Asda ranked as the 'best of the best'
Despite its recent dip in trading, 51% of UK manufacturers ranked Asda as the overall top retailer, based on key criteria such as clearest strategy and best buying team, in the 2015 UK PoweRanking study launched by the retail and shopper specialists, Kantar Retail. The PoweRanking study reveals those companies identified as best-in-class by their trading partners and what the UK retail industry needs to focus on to improve performance and collaboration. The report found that manufacturers have faith in Tesco's return with a landslide 74% of manufacturers naming Tesco as the top predicted "power retailer". Despite Tesco's recent financial struggles and turbulence in senior management, suppliers think Tesco will be able to recover due to its sheer scale, residual brand equity and legacy of innovation. By contrast, only 15% of manufacturers named Amazon as a predicted "power retailer" in five years' time. Other highlights of the UK PoweRanking study include:
- Asda and Aldi were named as the retailers with the clearest company strategy. Asda was commended for using the same clear and consistent strategy and messaging over many years, whilst retaining its focus on value and its target on specific shopper groups, whilst Aldi is commended for its consistent and simple proposition.
- The top retailer to do business with according to manufacturers is Sainsbury's. This prestigious accolade was awarded due to its collaborative nature, ability to build positive working relationships and professional attitude. Manufacturers also rank the retailer highly due to its clear strategies and ability to implement them.
- Waitrose is ranked as the top retailer for the best store branding as a result of its clear and simple communication, value proposition and brand positioning.
(source: retailtimes.co.uk)
French retailer Auchan completes merger with Real in Romania
The French group Auchan has completed the merger by absorption with the retailer Real, which it bought in 2013 from the German group Metro. On Tuesday this week, Auchan formally took over the whole assets belonging to Real Hypermarket Romania. Last year, the French group finished rebranding the 20 Real hypermarkets, following an investment of €40m. The retailer later took over the plots and galleries of 12 former Real hypermarkets, after a EUR 261m transaction. Auchan currently owns 70% of its store park. The French group has now a network of 33 hypermarkets in Romania. (romania-insider.com)
AU: 7-Eleven reaps millions from churning franchisees
Scandal-ridden convenience store chain 7-Eleven made more than $9m last year from churning failed franchisees through its system. The chain is in crisis over a wage fraud scandal that has sparked two reviews and also seen franchisees claim the model is set up for them to fail in favour of head office. Internal documents, obtained by Fairfax Media, show 68 franchisees left the 7-Eleven system in the 12 months to June 2015. (smh.com.au)
Tesco sells South Korea stores for £4bn
Tesco has sold Homeplus, its South Korean business, for £4.2bn as the troubled supermarket chain seeks to shore up its balance sheet. The proceeds will be used to pay off debt and help revitalise its UK business. Homeplus is being bought by MBK Partners, a South Korean buyout firm set up a decade ago. It has partnered with a Canadian pension fund and Singapore's Temasek Holdings for the deal. Dave Lewis, chief executive of Tesco, said: "This sale realises material value for shareholders and allows us to make significant progress on our strategic priority of protecting and strengthening our balance sheet." After tax and other costs the sale will produce £3.35bn in cash for Tesco and is expected to be completed before the end of the year. Retail analyst Nick Bubb said the main aim was to reduce its debt mountain and avoid a rights issue. "Interestingly, however, Tesco say that the disposal will also give it the financial flexibility to buy some UK store freeholds," he added. The Homeplus deal is the first major disposal since Tesco reported a record pre-tax loss of £6.4bn for the year to February. That compared with annual pre-tax profit of £2.26bn a year earlier. It was the biggest loss reported by a UK retailer and one of the largest in the country's corporate history. (bbc.com)
UK: Sainsbury's encourages young people into farming
Sainsbury's is calling on young adults to consider a career in farming as it opens applications for its horticultural and agricultural apprenticeship programmes this September. The retailer is the first to launch such apprenticeship schemes, which are run in partnership with Staffline. They give young adults from the age of 16 the chance to work with some of the retailer's most progressive food suppliers, many of whom use the latest innovations and technology in the sector - from learning the digital infrastructure of glasshouse computer systems to managing crop growth through the use of drones and smart phone apps. Research reveals that over a third of 16-24 year olds match the criteria for a modern-day career in farming, and the industry will need 60,000 new employees just to replace retiring farmers. (heraldscotland.com)
UK: Waitrose' soft fruit sales jumped by 12%
The start of the new school term and mixed weather has helped to deliver a provisional divisional weekly sales (excluding fuel) increase of 1.8% at supermarket chain Waitrose when compared with the same week last year. Soft fruit sales jumped by 12%, prepared fruit sales grew by 7% and snacking salads were up by 28%, the retailer has reported. (esmmagazine.com)
UK: Morrisons to receive up to £50m for small stores, says report
Bradford-based supermarket chain Morrisons is expected to receive between £30m and £50m from the sale of its convenience stores, according to a report. The Sunday Telegraph says the supermarket chain's management is in negotiations with Greybull Capital, in an effort to seal a deal before it updates the City on Thursday. The report claims that Mike Greene, the retail veteran who is fronting Greybull's bid, is understood to be keen on rebranding the 150-store chain as "My Local". The stores are currently known as "M Local". (thestar.co.uk)
UK: New Morrisons chief faces fresh profit fall
Supermarket chain Morrisons is expected to post another slump in half-year profits next week, leaving investors keen to hear the turnaround plans of new boss David Potts as he presents his first set of results to the City. Brokers at Barclays expect the Bradford-based group to post a 2.5% fall in half-year like-for-like sales, and a 23% slide in earnings to £203m compared to a year ago. (scotsman.com)
Taiwan: Head of Pxmart suspected of bribery
Prosecutors interrogated Lin Ming-shiung, the head of supermarket chain Pxmart, for his suspected involvement in bribing the New Taipei City Government to secure urban development projects in Tamsui. Lin, who also owns construction company Yuan Lih Group, is suspected of bribing former New Taipei City Deputy Mayor Hsu Chih-chien in 2011. (asiaone.com)
Interesting article on retail: 
The Bigbasket of groceries is set to get bigger
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