.1% while non-food sales went up by 3.8% over August 2017.
France: Casino Group unveils new ‘Le 4 Casino’ concept store in Paris
Casino Group has launched ‘Le 4 Casino’, a new concept store on Paris’ Champs-Elysées, alongside distributor Prodistribution. The store has been described as a place where ‘digital enriches and facilitates the daily life of customers’, and features a large selection of Casino own-brand products, a deli, a range of organic and vegan products and a CDiscount showroom, among its many features. Visitors to the store will be able to conduct their shopping without visiting a cash register, as well as avail of services that enable them to use in-store interfaces to avail of an extended range of products. It also features an augmented reality experience, visible from the street, to enhance the customer experience in-store.
Australia's Wesfarmers in no hurry for deals after Coles spinoff
Australian conglomerate Wesfarmers Ltd said the capital it frees from spinning out its low-growth supermarket division, Coles, will be first used to improve existing businesses before it makes acquisitions or buys back stock. In the first detailed financial statement about the demerger, Wesfarmers put the one-time cost to spin off Coles at A$148mln ($104mln) but the disclosure also buttressed Wesfarmers’ rationale for shedding the grocer to seek fatter margins elsewhere.