US: 3 takeaways from Dollar General, Dollar Tree earnings that sent stocks soaring
Dollar Tree and Dollar General boosted their outlook for the year, as shoppers squeezed by inflation seek cheaper prices. The companies are seeing people buying a different mix of merchandise than they were a year ago, when they had stimulus dollars in their pockets. The dollar chains are also expanding while trying to strategize about ways to manage higher costs.
US: JRW Realty facilitates the acquisition of six Walmarts in Louisiana
JRW Realty, a nationwide commercial real estate brokerage dedicated to finding and delivering net-leased properties, has facilitated the acquisition of six Walmart Neighborhood Markets in Louisiana on behalf of its client for a total price of $84mln. The six stores account for approximately 43,000 square feet each and are located in the southern or coastal Louisiana towns of Meraux, Houma, Prairieville, New Iberia, Opelousas, and Thibodaux. All purchases have single-tenant net leases in place, with individual prices ranging from $11.8mln to just under $16.5mln. The total square footage of the six stores is 257,427.
Watch: How e-commerce is forcing automation in grocery warehousing
The trend in small-sized orders is likely to continue, and that will pose challenges for warehouse operators and e-grocers, says Colman Roche, vice president of e-commerce and retail with Swisslog. The trend has been for smaller order sizes for some time, but the COVID-19 pandemic amplified that, says Roche. Consumers ordered more online, they ordered more frequently, and the characteristics of those orders changed. The number of lines per order often went up. Roche, however, sees that long-term trends will re-emerge. “Now, as people are spending more time away from home, we’ll see people tending to order one or two items. I think the long-term trends will resume”.
US: Costco margins hit by rising freight and labor costs, shares slip
Costco Wholesale Corp reported a fall in gross margins, hit by soaring freight and labor costs across the United States, sending shares of the membership-only retailer down 2% and overshadowing an otherwise upbeat quarterly report. In the third quarter, Costco's gross margins dropped by 99 basis points. Costco's total revenue rose 16% to $52.60bln in the quarter ended May 8, compared with estimates of $51.71bln, according to Refinitiv IBES data.
Italy: Nova Coop achieves net profit of €16.3mln in 2022
Italian consumer cooperative Nova Coop has reported total consolidated sales of €1.8bln and a net profit of €16.3mln for its full-year 2021. The group's e-commerce channel continued the growth trend seen during the pandemic (+11.1%), while home grocery delivery now covers 300 municipalities in the five Piedmont provinces of Turin, Novara, Vercelli, Biella and Cuneo.
Britons’ disposable income falling by most since 2008, Asda says
UK households’ disposable income has fallen by the most since 2008, according to grocer Asda Group Ltd., underlining the extent of the country’s cost-of-living crisis as the government steps up efforts to tackle it. Weekly household income to spend on non-essentials dropped by £40.38 ($50.77) on average in April from a year earlier, the biggest decline since the UK’s third-largest supermarket operator started publishing a tracker on the data. It has fallen to £205 a week, the lowest since October 2018. Asda said revenue slid 9% to £4.6bln in the first three months of the year as customers eat out more after the easing of Covid restrictions.
Dutch supermarket chain launches ‘chat checkout’ in Belgium
Dutch supermarket chain Jumbo is launching its first “chat checkout” in Belgium, for customers who would like to chat with the cashier while taking their time packing up and paying for their groceries. In the Netherlands, such checkouts have been around for a while but the chain is now launching the first one in Belgium. It will be in the new Jumbo store in the Antwerp municipality of Balen. “The chat checkout is mostly aimed at older, lonely people,” franchise owner Martijn Vis of the Balen branch told Het Nieuwsblad.
UK: Zapp in talks to lay off 10% of its staff
Speedy grocery company Zapp has become the latest company to suffer in the tech downturn, telling 10% of its staff that they are facing redundancy. The London-based company told staff the news during an all-hands meeting and then in an email, which has been seen by Sifted.
China: Alibaba Group announces March quarter and full fiscal year 2022 results
Alibaba Group Holding Limited “Alibaba” or “Alibaba Group”) announced its financial results for the quarter and fiscal year ended March 31, 2022: Revenue was RMB204,052mln (US$32,188mln), an increase of 9% year-over-year that was primarily driven by the revenue growth of the China commerce segment by 8% year-over-year to RMB140,330mln (US$22,137mln), Local consumer services segment by 29% year-over-year to RMB10,445mln (US$1,647mln) and Cloud segment by 12% year-over-year to RMB18,971mln (US$2,993mln).
Denmark's Netto introduces 'digital shopping cart'
Danish retailer Netto has introduced a new digital checkout system that recognises and registers goods during a shopper's trip to the store, with payment being made through the retailer's Scan & Go platform. The solution will initially be introduced to five Netto stores in the period running up to the start of July.