Système U - Auchan alliance threatens EU-retailer
Reliance Retail, a part of Reliance Industries (RIL), shuttered over 100 stores, primarily in value (food and grocery retailing) and jewellery formats in fiscal 2015, dnaindia.com reports. The unit reported an 116% increase in operating profit (Ebitda) at Rs 784 crore in 2014-15. The value format is the biggest revenue generator for Reliance Retail, contributing approximately 54% to revenues of Rs 17,640 crore last fiscal.
Carrefour considers taking over Billa supermarkets in Romania
French retailer Carrefour ponders taking over the local operations of supermarket network Billa, romania-insider.com reports. Mega Image also considered the transaction, but withdrew from the race. The deal could amount to EUR 70-90mn, according to market sources, cited by local Ziarul Financiar.
US: Derderian to succeed Stolarz as Foodtown president
Allegiance Retail Services and Foodtown said Thursday that John Derderian has been named the new president of the companies, effective June 1, supermarketnews.com reports. Derderian, who is currently VP – sales/marketing/member development for Allegiance, will succeed Michael Stolarz, who will remain as a senior advisor to Allegiance, its board of managers and its executive management team through the end of the year to ensure a smooth transition in the succession plan.
Carrefour launches e-commerce service in Italy
Carrefour Italia has launched Click & Collect, a new service, available in 150 stores, that allows users to order groceries online and receive them at home within two hours, esmmagazine.com reports. The service is free if the bill is over €70 and customers can also opt to collect the goods at the point of sale. The bill can be paid in cash and therefore an online transaction is not required. The digital interaction is even possible at the point of sale, as with the use of QR codes it is possible to access the ecommerce site without having to type in and search for the addresses. Allegiance Retail Services and Foodtown said Thursday that John Derderian has been named the new president of the companies, effective June 1.
Increased Système U - Auchan alliance threatens European retailers
French retailers Auchan and Système U have announced they will collaborate on a deeper level, a move that terrifies its European competitors. Legally speaking, it may not be a merger, but it could practically turn out to have the same effect, retaildetail.eu reports. The numbers five and six in the French market had already joined forces when purchasing brand products, but will now also do the same for their private labels. Their joint spending power will reach 50bn euro on a yearly basis. Both groups will also create a joint-steering committee, which will have power to steer both networks if there are unanimous decisions. Both chains will also exchange a large number of stores: 247 Simply Market-branded supermarkets, which belong to Auchan, could transfer to Système U and be re-branded into franchise Super U supermarkets, while 70 Hyper U hypermarkets could possibly be turned into Auchan franchise stores. There are very clear reasons for the collaboration: French retail margins are under pressure, particularly because of E.Leclerc's aggressive price tactics.
US: Tops’ first-quarter loss shrinks from year ago
Tops Markets’ first-quarter sales dropped following some pharmacy closings and a decline in fuel prices, but the chain still reduced the size of its net loss from a year ago, buffalonews.com reports. The supermarket chain on Friday reported net sales of $723mn, down 4.5% from a year ago. The chain’s operating expenses declined 4%, and its operating income jumped 66% from last year.
US: Sales of supermarkets grew by 15.2%
Supermarket sales are on the rise and the “2012 Census of Retail Trade” has stats to prove it, produceprocessing.net reports. According to preliminary findings of the U.S. government’s census, supermarket sales outpaced overall retail sales between 2007 and 2012. Sales of supermarkets and other grocery stores, excluding convenience stores, grew by 15.2% during the five-year period — nearly twice as much as all retail trade, which grew by 7.8%, according to the study. However, sales at warehouse clubs and supercenters increased 25.1% during the period. Sales of all groceries and food at supermarkets declined to 58.7% in 2012, compared with 60.2% in 2007. Sales of groceries and food at warehouse clubs and supercenters rose slightly to 22.9% in 2012, compared with 22% in 2007 — a shift resulting from the decline of Kmart and the flattening of grocery sales at Walmart and Target, according to David Rogers, president of DSRMarketingSystems, Northbrook, Illinois. Groceries and food represented just over 70% of total supermarket sales in 2012, compared with 73% in 2007.
Mind your language: Heritage this and heritage that
The most overused word in supermarket fruit and veg departments. Click here to read the article.