US: Whole Foods Market opens in Toledo
Whole Foods Market in Toledo opened its new store located at 3420 Secor Road on Aug. 7. The new store is 30,000 square-foot in size. “We’re thrilled to open our doors to the Toledo community with the opening of their new Whole Foods Market,” said Ben Moher, Store Team Leader. The new store features a fresh produce department, including 24 feet dedicated to fresh vegetables with selections from regional growers, as well as self-serve, fresh squeezed orange juice and pressed juice. The company also said that to celebrate joining the community, five percent of the Toledo store’s net sales on Wednesday, Aug. 14 will benefit Toledo GROWs, a nonprofit organization dedicated to supporting Toledo’s community gardens and educating the public about local and nutritious food. Whole Foods Market Toledo employs approximately 100 team members. Whole Foods Market has 10 additional stores in Ohio.
Source: The Chestnut Post
US: How retailers in the US are prioritizing fresh to compete beyond price
IGD's Retail Analysis recently studies how three retailers have designed their fresh food departments to compete beyond price and focus on the produce itself. New Seasons Market in Seattle was noted for its visual merchandising. The retailer places an emphasis on environmental and community initiatives, saying it commits 10 percent of its after-tax profits to the communities it serves. Giant Heirloom Market in Philadelphia stood out for its range development. This is a new store concept specifically curated for urban neighborhoods. Produce is the focal point of the store, with 30 percent of the total range being fresh fruit and vegetables. It also has a large plant-based section with meat alternatives and prepared meals. Lastly, Whole Foods Market in Houston was cited for its sourcing credentials. It was also noted for its blurring of retail and foodservice.
Source: IGD
US: Robots are taking over major supermarket chains
The grocery industry is stepping up its investment in shopper-facing robot technology as it strives to offset the costs of online delivery and pressure from non-supermarket competition. Retailers overall are investing an estimated $3.6 billion in artificial technology globally, and are expected to invest $12 billion by 2023, according to Juniper Research. Robot-automated warehouses, driverless robot delivery cars, scanning and sorting inventory, and inspecting for hazards such as spills are some of the applications robots are being used for right now. The industry is now working on how to oversome some of the challenges, like robot fails and getting customers used to their presence. According to the research, some of the benefits reported include accurate pricing, ability to remember customers' preferences and the ability to perform less desirable tasks - all without requiring a break.
Source: https://www.thewisemarketer.com/channels/retail-grocerypharmacy/robots-are-taking-over-at-kroger-walmart-whole-foods-what-could-possibly-go-wrong/
US: Big Y to break ground on distribution center expansion
Big Y Foods is scheduled to break ground on Aug. 7 at 10 a.m. on an expanded distribution center, which the New England grocer expects will help to fuel its growth over the next 20 years. The groundbreaking will take place at the Big Y Store Support Center in Springfield, Mass., with Big Y President and CEO Charles D’Amour and Springfield Mayor Domenic Sarno in attendance, among other state, city and company officials. According to the company, the distribution center, currently 189,000 square feet, will have another 232,000 square feet added to it, for a total of 425,000 square feet, and the facility’s receiving bays will grow from the current 19 to a total of 53 dock doors. Additionally, the number of staff is expected to increase from 92 to 124.
Source: Progressive Grocer
US: Sales up for Weis Markets
Sales increased 1.9 percent in the second quarter and comparable store sales rose 1.4 percent for retailer Weis Markets. Weis’s sales rose to $888.0 million during the thirteen-week period ended June 29, compared to the same period in 2018. The Company's 2019 second quarter sales benefited from the Easter holiday shift. Net income increased 7.2 percent to $20.5 million compared to $19.1 million in 2018, while earnings per share totaled $0.76 compared to $0.71 per share for the same period in 2018. Weis attributed its second quarter sales and comparable store sales increases to the first quarter launch of its "Low, Low Price" program, and the expansion of its online ordering service. This program is now available in 150 stores.
Source: Supermarket Perimeter
AUSTRALIA: Woolworths breaks ground on new $135m distribution centre
Woolworths has commenced building works on the supermarket’s new Melbourne Fresh Distribution Centre (MFDC) in Truganina, Victoria. According to the company, the multi-million state-of-the-art facility will store and deliver fresh produce and chilled products to hundreds of Victorian supermarkets, create 200 jobs during construction and 300 permanent new jobs when it opens in late-2020. The facility will replace Woolworths current operations at Mulgrave. At full capacity more than one and a half million cartons a week will move through MFDC. The MFDC will have a solar panel system on the roof and charge points for electric trucks. The Mulgrave Produce DC will continue to operate until the MFDC opens in late 2020.
Source: Logistics Magazine
AUSTRALIA: Aldi wins Canstar Blue award
German supermarket chain Aldi has taken home it’s seventh Canstar Blue rating for customer satisfaction in nine years. Aldi either matched or outranked all major supermarkets in food quality and value for money, according to the report. "We are very focused on anything that adds cost and complexity that could jeopardise our business model and how we’re able to provide our prices," said Adrian Christie, Aldi’s customer service and communications director. "If we’re looking at managing large volumes of data and manipulating that data to sell to our customers, that’s a cost," Aldi said it has repeatedly strayed from the path of its rivals – refusing to introduce self serve checkouts, home delivery and feature no in-store music. The Canstar survey found that value for money ranked the highest on Australia’s wish list with freshness of fruit, vegetables and meat coming in second.
Source: Brinkwire
SOUTH KOREA: South Koreans start boycotting Japanese retailers
As a South Korean consumer boycott of Japanese goods gains momentum, consumers are starting to share information on new and upcoming Japanese retailers coming to the country. The intention, reports Korea Bizwire, is to include the retail brands on the boycott list and hurt sales as soon as the stores open. Discord between the two countries dates back to Japan’s colonial occupation of the Korean Peninsula before and during the Second World War and controversy over forced labor and sexual slavery. It expanded into a diplomatic crisis last week when Japan threatened to throttle exports of materials essential to South Korean industries. Last weekend, thousands of protestors marched in Seoul, accusing Japan of an “economic invasion”. The boycott campaign against Japanese retailers has stemmed from there.
Source: Inside Retail Asia
SOUTH AFRICA: Walmart losses in Africa continue
Walmart’s 51 percent stake in South African retailer Massmart continues to disappoint as the retailer forecast more lower-than-expected earnings across all four of its divisions for the six months ended June 30. Massmart said sales rose 5.5 percent to $3.1 billion (U.S.) in the six months. The retailer’s local operations underperformed relative to those outside South Africa, with total sales rising by 4.9 percent and 11.8 percent, in Rand terms, respectively, noted IGD analyst Stewart Samuel. Massdiscounters lackluster performance prompted a leadership shake up, including CEO Albert Voogd being replaced by interim chief exec Andrew Stein on July 1. The company expects to post operating losses of $2.1 million (U.S.). The retailer cites softer-than-expected sales, margin weakness and expense growth of roughly 12 percent in the past six months. Walmart ushered in new leadership this summer for Massmart appointing Mitch Slape as president and CEO for the African retailer.
Source: Talk Business
CHINA: Aldi and Costco test China's retail appetite
Low cost supermarket chains like Aldi and Costco are making inroads into China's retail landscape, according to reports. Aldi in early June opened its first two locations in China after selling to the country's consumers through Alibaba Group Holding's Tmall Global e-commerce platform since 2017. U.S.-based Costco Wholesale, which has had a Tmall presence since 2014, is set to open its first brick-and-mortar store in China at the end of August. Netherlands-based grocery chain Spar in May announced plans to expand its Chinese footprint to around 1 million sq. meters. The companies are being cautious, however, noting the difficulty other Western retailers like Tesco, Lidl and Carrefour have had in the Chinese market. Therefore, the new expansions are only moderate. Unconfirmed German media reports said Aldi plans 10 more openings in China this year, with a medium-term target of 50 to 100 locations. Analysts say the fortunes of foreign retailers in China depend on their ability to adapt to local consumer preferences.
Source: Nikkei Asia
