US: 7-Eleven opening six test stores to try out new concepts
7-Eleven Inc. plans to grow its footprint by first testing a new store concept. The convenience retailer welcomed customers at a new Dallas-area convenience store on Sylvan Avenue at Interstate 30. The location is the first of six new test stores the company plans to open around the United States, according to the Oak Cliff Advocate. The latest 7-Eleven opened March 4 and features a Laredo Taco Co. restaurant, and a café serving coffee drinks, made-to-order smoothies and shakes, among other beverage offerings. According to the news report, 7-Eleven will use the concept stores to develop brands and ideas. Another Texas concept store is slated to open in Prosper.
Source: csnews.com
US: Simplifying assortment one of the keys to Walmart grocery growth
Simplifying assortment and thoughtful, strategic pricing have helped drive the grocery business at Walmart Stores, Inc., but more work is needed, says Gregory S. Foran, president and chief executive officer of Walmart U.S. “I get out to the stores every single week”, Foran told participants at the UBS Global Consumer and Retail Conference on March 6 in Boston. “About half the time I’m okay with it, and the other half, I’m grumpy.” One area of improvement for Bentonville, Arkansas-based Walmart has been the simplification of its product assortment. Using Ritz crackers as an example, Foran described a scenario that used to include upwards of nine different variants of Ritz Original crackers, ranging from single packs to double packs to flat packs to bonus packs. Eventually it reached a point where Foran said the retailer needed to address the question of “What are we doing here?” As a result, Walmart has simplified the assortment.
Source: supermarketperimeter.com
US: Hy-Vee halts plans for Austin, Minnesota, distribution center
After more than a year of speculation and much anticipation leading up to a prospective 2019 groundbreaking for a reported more-than-1mln-square-foot distribution facility, retailer Hy-Vee has recently confirmed that it will be not be building a facility in Austin, Minnesota; the project has, for now, been cancelled. According to local news source the Austin Daily Herald, citing a press release from City Administrator Craig Clark, the project has been suspended due to changing priorities within the company. “We are stepping away from the project at this time, but not saying that we won’t ever revisit the facility in Austin”, Hy-Vee’s Assistant Vice President Pete Hosch stated.
Source: delimarketnews.com
Amazon purges suppliers in push to boost e-commerce profits
Amazon.com Inc. abruptly stopped buying products over the past two weeks from many of its wholesale vendors, encouraging them to instead sell their products directly to consumers on Amazon’s marketplace. It’s the company’s latest move to boost profits at the core e-commerce business, even if that means disrupting relationships with longtime suppliers and potentially limiting customer choice. Thousands of vendors are affected, according to estimates from consultants who help clients sell on Amazon. Pushing suppliers onto the marketplace - rather than selling products itself - lets Amazon offload the risk and cost of purchasing, storing and shipping the merchandise. Instead, the company can charge suppliers for these services and take a commission on each transaction, which is much more profitable. The strategy is part of a larger effort to reduce overhead by getting more suppliers to use an automated self-service system that requires no input from Amazon managers.
Source: mhlnews.com
Aldi opened 51 stores in its first year in Italy
Discounter Aldi opened 51 stores in six different regions in northern Italy during its first 12 months of operation in the country. The German discounter has hired more than 750 workers for its 51 stores, as well as over 300 in the operational headquarters and 230 across its logistics operations. In a statement, Aldi Italia said that it guarantees equal job opportunities to men and women and its actions are in line with Aldi's commitment to social responsibility and inclusion, as well as to multiculturalism. According to Michael Veiser, group managing director of Aldi, the German retailer is "very proud" of its results in Italy and wants to strengthen its presence in 2019, opening new stores in keeping with a structured and organic growth plan. Aldi Italia is present in the Emilia-Romagna, Friuli-Venezia Giulia, Lombardy, Piedmont, Trentino-Alto Adige and Veneto regions.
Source: esmmagazine.com
Auchan expands partnership with OMV for MyAuchan banner in Romania
Auchan and OMV have signed a Memorandum of Understanding (MoU) that could lead to the expansion of their partnership. If carried through the MoU could lead to the addition of further MyAuchan stores on the latter’s forecourts. The two companies have been working together since 2017, when the trial of 15 MyAuchan stores on OMV’s forecourts began. The stores were opened in both urban and rural areas to enable the two to test the effectiveness of the business model. Commenting on the results, OMV’s directorate for downstream oil, Radu-Sorin Caprau, said: “The results so far are encouraging, and we are happy to negotiate the expansion of the partnership and have more MyAuchan proximity stores on our Petrom stations. This association aims to add more substance to the promise of the Petrom brand, with MyAuchan stores perfectly complementing Petrom’s classic benefits: affordable, efficient fuels and stations anytime…”
Source: retailanalysis.igd.com
China: Sun Art profit fell in 2018
China’s major hypermarket operator Sun Art Retail Group Ltd, set up by Auchan and Ruentex and backed up by Alibaba, reported a 7.3% fall in 2018 profit. The retailer reported its net profit fell to 2.59bln yuan (US$386mln) from 2.79bln (US$386mln). This was below the expected 2.70bn yuan. Turnover fell by 2.9% to 99.36bln yuan and same-store sales fell 1.72% year-on-year. The group’s gross profit margin increased by 1.2 percentage point from last year to 25.3%. The company, operating under the “RT-Mart” and “Auchan” banners, says that the competition is fierce including online. "2018 was a year where the digitalization of our retail business began, and also a year to plan future development", the company said in a statement. "Through digital management, supply will be closely tied with demand to provide customers with the right product offering, good prices..." Just one day after publishing its 2018 results, Sun Art announced plan to open 25 more stores in China this year, aiming to return to positive growth in 2019.
Source: retailanalysis.igd.com
Germany: Retail sales rebound tops expectations; biggest in over 2 years
German retail sales grew at a stronger-than-expected pace in January, entirely reversing a steep decline in the previous month, to log the biggest growth in over two years, preliminary data from the Federal Statistical Office showed. Retail sales rose 3.3% month-on-month, which was much faster than the 1.90% gain economists had predicted.
Source: markets.businessinsider.com
France: Les Mousquetaires reports strong growth in FY2018
France-based Les Mousquetaires said its total sales rose 5.9%, excluding fuel, and by 7.7%, including fuel, across its operations in Europe. The organisation was able to report a positive performance at all its divisions, with its retail brands generating sales of €40.5bln, including fuel, and its agribusiness division producing €4.0bln. Les Mousquetaires said its Intermarché and Netto banners generated a combined turnover of €27.0bln, excluding fuel, and €36.5bln, including fuel. In its home market, Les Mousquetaires said Intermarché enjoyed sales growth of 2.9%, to €23.06bln, excluding fuel, and €31.5bln, including fuel. Les Mousquetaires said 2018’s performance outstripped that for the two preceding years: sales rose 1.3% in 2016 and 1.7% in 2017. The organisation said the pace of sales growth had enabled it to gain market share and underlined the positive effect of its transformation programme. The initiative has put a greater focus on helping shoppers to eat better and how goods are produced better. At Netto sales rose 1.9% to €1.1bln, excluding fuel, and €1.27bln, including fuel. The pace of sales growth at Netto was the same in 2018 as versus 2017, but lower than that it enjoyed in 2016, at 3.9%. Les Mousquetaires said Netto’s performance had been boosted by shoppers’ search for value.
Source: retailanalysis.igd.com
FreshStop opens 300th store in South Africa
The fastest growing franchise convenience store retail brand in South Africa, FreshStop, opened its 300th store at 928 King Cetshwayo Highway in Sherwood, Durban. Freshstop at Caltex 45th Cutting in Sherwood is so named after the Sherwood Foresters, a nickname attributed to the 45th Regiment of Foot of the British Army, stationed here during the middle of the 19th century. The cutting through a hill, valiantly carried out with pick and shovel for which they were responsible, is still called ’45th cutting’ to this day. FreshStop at Caltex continues to lead the industry in innovation and this store features a few of the in-house food brands that have become popular. In addition to FreshStop 45th Cutting’s range of fresh fruit and vegetables, selection of grocery items and Pitstop Café for hot takeaway meals, there are Hooked On fish & chips and Grill to Go outlets as well as a Seattle Coffee Bar with barista service. The store also has a larger than normal Grab n Go section for the on-the-go customer wanting a quick pasta, salad, wrap or sandwich; and a FreshStop Diner, the first of its kind in KwaZulu-Natal, which has the look and feel of a modern American diner and offers customers free wifi and power point sockets.
Source: retailtimes.co.uk
UK: 86% of Brits are Amazon shoppers
Amazon is very popular in the United Kingdom. Recent research shows that almost nine in ten Brits are Amazon shoppers. And last year, more people have increased their shopping with Amazon than decreased it. Seven in ten Amazon users in the UK buy from the ecommerce giant at least once a month. This is shown by new research from Mintel. Over the past year, 21% of current Amazon shoppers have increased their shopping with Amazon, while only 13% decreased it. Overall, most of the Amazon customers in the United Kingdom shop with the ecommerce giant at least once a month, while 17% use the retailer weekly.
Source: ecommercenews.eu
Germany: Edeka launches 'Schön von innen und außen' campaign
German retailer Edeka has announced the launch of a new campaign, Schön von innen und außen (Beautiful inside and out), that amalgamates the retailer's expertise in the food sector with a diverse range of products offered by its drugstore channel. The campaign is based on the idea that a balanced diet and the appropriate personal care products have a positive influence on an individual's well-being, self-esteem, and appearance. The year-long campaign will revolve around product offers, tips and recipes related to beauty and nutrition, which will be shared on the retailer's social media channels and website.
Source: esmmagazine.com
Spar Natural to expand presence in South Africa
Spar South Africa has announced that it will integrate the retail group's health and wellbeing concept - Spar Natural - in more stores across the country. The move is a part of the group's plan to address the growing demand for health and wellness products. It offers customers easy access to niche products, which were previously only available in specialised health stores and pharmacies. In June of last year, Spar South Africa began the process of integrating the concept as a shop-in-shop category in its stores. Presently, the concept is featured in 30 Spar outlets in South Africa, spread across six regions.
Source: esmmagazine.com
"Yellow Vests" protests in France prove costly for retailer Auchan
French supermarket group Auchan’s 2018 profits suffered a blow from the country’s anti-government “Yellow Vests” protests, costing the retailer 140mln euros ($157mln) in lost revenue. Auchan also faces fierce price pressure in its home market from the likes of Carrefour and Leclerc as well as competition from Amazon. A tough market hit its results in Italy too and in Asia where its Sun Art Retail subsidiary faces online competition. Earnings before interest, tax, depreciation and amortisation (EBITDA) at Auchan Retail slumped 20.5% to 1.518bln euros in 2018 at current exchange rates. Total revenue at Auchan Retail was 50.3bln euros, representing a 3.3% decrease at current exchange rates. Revenue in France alone fell 1.3%, with the “Yellow Vests” protests knocking 140mln euros off revenue and 35mln euros off EBITDA.
Source: reuters.com