Russia: Lenta sees like-for-like sales up 2.1% in Q4
Russian retailer Lenta has posted a 2.1% increase in like-for-like sales in the fourth quarter of its financial year, with the business posting sales of RUB 119.5bln (€1.59bln) for the period. The like-for-like sales increase was driven by a 2.1% gain in basket value and a 0.0% increase in traffic. Total sales were up 6.6% in the period. The group opened a net new 11 hypermarkets and 14 supermarkets in the quarter, leaving it with 379 stores as of year-end, including 244 hypermarkets and 135 supermarkets.
Source: esmmagazine.com
Indonesia minimarket growth to outpace large retailers: Fitch Ratings
Large retailers, such as supermarkets and hypermarkets, will likely continue to experience subdued growth in 2019, which will benefit minimarket operators, Fitch Ratings says. “The shift in customers' preference toward shopping in smaller quantities has heightened competition. The trend has hurt the growth of hypermarkets and supermarkets”, Fitch said in a press release. PT Matahari Putra Prima (Hypermart) has reported top-line contraction since 2016. Its revenue fell 13.8% year-on-year (yoy) in the first nine months of 2018 after declines of 7.1% in 2017 and 2% in 2016, in line with a reduction in the number of its stores by 19.3% yoy in the first nine months of 2018 and 13.4% in 2017. PT Hero Supermarket’s (HERO) revenue declined 6% yoy in the first nine months of 2018 and 7% in both 2016 and 2017, excluding its non-food retail business.
Source: thejakartapost.com
METRO leverages Zilliant IQ platform in Turkey
Zilliant, a multi-tenant SaaS company that helps B2B enterprises turn data into actionable intelligence to accelerate profitable growth, announced that METRO, a leading international specialist in food wholesale and retail, will implement and utilize the Zilliant Price IQ platform in Turkey. "We believe that Zilliant is the right partner to support our ambitious growth plans", said METRO Cash & Carry Foodservice Director Deniz Alkaḉ. "They are uniquely positioned to deliver optimized pricing guidance in both our Cash & Carry and Foodservice Delivery (FSD) businesses."
Source: prnewswire.com
Romania’s e-commerce up 30% in 2018
The volume of online sales of goods in Romania increased by 30% in 2018 compared to 2017, to EUR 3.5bln, the equivalent of EUR 10mln per day, according to calculations compiled by GPeC based on data supplied by major local online retailers. The growth rate was among the highest in Europe for the second year in a row, witnessing market’s robust growth potential, GPeC founder and CEO Andrei Radu commented.
Source: romania-insider.com
Australia: Coles' $146mln provision for centre upgrades
Coles will make a $146mln pre-tax provision in its first-half results as part of a distribution network overhaul that will cut both costs and jobs. The supermarket giant, which was spun out of Wesfarmers and listed on the ASX in November, said it has signed contracts with the local subsidiary of German-owned logistics firm Witron to develop two new automated ambient distribution centres. The centres - one in Redbank, south west Brisbane, and the other in Kemps Creek, western Sydney - will replace three existing dry goods facilities in NSW and two in Queensland.
Source: news.com.au
Russia: Dixy Group to merge with competitors: reports
Russian retailer Dixy Group is to merge with the Krasnoye&Beloye and Bristol chains, to create a new retail conglomerate, according to reports. Russian daily Kommersant said that the deal will see Sergey Studennikov, who operates Krasnoye&Beloye, acquire a 49% stake in the combined business, while Igor Kesayev and Sergey Katsiyev, who operate the Dixy and Bristol chains respectively, will acquire 51%. According to Kommersant, transaction details relating to the deal are not available at present. The combined entity will be the third largest in Russia, with more than 13,000 stores, behind X5 Retail Group and Magnit.
Source: esmmagazine.com
Lidl announces changes to fop management in Portugal
Lidl Portugal has named Alexander Frech as its new CEO, effective March 2019. Frech is an industry veteran, and has been a part of the Schwarz Group for ten years. Previously, he was responsible for the company's logistics division, and played an important role in consolidating a global vision for the business at an international level. Lidl Portugal will continue with its strategy to invest and expand business in the country, where it has more than 250 stores, four warehouses, and a workforce of more than 6,500 people.
Source: esmmagazine.com
JD.com making history in Indonesia
The retailer completed Indonesia’s first government approved drone flight, a breakthrough for drone delivery in Southeast Asia. The test flight took place on 8th January 2019, in West Java, Indonesia. It is a joint project between JD.com, the World Economic Forum (WEF) and the Indonesian government. The news of JD.com’s breakthrough was announced at the WEF’s annual meeting. The drone delivered backpacks and books to MIS Nurul Falah Leles Elementary School in Jagabita Village, Parung Panjang, Indonesia. Villages like Jagabita are typically difficult to reach using conventional on-the-ground transportations because of the treacherous road conditions. Drone technology provides an effective and efficient means to reach these villages for the first time.
Source: retailanalysis.igd.com
Russia: Х5 Retail Group reports 18.5% net retail sales growth in 2018
X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer, announces the Company's preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 2018. FY 2018 Highlights: Total net retail sales growth remained strong at 18.5% y-o-y, driven by: 1.5% increase in like-for-like (LFL) sales; and 17.0% sales growth contribution from an 18.0% rise in selling space. Net retail sales for X5’s core formats Pyaterochka and Perekrestok increased by 19.7% and 23.5% y-o-y, respectively, and grew by 1.7% y-o-y at Karusel. X5’s LFL sales and traffic growth remained positive at 1.5% and 0.9% y-o-y, respectively, in 2018. LFL sales and traffic were positive for both core formats Pyaterochka and Perekrestok. X5 added 2,310 net new stores in 2018, contributing to an additional 984.0 th. sq. m. of net selling space. Net selling space growth decelerated from 27.4% y-o-y in 2017 to 18.0% y-o-y in 2018. Q4 2018 Highlights: Total net retail sales growth remained strong at 17.1% y-o-y, driven by: 3.7% increase in LFL sales; and 13.4% sales growth contribution from an 18.0% rise in selling space. Net retail sales for X5’s core formats Pyaterochka and Perekrestok increased by 18.1% and 23.0% y-o-y, respectively, and grew by 0.5% y-o-y at Karusel. X5’s LFL sales and traffic growth accelerated q-o-q to 3.7% and 2.2% y-o-y, respectively. X5’s LFL basket growth in Q4 2018 was positive on the back of increasing food inflation. X5 added 746 net new stores in Q4 2018, contributing to an additional 308.7 th. sq. m of net selling space in the quarter.
Source: x5.ru
US: Grocers rank among Fortune’s World’s Most Admired Companies
Publix Super Markets has once again been named one of the World’s Most Admired Companies by Fortune magazine, ranking No. 2 in the food and drug stores industry category - the highest of any mainstream supermarket operator. The Lakeland, Florida-based grocer also came in 45th in the publication’s top 50 all-star ranking. Last year, Publix came in first in the industry ranking; this year, it swapped places with Deerfield, Illinois-based drug store chain Walgreens Boots Alliance. Rounding out the top five food and drug stores were Phoenix-based Sprouts Farmers Market, at No. 3; Cincinnati-based Kroger, at No. 4; and Zaandam, Netherlands-based Royal Ahold Delhaize, parent company of Ahold Delhaize USA, at No. 5.
Source: progressivegrocer.com
US: Albertsons joins the Microsoft train
Albertsons has become the latest US retailer to partner with Microsoft, following deals struck with Walgreens, Kroger and Walmart. Albertsons and Microsoft have signed a three-year deal for the retailer to use Microsoft’s Azure cloud service. This will enable Albertsons to tap into Microsoft’s AI capabilities and help it move towards developing a checkout-free store.
Source: retailanalysis.igd.com
US: Walmart's Illinois truck drivers to receive pay rises
Walmart is investing in its Illinois drivers' wages, allowing them to receive up to $1 every time they arrive at their destination and drop a trailer. Beginning next month, drivers for the Bentonville, Arkansas-based mega-retailer will receive a per-mile increase of 1 cent and a 50-cent increase in activity pay and arrive/drop occurrences. With the increase, Walmart drivers can earn an average of $87,500 in their first year of employment, with an all-in rate of nearly 89 cents per mile. "Truck drivers are a critical part of our team here at Walmart and have been since Sam Walton started the private truck fleet in the 1970s", said Greg Smith, EVP of of Walmart U.S. supply chain. "Our professional drivers are part of what makes Walmart so special. This wage increase reflects the importance of our private fleet and our commitment to recruiting and retaining the best drivers in the industry."
Source: progressivegrocer.com