US: Mass retailer private label sales dominate national brands
Dollar volume from mass retailer private label brands climbed 41% over the past five years while national brands only increased by 7.4%, according to a report from the Private Label Manufacturers Association that analyzed Nielsen data. Store brand unit sales at mass retailers surged by 33.2%, while national brand unit sales grew less than 1%. The mass retail sector includes club retailers, mass merchandisers and dollar stores. As a result, retail private label brands have gained considerable market share at mass retailers in the past five years, the report says. Overall store brand unit market share grew to 23.2% in 2018, from 18.5% in 2013, and dollar market share increased to 19.3% in 2018 from 15.5% in 2013. Last year alone, sales of private labels got a 9.8% boost, while national brands remained flat. The report also found that the mass retail channel is growing faster than traditional supermarkets, with total sales in the mass channel reaching $314bln versus $330bln in supermarkets over the past five years.
Source: grocerydive.com
US: Albertsons profits improve in Q4 as sales inch up
Albertsons reported sales for the 12-week fourth quarter, which ended February 23, were flat at $14bln, reflecting a net decline of 49 stores since the end of last year’s fourth quarter. Identical-store sales, excluding fuel, were up by 1.1% in the quarter. More encouraging for Albertsons was 52% growth in e-commerce sales and a stronger profit performance. Gross margin as a percent of sales totaled 29% in the quarter, up from 28.1% in last year’s fourth quarter. Adjusted EBITDA totaled $727.2mln, or 5.2% of sales, up from 5% of sales in last year’s fourth quarter. Albertsons said a 40-basis point shrink reduction and increased penetration of private brands during the quarter sparked the higher profits. Net earnings for the period totaled $135.6mln. Last year’s fourth-quarter net income of $388.3mln was almost entirely the result of a reduction in federal tax rates. For the fiscal year, Albertsons posted sales of $605bln, a 1% increase; non-fuel comp gains of 1%; and e-commerce sales growth of 83%. Gross profit was 27.9%, and net income totaled $131.1mln. Albertsons reduced its net debt to adjusted EBITDA ratio of 3.5x at the end of fiscal 2018.
Source: winsightgrocerybusiness.com
US: Save Mart switching to renewable diesel fuel
By the end of April, the Save Mart Cos. will run all transportation operations using 100% renewable drop-in diesel produced by Neste MY Renewable Diesel. The first grocer to fully convert to Neste MY Renewable Diesel, Save Mart will offset the emissions of more than 5,500 cars on the road annually by making the switch. “The company understands its business activities impact the environment, and by investing in Neste MY Renewable Diesel, TSMC is reducing up to 80% of its emissions, improving local air quality and reducing our carbon footprint”, noted Bruce Christiansen, the grocer’s group VP of logistics and supply chain optimization.
Source: progressivegrocer.com
US: Wegmans pledges to cut in-store plastic packaging
Wegmans Food Markets has committed to reduce in-store plastic packaging made from fossil fuels, as well as other single-use plastics such as straws, by 2mln pounds in 2019, with a goal of a 10mln pound reduction by 2024. To a large extent, Rochester, New York-based Wegmans will attain this goal by eliminating some current plastic packaging and replacing it with materials made from plant-based renewable fiber. The grocer will also continue to work closely with The Center for Sustainable Packaging at Rochester Institute of Technology to find new opportunities and packaging innovations.
Source: progressivegrocer.com
Kaufland Australia appoints new CEO
Kaufland has appointed Richard Umbers as its new CEO. Umbers, who left Australian department store chain Myer 12 months ago as CEO, will be based at Kaufland’s headquarters in Germany. Umbers has previously held management roles at Woolworths Group and was Managing Director at Aldi North West UK & Republic of Ireland. While Umbers will not be directly involved in Kaufland’s launch into Australia, he will lead international buying and sourcing operations. Kaufland received planning permission for three stores last month and further investment has been secured.
Source: retailanalysis.igd.com
HappyFresh partners AEON to deliver groceries to more Malaysians
HappyFresh, an online grocery delivery company, has teamed up with AEON Co (M) Bhd to provide Malaysians with better value at their convenience. Customers can now buy groceries via the HappyFresh mobile app from four new participating stores in Klang Vallley. They are AEON Wangsa Maju, AEON Taman Equine, AEON MaxValu Prime in Sunway Velocity and AEON Bandar Datuk Onn in Johor Bahru. Hu Hun Hui, managing director of HappyFresh Malaysia, said: “Over the years, we have seen an increase in our customer base as we introduce new partners. With AEON onboard our platform, we are confident they will further add value to our service of delivering the best to our customers.” HappyFresh customers will be able to select from nearly 50,000 high quality products offered on the platform.
Source: nst.com.my
France: Casino Group invests in money management app
France-based trade publication LSA has reported that Casino Group has invested €20mln in money management app Bankin’. The two organisations have been working together since the end of 2018 with users of the Casino Max payment and loyalty app able to sign up to Bankin’ for only €1. Bankin’s app enables people to aggregate their bank accounts and manage their personal finances in one place. Bankin’ has 2.9mln users across France, Germany, Spain and the UK.
Source: retailanalysis.igd.com
Kenya: Tumaini to open two more stores in Nairobi
Emerging supermarket chain Tumaini Self Service Limited is set to open two outlets in Nairobi this Friday, bucking the trend in the country’s retail sector that has seen major players go through a rough financial patch. The retailer plans to open a new store along the Eastern bypass (Kamaki’s) and one more in Kahawa West on the boundary of Nairobi and Kiambu counties. The new outlets bring to eight the number of Tumaini branches in Nairobi and 12 countrywide. “Our aim is to be in all the major arteries of Nairobi. We are spending around Sh200mln to set up the two stores”, said a company source.
Source: businessdailyafrica.com
Russia: O’key reportedly eyed by Yandex.Market online marketplace
Russian struggling mid-cap retailer O’key could be in part acquired by Yandex.Market online marketplace, a joint venture between Russia’s largest bank Sberbank and most valuable digital company Yandex, Kommersant daily reported citing unnamed sources close to the deal. Previously unconfirmed reports claimed that Sberbank seeks to acquire O’key, which the bank denied. Now reportedly Yandex.Market could acquire a stake in O’key, with Sberbank financing the transaction. Market capitalization of the retailer stood at about $520mln as of the announcement. “The scale of the acquisition and strategic benefits for Yandex.Market are not clear at this point, but will provide short-term support for O’key”, BCS Global Markets commented.
Source: intellinews.com
British supermarket Iceland launches home delivery in Prague
Supermarket Iceland, a purveyor of frozen and refrigerated foods, is joining forces with grocery delivery service Košík.cz, reports Tyinternety.cz. From March, Košík has been offering Iceland brand products exclusively at its e-shop. More than a hundred products are available to customers, which are transported door-to-door via special freezer containers. Iceland operates seven supermarkets in the Czech Republic, but cooperation with Košík will allow it to cover a significantly larger number of customers throughout the country, an estimated 4mln customers. The 120 listed products include meat, fish and seafood, fruits and vegetables, ready-made meals, a wide range of vegetarian options, dairy products, ice cream, and desserts.
Source: news.expats.cz
Brazil: Carrefour reports 10% growth in first quarter gross sales
Gross sales at Carrefour Brasil, one of Brazil’s largest food retailers, rose 9.9% in the first quarter of 2019 to 14.2bln reais ($3.62bln) compared with the same period last year, as food inflation more than compensated for a less favorable calendar. Easter weekend, which boosts sales significantly, took place in the second quarter of 2019, but was part of the first quarter of 2018, the company said. The Brazil-listed unit of France’s Carrefour SA recorded major growth at its wholesale unit known as Atacadão, which gained relevance amid the slow recovery of the Brazilian economy from recession. The Atacadão division posted a quarterly gross revenue of 9.5bln reais, up 13.6% from the same period one year ago, helped by ongoing efforts to expand the business organically. The retailer opened four of the 20 new stores expected for 2019 in the first quarter. In the retail unit, which uses the brand name Carrefour Varejo, gross sales grew by only 0.2% to 4.65bln reais. On a like-for-like basis, consolidated gross sales rose 6.6% in the first quarter.
Source: reuters.com