Metro kicks off China unit sale, likely to fetch $2bln valuation: sources
German wholesaler Metro AG has kicked off the sale of its China operations by calling for bids, in a deal that would value the business at between $1.5bln and $2bln, two people with direct knowledge of the deal said. Metro, which owns 95 stores in China and real estate assets in major cities such as Beijing and Shanghai, is planning to offload a majority stake in its China business, said the people. The sale move is part of a global reorganization of the wholesaler and comes as China’s wholesale and retail sectors are experiencing disruption from e-commerce players. Metro’s China business could yet be valued at up to $3bln, said two separate sources with direct knowledge of the matter.
Source: reuters.com
UK: Midcounties Co-operative introduces ‘One Change’ campaign
Regional co-operative retailer Midcounties Co-operative has launched a campaign to tackle the issue of single-use plastics. With its new campaign, One Change, Midcounties Co-operative aims to reduce the use of single-use plastics including plastic bags, straws, water bottles and packaging. The campaign aims to drive change through engaging members to tackle the use of these items. The strategy also aligns with the United Nations Sustainable Development Goals (SDGs) which cover responsible consumption and production, climate action and sustainable cities and communities. The retailer is encouraging its members to pledge one change they could make to tackle the impact of these plastics, for example using a carrier ‘bag for life’. Through its research for the One Change campaign, 94% of Midcounties Co-operative members researched agreed that reducing plastics usage is a high priority. As part of One Change, the retailer is also working with 50 schools and educational establishments to educate the next generation about environmental sustainability.
Source: retailanalysis.igd.com
South Africa: Watchdog demands Steinhoff produce report about fraud - CEO
South African capital markets watchdog has demanded that Steinhoff share a copy of an investigation report into the retailer’s accounting fraud, the company’s chief executive said. “The (Financial Sector Conduct Authority) has issued a summons for the production of the report. I will take legal advice and we will do what we obliged to do”, CEO Louis du Preez told journalists after briefing to lawmakers in Cape Town.
Source: af.reuters.com
Germany: Edeka plans its own organic markets
Germany’s largest food retailer, Edeka, plans its own organic markets. In the discussion are shop-in-shops in large Edeka stores, but also separate stores under the brand “Naturkind,” wrote the well-connected in the industry journal Lebensmittel Zeitung. In addition, the group also wants to expand its own brand “Edeka Bio” with seasonal up to 440 items. Organic farmers must, among other things, do without chemical synthetic pesticides, which protects nature and health. Animals must be granted them more space in the stable and outlet. But so far, only 5.5% of the food market in Germany are organic. If the largest food retailer extends the organic supply, this could increase overall organic sales.
Source: internationalsupermarketnews.com
Carrefour relies on proximity marketing in Italy
One of Europe’s largest trading companies wants to launch a new start in Italy. Carrefour announced the collaboration with JoinTag. JoinTag was founded in 2013 and relies on beacon technology. Customers include not only retailers but also museums and tourism providers. As the company has revealed in a press release, JoinTag technology is being introduced in more than 200 Carrefour stores and 40 hyper-centers in Italy. In total, Carrefour has over 1,074 outlets in Italy, including 50 Carrefour hypermarkets and 406 Carrefour supermarkets. With the proximity technology, the customers should be addressed both in the immediate vicinity and within the shops, for example, directly on the shelf. The Kariboo platform initiated by JoinTag will also be used. It combines a number of apps and is available to brand manufacturers to market their products.
Source: internationalsupermarketnews.com
Brick-and-mortar retailers narrow gap with Amazon
Amazon’s e-commerce lead is shrinking as major brick-and-mortar retailers win over more U.S. online customers for groceries and other consumer packaged goods (CPG), according to Nielsen. Over the past two years, Walmart, Kroger and Target - along with e-grocery enabler Instacart - have far outpaced Amazon in percentage growth of online CPG purchasers, Nielsen/Rakuten Intelligence e-commerce data shows. Between January 2017 and January 2019, the number of e-commerce buyers of grocery and other CPG products for Amazon rose 29%, compared with 207% for Walmart, 172% for Kroger and 122% for Target, Nielsen reported. Growth was even faster for Instacart during that time frame, soaring 256%.
Source: supermarketnews.com
US: Workers and King Soopers both want to return to negotiations, avoid strike
Company negotiators for King Soopers, City Market and their workers are hoping to return to the table to stave off a potential strike. UFCW Local 7 members authorized a strike with more than 92% voting to authorize a work stoppage. Both parties say they have sent letters asking the other to return to bargaining. Kroger, which operates King Soopers and City Market, has the largest share of grocery sales in the state, according to union President Kim Cordova. But the company offers lower wages and less valuable benefits than its competitors that are not as successful, she said.
Source: cpr.org
US: Shopko announces commencement of liquidation sale
Despite Shopko’s best efforts, the retailer announced that it would be liquidating its assets and closing all of its remaining locations by June. “This is not the outcome that we had hoped for when we started our restructuring efforts”, said Russ Steinhorst, Chief Executive Officer, in a recent press release. “We want to thank all of our teammates for their hard work and dedication during their time at Shopko.” Shopko announced in its release that it was unable to find a buyer for its go-forward business and will not be moving forward with the auction it previously contemplated. Gordon Brothers will oversee the liquidation process that is expected to conclude 10-12 weeks from now. As a result, the retailer will commence an orderly wind-down of its retail operations beginning this week—retail operations that began in Green Bay in 1962.
Source: delimarketnews.com
From Woolco to Walmart: celebrating 25 years in Canada
Walmart Canada celebrates its 25th anniversary operating in Canada, a major milestone for the world's largest retailer. Walmart opened its first Canadian stores after acquiring the 122-store Woolco division of Woolworth Canada in 1994. Since then, the retailer has built a network of 410 stores, employing more than 85,000 associates, and serving more than 1.2mln customers across the country, every day. In 2011, Walmart Canada launched its flagship online store, Walmart.ca, which is visited by more than 750,000 customers daily. "It's been 25 outstanding years for Walmart in Canada and we are thankful for the opportunity to serve Canadian families", said Lee Tappenden, president and CEO, Walmart Canada. "We have built a strong history in Canada - supporting local children's hospitals, providing disaster relief support and tackling issues like hunger and waste. We are proud to employ a diverse workforce as one of the country's largest employers and look forward to a bright future in Canada."
Source: newswire.ca
US: Price Chopper parent still seeking investors
Golub Corp. is still looking for a partner. The family-owned parent of the Price Chopper and Market 32 chains is committed to the “long haul,” chairman Neil Golub was quoted as saying last week, but he added: “In order for us to grow in this business, we need to have a partner.” Golub’s remarks came as a part of a luncheon address in Colonie, New York, last week, the Times Union newspaper reported. Spokeswoman Mona Golub told WGB this week that Neil Golub’s remarks indicate no new developments but rather a continuation of a search for investors the Schenectady, New York-based retailer has carried on since revealing plans to rebrand and modernize its store fleet behind the experiential Market 32 concept a little more than four years ago. The chain has built or converted 20 stores to the Market 32 concept since then. Plans had called for converting more than half of its 135-store fleet to the concept in five years—a $300mln investment.
Source: winsightgrocerybusiness.com
US: Kroger names Florida site for automated warehouse
The Kroger Co. said Groveland, Florida, will be the site for the next automated warehouse to be opened under its partnership with U.K. online grocer Ocado. Plans call for the 375,000-square-foot customer fulfillment center (CFC), to be located at U.S. Highway 27 and American Way in Groveland, to break ground later this year and be up and running in 2021, Kroger said. Dubbed a “shed,” the automated warehouse uses digital and robotic technology to fulfill online grocery orders. It’s expected to create more than 400 jobs in Florida’s Lake County.
Source: supermarketnews.com