Lidl UK invests £70m in new DC | UK grocers sell £1bn less on promotions in 2016

Kroger struggles with high food prices | Save Mart gets new CEO

Italy’s Selex posts 4% growth in 2016
Italy’s third largest retail group Selex has reported a 2016 turnover of €10.4bn, up 4% on the previous year, while its market share has risen to 11.7%. For 2017, the forecast is of a further growth of 4.2%, taking the turnover to €10.8bn, against the market trend. Over the next year, the group is planning significant investments in promotion of Selex private label brands. The retailer's best performance has come from the bio, healthy and premium lines. (esmmagazine.com)

Lower food prices weigh on Kroger's profit forecast
Sagging food prices continued to weigh on the nation's largest supermarket chain Kroger, which said 2016 profits will fall toward the lower end of expectations. Kroger reported a $391m profit for the third quarter – an 8.6% drop from the same period last year. Total sales rose 5.9% to $26.6bn during the quarter ended Nov. 5, reflecting the acquisition of Milwaukee-based Roundy's in December 2015. (cincinnati.com)

Lidl keeps up UK investment push with 70m pound depot
Discount supermarket Lidl plans to spend 70m pounds building a new distribution centre in Britain next year, it said on Friday, showing its appetite for investment has not been diminished by the Brexit vote. The site will be the supermarket’s 13th warehouse in Britain. The construction of the DC is aiming to start in 2017, with a planning application lodged for a site at the iPort logistics park. (Reuters)

UK spent £1bn less on promotions in 2016 
British shoppers buy more groceries on promotion than anywhere else in the world. Over a third of all FMCG spending is for items on offer – rising to 45% in the UK’s four largest supermarkets - with the average household spending £1,480 on promotions each year. More recently, the major retailers have been re-thinking their approach in response to pressure from two directions. First, pressure and criticism from the media, consumer watchdogs and the Competition and Markets Authority over claims that many offers mislead consumers. At the same time, Aldi and Lidl have almost tripled their market share in a decade, with their success attributable in part to business models which eschew promotions in favour of ‘everyday low prices’ (EDLP). (uk.kantar.com


UK: McColls Q4 results show sixth successive year of growth
McColls Retail Group, has published its trading update for the 13 week period ended 27th November 2016. The results show the group remains on track to deliver results in line with expectations with total revenue up for the quarter (1.7%) and for the full year (1.9%) and completes a sixth successive year of growth. The opening of new stores continues to be a key driver of growth within the convenience channel for most retailers. McColls identified 1,000 stores as a target for 2016. (igd.com)

H-E-B announces fate of 6 stores acquired from Sun Fresh

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Yes, Virginia, online grocery is failing
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Swiss Migrolino loyalty program draws 21% of customers
About 21% of customers shop at Swiss convenience chain Migrolino due to its loyalty scheme, according to a study by him! International. Customers' preference for its scheme CUMULUS is higher than its competitors, which clocks in at 13%. Two-thirds of Migrolino customers think the stores are 'fast & efficient'. Please, click here to read more at esmmagazine.com

US: Dollar General reports surprise dip in 3Q comps

The dollar-store chain on Thursday posted its first year-over-year quarterly sales decline since its 2009 IPO. At the same time, it reiterated plans to open 900 new stores this year and 1,000 new stores in 2017. Shares fell as low as 9% on Thursday. (Bloomberg)

Nicole Pesco ascends to CEO at Save Mart

Nicole Piccinini Pesco has been named CEO of the Modesto, Calif.-based Save Mart. Most recently serving as co-president and chief strategy and branding officer, Pesco will aim to accelerate the market share of the company’s Save Mart, Lucky and FoodMaxx banners via a reinvigoration of each. (progressivegrocer.com)

Italian Grupo Exito delivers mixed Q3

Grupo Éxito has reported Q3 sales of COP16,571bn (USD5.2bn), up 12.1%, with food sales ahead by 16%. Meanwhile, the retailer posted a net loss of COP100.3bn (USD31.6m), affected mainly by financial expenses in Colombia and a net loss in Brazil. Sales in Colombia increased by 10.6%. In Brazil, sales rose by 4.4% driven by a strong Assaí cash & carry division and a recovery in its Extra hypermarkets. In Uruguay sales grew by 9.3% in local currency. (igd.com)
 

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