Philippines: Metro Retail profit slips
Metro Retail Philippines has reported a 1.2% decline in net income for last year. The Gaisano family business takings took a fall from 2017’s PHP977mln (US$18.6mln) to PHP965.4mln ($18.35mln) last year, attributed to a hypermarket closure and a temporary supermarket closure following a fire, amongst other factors. Net sales were also hit with a drop from PHP35bln ($665.2mln) to PHP33bln ($627.2mln) last year. More favourably, the group’s cost of sales fell 6.5% to PHP25.65mln ($487,452) following a gross margin improvement. “The margin improvement was driven by a well-executed enhancement plan that included among others, negotiation with suppliers and rationalisation of unprofitable sales to resellers”, said a spokesperson for the firm. Metro had 53 department stores, hypermarkets and supermarkets throughout the Philippines at the end of last year.
Source: insideretail.asia
France: The Auchan App triples the number of customer reviews
Customer Reviews are a key topic for e-merchants. When a product reaches 50 reviews, its sales increase by an average of 30%, says Bazaarvoice, a world leader in customer opinion management, which manages the Auchan drive site. The distributor has just wanted to boost the number of reviews on some targeted references and has to do this together with Budgetbox (La Poste Group).
Source: internationalsupermarketnews.com
UK: Tesco ends its one-hour delivery service
Tesco has ended its one-hour delivery service available to customers in London. The delivery service, Tesco Now, launched in May 2017 and offered one-hour delivery to customers in central London. Shoppers were able to order, via the Tesco Now app, up to 20 items from a range of 1000 products. For the service, Tesco partnered with courier firm Quiqup to deliver the orders, potentially demonstrating the difficulty of working with third parties. Using third parties to pick and deliver products may reduce costs and provide a quicker launch, but it can impact on customer service. Other retailers including Waitrose and Co-op are working with third parties for their own rapid delivery services, whilst Sainsbury’s manages its own in-house. Tesco ended the service in November, and has said that it will now focus on scheduled same-day delivery instead.
Source: retailanalysis.igd.com
Germany: Rewe wants to make purchases faster for customers
The trend towards self-service is becoming increasingly popular in Europe’s supermarkets. Now Rewe also wants to offer its customers a new shopping experience: the payment process at the cash register should be designed faster in the future. In the future, customers should be able to scan their own products, including using their smartphone. The pilot project will be launched in a Rewe branch in Cologne-Rodenkirchen. There will be tested how the self-scanning is accepted by the German customers. Instead of putting the goods on the line as at a conventional cash register, customers can scan the products on special devices provided by the market as well as on their smartphones. For use, customers must download the Smart Shopping app and register with their Payback account. Subsequently, a QR code must be scanned at the beginning of the shopping at the entrance of the market. If an article is scanned too much, it can be removed from the shopping basket by clicking on a “minus” symbol. Lastly, you can pay at a self-service checkout or cashier.
Source: internationalsupermarketnews.com
Russia: Lenta says TPG in talks with Severgroup over sale of stake
Russian food retailer Lenta Ltd says: The company is aware of ongoing discussions between Luna Inc, which is beneficially owned by the TPG Group, and Severgroup LLC regarding a possible sale of Luna Inc’s 34.13% shareholding in Lenta to Severgroup. Lenta understands that no such sale has yet been agreed between Luna Inc and Severgroup. Any such sale could only be carried out in accordance with Lenta’s memorandum and articles of association, which require Severgroup to launch a mandatory tender offer to all shareholders/GDR-holders in connection with any such sale. At this stage there is no certainty whether a transaction will occur.
Source: uk.reuters.com
Kenya: Shoprite faces stiff competition with planned expansion in Nairobi
Popular South African retail store Shoprite has launched another outlet in Nairobi, following the establishment of its first Kenya outlet last December. The company has also revealed plans to open two more stores by the end of 2019. The newly opened outlet is situated at the Garden City Mall in Nairobi while the outlets to be opened by the end of the year will be located at Karen Waterfront Mall and Nyali city. General Manager of Shoprite in Kenya, Andrew Mweemba, has guaranteed the company’s dedication to providing customers with a fresh supply of farm produce and other commodities in order to maintain the organisation’s good name. With recognizable success in other African markets like Nigeria, the planned expansion in the East African nation could serve as a huge boost to the company’s revenue as Kenya ranks among Africa’s biggest markets for retail investors. However, the South African retail giant would face stiff competition from existing large local and foreign retailers, particularly in Nairobi.
Source: venturesafrica.com
Finland: K Group sees market share increase to 36.1%
Finnish retailer K Group said that its market share rose by 30 basis points in full-year 2018, to 36.1%, according to Nielsen data. The group said that its performance was boosted by its K-Supemarket banner, which posted the strongest sales growth of all supermarket chains, according to the Nielsen data. Its K-Citymarket business also grew 'considerably' over the year, it added. “Our strong transformation efforts boosted the growth in our market share in 2018", commented Ari Akseli, president of K Group’s grocery trade division. The key to everything is addressing local customer needs: we are able do this thanks to K-retailers, who know their area and their customers. We are constantly changing and improving store selections and services based on local needs and customer wishes."
Source: esmmagazine.com
Australia: Drakes begins implementation of WCS' CSnx warehouse management platform
Drakes, Australia’s largest independent grocery retailer is integrating WCS (Worldwide Chain Stores) CSnx, next generation warehouse and labour management system into its new grocery wholesale venture, Brave Logistics. As the company breaks away from traditional third party suppliers in its purchasing of groceries, its creation of Brave Logistics will provide its own grocery wholesale division that will serve its supermarkets across the country and allow it to manage costs effectively.
Source: realwire.com
Ahold Delhaize USA local brands to leverage new supply chain solution to offer fresher produce to customers
Groceries are poised to get even fresher for customers up and down the East Coast thanks to an innovative, end-to-end forecasting and replenishment solution being implemented by Retail Business Services, the services company of Ahold Delhaize USA, which manages supply chain operations for Ahold Delhaize USA’s local brands: Food Lion, Giant Food, GIANT/MARTIN’S, Hannaford, Peapod and Stop & Shop. The new solution, which leverages technology from RELEX Solutions, will provide even fresher produce to the millions of customers that shop in the local brands’ stores each week, no matter how they shop - whether in-stores, through pick-up points or online for delivery. “By implementing this game-changing solution, Retail Business Services is further enabling Ahold Delhaize USA’s local brands to deliver on their ambitions to be there for their customers anytime, anywhere with the freshest products”, said Chris Lewis, Executive Vice President of Supply Chain for Retail Business Services. “Not only will it provide local brand stores with the flexibility they need to best serve their customers, it will enable a complete supply chain transformation at a time when customer expectations are rapidly changing the way groceries are bought, sold and delivered.”
Source: globenewswire.com
Out-of-stocks cost Canadian grocers $63bln in sales: Field Agent
A lack of open checkouts and crowded aisles may be annoying to grocery shoppers, but their biggest frustration is finding a desired product is out of stock, according to new research from Field Agent. The retail data insights and consulting firm surveyed 1,775 Canadian shoppers about on-shelf availability during their weekly grocery shop. Field Agent conducted the survey ahead of the launch of a service called the On-Shelf Availability (OSA) Monitor Canada that tracks the availability of a basket of goods on weekends. According to Field Agent, out-of-stock product costs Canadian retailers as much as $63bln a year as consumers who are ready to buy, leave the store empty handed. Asked about the most annoying issues during grocery shopping, out-of-stock products was the most common complaint (29%), followed by too few open checkouts (28%) and congested aisles (14%). “What surprised us the most was that almost a third of consumers state that out-of-stocks are their number one annoyance when grocery shopping”, said Ralph Chiarot, director of operation and client services for Field Agent Canada.
Source: canadiangrocer.com
US: Harris Teeter in Charlotte, North Carolina, moves to self-checkout
Harris Teeter's uptown store on West Sixth Street in Charlotte, North Carolina, will be eliminating its cashiers and transition to self-checkout only format. Danna Robinson, Communication Manager with Harris Teeter, stated in an email to local news outlet WDBJ that the average transaction in the retailer’s uptown store is “significantly smaller than our traditional stores.” She also noted that this move to self-checkout would not eliminate any jobs. “We believe this will allow us to provide better customer service by having more lanes available, so shoppers should be able to get in and out more quickly. This is our only store of this size, so there are no plans to move forward past this unique design,” Robinson said.
Source: delimarketnews.com
US: Price Rite rolls out new store concept in Connecticut
Price Rite Marketplace will unveil five rebranded stores in Connecticut this week featuring an updated assortment and a redesigned store layout, the company said in a press release emailed to Grocery Dive. The remodels follow a successful pilot of Price Rite’s new store concept at three stores in Pennsylvania. The refreshed stores will include an expanded private label assortment under the grocer’s Wholesome Pantry brand, new bakery departments, market style produce departments, updated meat selections, a "Drop Zone" with special deals and lower prices on hundreds of products throughout the store. Price Rite has also enhanced the in-store experience with LED lighting, revitalized store decor and self-service checkouts. Each remodeled location will host a grand re-opening celebration March 29.
Source: grocerydive.com
Amazon continues to storm ahead as world’s most valuable retail brand
Amazon remains the standout brand in the Brand Finance Retail 50 2019 ranking, growing 25% to US$187.9bln, and holds its position as the world’s most valuable retail brand. Amazon’s ever-diversifying portfolio is leaving its retail competitors even further behind. The recent announcement of Amazon’s new grocery store business across the US immediately hit rival retailers shares including multinational giant Walmart (brand value up 10% to US$67.9bln) and supermarket chain Kroger (up 8% to US$5.6bln). The dominance of Amazon is undeniable with its brand value totalling more than the following five brands in the ranking combined: Walmart, Home Depot (up 39% to US$47.1bln), Lowe’s (up 49% to US$23.9bln), IKEA (up 11% to US$21.5bln) and CVS Health (3% to US$21.3bln).
Source: brandfinance.com
Lidl US opens its first Express format
The discounter opened its first convenience-style store at its Arlington headquarters in Washington. It’s called Lidl Express and is the smallest store ever opened by the retailer, globally. The 100 sq m store, opened on the 26 March on the ground floor of the discounter’s US headquarters. It is open to the public but is primarily aimed at providing the head office’s employees with the discounter’s products. It offers a selection of food-to-go solutions, including fresh bakery products and coffee. The store also has a range of grocery items for quick shopping, such as fresh produce and wine. There is no plan to build other Express stores, but this shows how adaptative Lidl can be in terms of formats development.
Source: retailanalysis.igd.com