FamilyMart Japan investing in labour-saving technologies
Japanese convenience store FamilyMart Holdings is preparing to invest ¥25bln (US$223mln) on labour-saving technologies. The firm will partner with tech firm Panasonic to introduce self check-out, digital displays and other similar devices which automate procedures traditionally undertaken by staff. The investment is intended to serve the brand’s franchisees who have been burdened with high labour costs in order to keep stores open around the clock.
Source: insideretail.asia
South Africa: Pick n Pay posts 18% jump in full-year earnings
South African retailer Pick n Pay Stores Ltd reported an 18% jump in full-year earnings, as price cuts helped it attract highly cost-conscious shoppers and cope with the difficult trading conditions that have hit other retailers. The country’s second largest grocery store chain, which pitches itself as a more affordable alternative to the likes of Woolworths and Shoprite’s Checkers, said headline earnings per share (HEPS) were at 326.71 cents ($0.2274) for the 52 weeks to end-February, compared with 276.98 a year earlier. HEPS is the main profit measure in South Africa that strips out certain one-off items. In a statement, Pick n Pay CEO Richard Brasher thanked his staff for delivering an “outstanding result in a difficult economy”, attributing success to price cuts and efficiency gains. “This result is built on a clear, long-term strategy to create a leaner and more cost-effective business”, he said, adding that Pick n Pay will also have good years in 2019 and beyond.
Source: uk.reuters.com
Promotion boosts sales at Australia's Coles
Australia’s second-biggest grocer Coles Group Ltd posted a pickup in quarterly sales growth, though it was mostly driven by a promotion aimed at children, raising questions from traders about its future sustainability. Coles shares rose 0.2% by mid-session, while the broader market fell 0.3%. The promotion, offering caricatures of fruit and vegetables for purchases over A$30 ($21), lifted comparable sales growth, adjusted for New Year’s Eve falling in the quarter, to 2.2% from 1.5% in the second quarter. In the September quarter, a similar offering of miniature grocery items became such a hot commodity in school playgrounds that sets were advertised for hundreds of dollars online. Sales growth doubled to 5.1%.
Source: reuters.com
More people buying grocery online in Qatar
Online groceries shopping is rising in Qatar, taking benefit of country’s strong Information Technology (IT) infrastructure and high-income population. Fresh fruits and vegetables are the top items being bought online through online applications (apps) in Qatar. “When we were starting Suncart, the biggest feedback we received was that people might order non-food or packaged food online but will never order fresh fruits, vegetables or meat online”, Khawaja Jaffer, Founder & CEO, Suncart - an app for food delivery - told The Peninsula. “To our surprise, 18 out of the top 25 sold items are from the fruits and vegetables category, people enjoy the high-quality fruits and vegetables sourced and delivered through Suncart,” added Jaffer. With the rising demand for delivery of food items, several apps have come up in Qatar for food items delivery.
Source: thepeninsulaqatar.com
Casino Q1: flat same-store sales in France
France-based Casino has reported first quarter results saying same-store sales rose 3.0% at a Group level. A flat performance in its home market, with same-store sales, including Cdiscount, contracting by 0.1%, was offset by its performance in Latin America, especially Brazil. Casino reported total sales in France fell by 3.3%, to €4.4bln, while organic growth contracted by 1.5% and same-store sales, excluding Cdiscount, were flat at 0.0%. Its performance was affected by store closures, with it noting the closure of 109 Leader Price stores over the last 12 months, and the continuing effects of the protests at the end of the year. Casino said that its performance was aided by its focus on ‘buoyant segments’, saying that sales of organic products had risen 11% in Q1, with food ecommerce sales up by 11% too. By banner, Casino said: Monoprix: its performance was aided by a rise in customer traffic, of 1.7%, with net sales of organic products up by 9.7% and food ecommerce sales rising by 11.8%. The latter figure was helped by its partnership with Amazon, which covers all of Paris and 35 border towns; Franprix: on the positive side, Casino said customer traffic rose by 2.0%, while sales of organic and catering products were up by 4.8% and 12% respectively. The retailer said the roll out of the Bibi digital loyalty programme continued, which it said reinforced ‘the personalisation of the offer in real time’; Géant hypermarkets: food sales continued to perform well, on a same-store basis, with sales of organic products, which rose 7.4%, and ecommerce sales, which increased by 11.2%, helping overall results. Casino noted the positive impact from the roll out of “…le drugstore parisien” store-in-store concept at three stores; At its other banners, Casino noted, again, the strong sales of organic products, roll out of digital initiatives and the benefit of further franchising within its convenience store operations.
Source: retailanalysis.igd.com
Singapore: Grocery delivery startup Honestbee is running out of money and trying to sell
Honestbee, the online grocery delivery service in Asia, is nearly out of money and trying to offload its business. The company has held early conversations with a number of suitors in Asia, including ride-hailing giants Grab and Go-Jek, over the potential acquisition of part, or all, of its business, according to two industry sources with knowledge of the talks. Founded in 2015, Honestbee works with supermarkets and retailers to deliver goods to customers using its store pickers, delivery fleet and mobile apps. The company is based in Singapore and operates in eight markets across Asia: Hong Kong, Singapore, Taiwan, Thailand, Indonesia, Malaysia, Philippines and Japan. In some markets it has expanded to food deliveries and, in Singapore, it operates an Alibaba-style online/offline store called Habitat. The company makes its money by taking a cut of consumer transactions, while it also monetizes delivery services separately.
Source: techcrunch.com
UK: Scotmid Co-operative profits up 11% and records highest ever net assets ahead of its 160th anniversary
Scotmid Co-operative has reported a £5.3mln trading profit for the year ended 28 January 2019 - up £0.5mln (11%) on the previous period. The retailer, which celebrates its 160th anniversary in November, confirmed the value of its net assets had risen to £103mln, its highest ever level. It also recorded turnover of £378mln, an increase of £4mln on the previous year. As with other UK societies, sales figures were boosted by the World Cup and the hottest summer for 40 years, while at the same time facing into significant external cost increases, a lacklustre economy and Brexit uncertainty.
Source: thenews.coop
Walmart's Mexico unit says first-quarter profit up, but misses estimates
Mexico’s largest retailer Walmart de Mexico reported that first-quarter net profit rose 3.8% in a “challenging” start to the year, falling below market expectations. Analysts had expected net profit to rise 6.4%, according to a Reuters poll. The company attributed its weaker-than-expected performance to a gasoline shortage in Mexico that slowed shopper traffic, as well as a calendar shift to celebrate the Easter holiday in April rather than March. Walmart de Mexico’s said its gross margin, a measure of profitability and efficiency, fell in Mexico by 20 basis points to 22.5% of profit as a percentage of sales, as its stores offered discounts to turn over inventory and absorbed costs from delays in clothing imports. The retailer’s net profit was 8.66bln pesos ($446mln), up from 8.35bln pesos a year earlier. The quarter generated 151.73bln pesos in revenue for the company.
Source: reuters.com
US: Farm Stores goes big with tiny eco-friendly drive-thrus
A regional Florida convenience store called Farm Stores has a big East Coast expansion on the way. The chain is unique not only because of how customers visit the store, but also because of the materials used to make some of the stores themselves. Farm Stores is a drive-thru convenience store chain that first opened in 1957 and became a franchise in 2015, according to CNN. Many of its locations are now made of repurposed shipping containers, a strategy that the chain is continuing as a franchisee opens the latest new location in Louisiana. Farm Stores are already under construction in New Jersey, New York and Connecticut, with plans for 600 to open within the next seven years - most of them constructed from shipping containers as local building codes permit. The chain currently has 65 locations in Florida. As a small, drive-thru only convenience store that sells fresh baked goods, farm-fresh dairy and vegetables as well as household staples, the expansion of Farm Stores could be coming at just the right time to meet a couple of different trends. Farm Stores’ recycled, eco-friendly artifices may appeal to Millennials and Gen Z shoppers who want to see businesses they patronize demonstrate a commitment to sustainability. The method of construction does, however, also benefit the business. The strategy makes opening new stores 40% cheaper than building them from the ground up, according to CNN. The focus on convenient and fresh groceries also promises to play well with Millennial and Gen Z shopping cohorts.
Source: retailwire.com
US: Whole Foods adds new in-store eateries in Florida and California
Whole Foods opened two new in-store eateries this week, according to reports from Fast Casual. Bird in the Hand, an American rotisserie concept, opened inside Whole Foods' West Palm Beach, Florida location, and Nekter Juice Bar opened its first store within a Whole Foods in Porter Ranch, California. Bird in the Hand was developed with the Whole Foods customer in mind, operator Collab Hospitality said in a statement. Menu items include a lemon rosemary bird, a 20-spice bird and black truffle prime rib. The menu also features vegetarian options like fire-roasted cauliflower, pretzel mac-n-cheese and maple-roasted bacon Brussels sprouts. The restaurant will also serve house-made desserts. Nekter will debut a signature coffee menu at its new Whole Foods location. The partnerships are part of Whole Foods’ Friends of Whole Foods Market program, which looks to bring unique in-store experiences and local flavor to shoppers through chefs, culinary and lifestyle brands.
Source: grocerydive.com
US: Northgate González Market kicks off 360-degree marketing campaign
Northgate González Market has kicked off a new multimedia campaign. Launched during the Latin Billboard Awards show telecast, the effort features the Hispanic grocery chain’s authentic food, ingredients and fresh offerings, tied into the themes of sports, music and TV binge watching. “We recognize that our customers are not all the same, each customer has a different shopping mission, and each customer has their own passion points and stories, we recognize that there is a story behind every visit to our stores”, noted Caro D’Antuono, VP of marketing for Anaheim, California-based Northgate Market.
Source: progressivegrocer.com