Grocers among the world's 75 most valuable retail brands
Amazon, Walmart and Costco are among the big-name retailers atop the third annual BrandZ Top 75 Most Valuable Global Retail Brands ranking released April 30 by WPP and Kantar. Other, more pure-play grocers such as Aldi, Whole Foods Market, The Kroger Co. and Publix Super Markets also made the cut. The report reveals that the value of the world's top 75 retail brands increased 12% to $1.5tln in the past year. Launched in conjunction with the World Retail Congress (WRC), it provides an indication of the brands that are most likely to prevail in a post-coronavirus market and uses valuations data incorporating stock price performance from April 2020 to reflect the impact of COVID-19, according to the authors. It also drives home the retail sector's pivotal role in the global economy as brands respond to shifts in consumer behavior while facing business-critical changes to supply and demand, and a restricted ability to trade.
US: KeHE reduces food waste
KeHE announces its multi-year partnership agreement with Spoiler Alert. Spoiler Alert is a venture-backed, technology company, helping the grocery supply chain manage unsold inventory more effectively. The Boston-based company increases its partners' performance through sales management and analytical tools, along with a scalable, proprietary business-to-business trading platform.
Amazon posts $75bln first-quarter revenues but expects to spend $4bln in Covid-19 costs
Amazon emerged as one of the big winners of the coronavirus pandemic, announcing it had revenues of $75.4bln in the first three months of the year - over $33mln an hour. The boom in sales, 26% higher than the same time last year, came at a cost, as profit fell 29% from a year earlier to $2.5bln. And the company said there was more spending to come. Jeff Bezos, Amazon’s founder, said the company’s shareholders should “take a seat” because the company planned to spend $4bln or more in the next three months on coronavirus-related expenses, including getting products to customers and keeping employees safe.
US: Albertsons has amazing start to 2020
Albertsons identical store sales surged 34% during the first two months of the retailer’s first quarter and could have been even stronger judging from comments CEO Vivek Sankaran made during the company’s earnings call. Since the end of Albertsons fiscal year on February 29, the company said it experienced significant increases in customer traffic, product demand and overall basket size in stores and online as customers adjusted to the circumstances around COVID-19. As a result, Albertsons identical store sales increased 47% during the four-week period ended March 28 and increased 21% during the four weeks ended April 25, giving the company a blended total for the two months of 34%. Sankaran also noted that e-commerce sales increased 109% during March before surging 374% in April.
US: Retailers face consumer safety worries as economies reopen
Retailers might be itching to reopen their stores, but consumers still don’t feel safe inside them, at least according to new survey findings from Deloitte that paint a picture of shopper attitudes during the ongoing COVID-19 pandemic. Only 34% of U.S. consumers feel safe enough to shop inside stores now, according to the new “Deloitte Global State of the Consumer Tracker” survey report. Deloitte drew its findings via surveys of 1,000 consumers in the U.S., along with similar surveys in 12 other countries, during the week of April 13, 2020. “Health concerns generally exceed financial concerns in the U.S., with more than 50% of respondents concerned about health and nearly one-quarter of respondents worried about finances”, Deloitte said.
Walmart Mexico reports a 15.4% jump in quarterly profit
Walmart’s Mexico unit reported a 15.4% jump in quarterly profit, meeting analysts’ expectations of strong results due to a surge in shopping triggered by the coronavirus pandemic. Walmart de Mexico, the biggest retailer in Mexico, reported a first-quarter net profit of 10bln pesos ($420mln), up from 8.7bln pesos a year earlier. Chief Executive Guilherme Loureiro said in a webcast that the results reflected high demand for essential goods in an emergency period that was not part of the “ordinary course” of business, and led to 20,500 new hires.
Mintel predicts UK online grocery sales to grow by 33% in 2020
The latest research from Mintel reveals the online grocery market in the United Kingdom is forecast to grow by 33% in 2020 to reach an estimated value of £16.8bln, up from £12.7bln in 2019. This phenomenal rise follows four consecutive years of slowing growth: in 2019, growth fell to a historic low of just 2.9%. The market is set to be worth £17.9bln by 2024, growing by 41% over the five-year period. This comes as Mintel reveals a dramatic change in online shopping habits over the COVID-19 lockdown period, habits that Mintel believes could prove lasting.
SPAR Scotland commits to supporting local businesses
As many areas of convenience retail are experiencing change, the COVID-19 pandemic is transforming the way SPAR wholesaler for Scotland CJ Lang & Son Ltd works with local suppliers. As the pandemic hit the country, SPAR Scotland took the time to speak to its existing local supplier base to see what they could do to support them - particularly those who were involved in the catering industry. SPAR Scotland works with over 150 local Scottish suppliers at any given time. As shoppers suddenly re-discovered the importance of shopping and supporting local, the knock-on effect of this in many cases was the adjustment of orders to local suppliers to help them maintain their volumes. “Such developments are not only assisting local businesses during this time of uncertainty, but it has allowed us to maintain a regular flow of local products to our SPAR stores right across Scotland,” said Colin McLean, CEO of SPAR Scotland.
Germany: Rewe continues to grow in 2019
Rewe has reported its sales for 2019, with total revenue growing to €62.7bln, up from €61.2bln in 2018. Rewe said its retailers in Germany saw growth of 9.1% in 2019, driving the overall positive growth and growing faster than its other groups. Store numbers increased by 92 to 1,810, up from 1,718 in 2018. Rewe continues to focus on its independent retailers and expansion in this area. In Germany, full range stores which include Rewe, Rewe Center and Rewe to Go banners, saw sales grow by 3.2% to €24.5bln. The 2020 concept has been rolled out and has been successful in meeting the needs of shoppers. Internationally, full range store sales grew by 8.2% (7.9% when adjusted for currency effects) to €10.2bln and this includes operations in Austria, Bulgaria, Croatia, Czech Republic, Lithuania, Russia, Slovakia and Ukraine. Particularly strong growth was seen in Central and Eastern Europe, with Billa and Iki Lithuania together growing by 20.4% to €3.7bn.
Sweden: ICA Gruppen interim report Q1 2020
ICA Gruppen reported a strong quarter affected by covid-19: Consolidated net sales amounted to SEK 30,366mln (28,098), an increase of 8.1%. Operating profit excluding items affecting comparability was SEK 1,310mln (1,125). Consolidated sales and operating profit were affected by the ongoing covid-19 pandemic. The effect on operating profit during the first quarter, which arose during March, is estimated to be in the range of SEK +50mln. Profit for the period was SEK 976mln (813). Earnings per share were SEK 4.83 (4.02).