Kroger exceeds 1Q profit forecasts

AU: Coles buys independent Supabarn supermarkets
One of Canberra's largest independent supermarket chains Supabarn has announced it is selling most of its stores in the ACT and NSW to Coles in a move that has been labelled a dark day for retailing in Canberra, smh.com.au reports. A spokesman for the Koundouris family that built Supabarn from the ground up said in a statement the move was for family reasons, but the buyout would not mean the chain would disappear entirely from the grocery scene. The move is expected to see a $15m injection by the supermarket giant into upgrades to the Supabarn stores. "Supabarn will not totally exit the market. It will open and operate, as a specialised supermarket retailer in Kingston, and will continue to trade in Gymea, Sydney," a company statement said.

US: Kroger beats 1Q profit forecasts
Kroger Co. on Thursday reported fiscal first-quarter profit of $619m, wcpo.com reports. The Cincinnati-based company said it had profit of $1.25 per share. The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.21 per share. The supermarket chain posted revenue of $33.05bn in the period, which did not meet Street forecasts. Four analysts surveyed by Zacks expected $33.3bn.

German Lidl owner seeks to lift sales by a quarter by 2020
The Schwarz group which owns German discount supermarket chain Lidl wants to increase sales by more than a quarter to 100bn Euro ($114bn) by 2020, its chief executive was quoted as saying on Thursday, Reuters reports. Schwarz group head Klaus Gehrig told Germany's Manager Magazin the growth plan is focused on a big expansion of the Lidl chain and a restructuring of the group's Kaufland hypermarkets, which account for a quarter of sales. "Number one: we want Lidl to get stronger in existing markets. Number two: we will expand to new countries. Number three: we will fundamentally overhaul Kaufland," Gehrig told the magazine.

Value of Scottish retail sales down 3.1% in May
The latest SRC/KPMG Scottish Retail Sales Monitor figures show sizeable falls in both food and non-food sales compared against May 2014, down 2.1% and 3.9% respectively, dailyrecord.co.uk reports.

Google eyes British partnership with firm behind Tesco's Clubcard
Google is considering teaming up with British private equity firm Permira to launch a bid for the business that runs Tesco’s Clubcard, which Tesco's is selling off to help raise £5bn, theguardian.com reports.

Ahold - Delhaize merger required to survive in United States
American specialists believe strong competition on the American East Coast has forced Dutch Ahold and Belgian Delhaize to talk to each other, retaildetail.eu reports. To make sure they can both survive, they will have to merge, these specialists feel. Het Financieele Dagblad quotes McMillan Doolittle's Neil Stern who says that retailers cannot do anything else but merge as there are very few new traditional supermarkets being built. He also issues a warning: "Companies have a tendency to overestimate the cost-saving benefits and to underestimate the time required for integration. Ahold and Delhaize have their own formulas, with their own discount strategies and different competitors."

US: Survey says millennials prefer Walmart
According to a new survey by InfoScout, a consumer reporting firm, Walmart is the most popular store for younger millennial consumers under the age of 24, learnbonds.com reports. The retail giant is even more popular than Whole Foods, Costco, Target and Trader Joe’s among the millennial demographic. For shoppers aged 25 to 34, Walmart is more popular than every other retailer except for Target.

AU: Coles increases range reviews
Coles has confirmed that it is to carry out more range reviews, to ensure that its categories match shopper demand, igd.com reports. The new range reviews will encompass all categories and use Coles' customer data to identify gaps in its ranges. The decision to implement the wider process is as a result of suppliers asking for greater transparency, longer planning periods and earlier notifications on when ranges will be reviewed. In response Coles will hope that the work will help it improve the customer offer, with better availability on its best selling lines and a stronger pipeline of shopper centric new product development.

Carrefour Tunisia offers payment by mobile phone
Leader in Mobile Money solutions (payment via mobile phone), Creova, has announced a partnership with Carrefour Tunisia to pay by mobile phone, africanmanager.com reports. This partnership will help to increase awareness of mobile phone payment services. As a retail leader, Carrefour is continually looking for innovative ideas. “The mobile market is increasing and to be the leader is important”, says Cherif Karoui, Director General of Carrefour Tunisia.

Norway: Ten year partnership with Esso Norway AS
NorgesGruppen has signed a ten year agreement with Esso Norway AS, which will see Norway Servicehandel AS operate 106 Esso shops and car washes throughout the country, igd.com reports. The deal is subject to approval by competition authorities.

Norway: Five Ultra stores in Oslo to be converted to MENY banner
NorgesGruppen has also revealed plans to convert five Ultra hypermarkets in Oslo to the MENY banner, igd.com reports. These stores will enjoy a ‘wide range of products, fresh produce, local food and strong technical expertise’.

Pairing sodas with fresh foods can boost sales: Nielsen
Cross-merchandising and cross-promoting carbonated sodas with produce, meat and deli products can increase trips and lead to more sales, research conducted by Nielsen Perishables Group finds, supermarketnews.com reports. The study found 86% of shoppers who buy yoghurt and 65% of grape buyers also buy diet soda. Retailers could tie diet carbonated soft drinks to healthy snacking to encourage customers to purchase both a beverage and a snack.

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