Germany allows supermarket deal on condition no jobs are lost -
Germany's Economy Minister overturned a decision by the competition watchdog and approved a deal for Edeka, the country's biggest supermarket group, to buy grocery chain Kaiser's, on condition that jobs are not lost. Economy Minister Sigmar Gabriel made it a condition of his approval that jobs at Kaiser's would be safeguarded over the next five years. Rival supermarket chain Rewe, which had also sought to buy Kaiser's from Tengelmann, said it would fight the deal by filing a complaint with a German court. (Reuters)
Turkish BIM’s profits up 50%
Discount Turkish retailer BIM stated that their net profit for 2015 increased 48% and stood at 583.1m lira, reports dunya.com. The company released their financial reports 8 March, according to which sales increased 21% in 2015, totalling 17.4bn lira. The report stated that 470 new stores were opened in 2015 and EBITDA totalled 865m lira, marking an increase of 40%. The total number of BIM stores in 2015, reached 4,972. BIM opened 56 new stores in Morocco, bringing the number there to 279; in Egypt, 59 new stores were opened bringing the total number there to 140. The retailer aims to invest 700m lira in the chain this year and is planning to open 600 more stores. They aim to open 80 more in Morocco and 100 more in Egypt. (1 Turkish Lira=0.35 US Dollar)
US: Smart & Final sees expansion beyond the West -
As Smart & Final converts 33 acquired Haggen stores in Southern California to its own banner over the next year, it is contemplating growth beyond its existing geography in six Western states, a company executive told investors Tuesday. The company sees additional growth opportunities throughout California, Nevada, Arizona, Oregon, Washington and Idaho. (supermarketnews.com)
Whole Foods plans new Chicago-Area DC
Whole Foods has a new distribution center in the works, to be located in the Chicago area’s Pullman, IL. "Our new Pullman distribution center will not only let us more conveniently serve our 25 Chicagoland locations, it also gives us easy access to our stores all across the Midwest," Michael Bashaw, Midwest Regional President for Whole Foods, said in a statement, according to the Chicago Tribune. The new distribution center is expected to open in early 2018, serving up to 70 Midwest stores as it continues to grow its footprint in the region. (andnowuknow.com)
Jumbo launching home grocery delivery in Albert Heijn fight
Supermarket chain Jumbo finally decided to start a home grocery delivery service, something that competitor Albert Heijn has already been doing for years, RTL Nieuws reports. The Jumbo franchisees authorized the home grocery delivery service on Wednesday night. The service will start out in parts of Utrecht and Eindhoven. It will later be extended to Noord-Limburg, Nijmegen and large parts of the Randstad, among others. (nltimes.nl)
Co-op may not have enough fresh fruit and veg next week
Unite says Co-op stores nationwide will be seriously affected as the drivers walk out for 48 hours, from 00.01 on Monday. The strike, which includes drivers based at the regional hub in Chester-Le-Street, will be accompanied by a continuous work-to-rule.
However, the Co-op management have disputed that availability of produce will be affected. A spokesperson said: “Product availability will be unaffected by the proposed strike and we are in talks with the union at ACAS tomorrow to resolve the matter.” (sunderlandecho.com)
AU: 7-Eleven appoints new CEO
7-Eleven Australia has appointed a new CEO as the embattled convenience store chain battles to recover from last year’s wage scandal. Chairman Michael Smith announced this morning that Angus McKay, formerly the Managing Director of Skilled Group Limited, would take up the position from today. (news.com.au)
Israel: Consortium bidding for Mega loses key member
The consortium of small supermarket chains bidding to buy the food retailer Mega looked in danger of collapse after the biggest member of the group dropped out and a chain the group hoped to recruit in its place declined to join. Machsanei Lahav said on Thursday that it was quitting the group of 13 grocery chains, saying it was dissatisfied with the terms of the offer. “In the last day we were given the paperwork connected with the structure of the group. After giving it some thought, we decided the proposed framework was not the way to go into the auction,” said CEO Ido Mor. (Haaretz)
Growth at French Intermarché and Netto
In Europe, Intermarché and Netto reached a turnover of EUR33.1bn excluding fuel; this represented a 0.7% increase on 2014. The 1,849 Intermarché stores in France also registered a 0.7% increase in turnover. The Express format is the main focus for development, particularly in the Paris region. Netto's turnover was up 1.9%, at constant exchange rates, with what the retailer called a "remarkable" increase in customer traffic. Internationally, turnover was up 2.5% in Poland and 1.3% in Belgium. (asia.nikkei.com)
China's New Hope eyes 7-Eleven network beyond Chongqing
New Hope Group is considering expanding the 7-Eleven convenience store business it operates with Japanese partners to strengthen its ties with the consumer market, the chairman of the Chinese company said. Noting that the stores serve as a channel linking its products with the market, he said that the company is thinking about opening stores in other cities mainly in the southwestern region, including Sichuan. (asia.nikkei.com)
Sonae posts turnover of €5bn in 2015
Portuguese retail and communications group Sonae has posted a consolidated turnover of €5.01bn in 2015, an approximate 1% growth year-on-year. The group's food retail arm, Sonae MC, which operates the Continente hypermarket chain, benefited from a store refurbishment initiative, the company said, 'with eight out of 40 hypermarkets partially or totally renewed as of December 2015'. (esmmagazine.com)
French Biocoop will have more than 400 stores this year
French organic retailer Biocoop has ended 2015 with a 17% increase in turnover, to EUR768m, and 383 stores. Biocoop, which is celebrating its 30th anniversary this year, opened 33 new stores in 2015 and plans 40 in 2016 to take it over the 400 mark. As well as expansion, Biocoop is committed to supporting organic farming and responsible consumption; these are core to its philosophy. (esmmagazine.com)
AU: 'Big retailers feel the pressure of new challengers – including Aldi'
Dominant retail giants Wesfarmers – owner of Coles supermarkets – and Woolworths hold a 70% of market share of Australia’s fresh food grocery market, but have had contrasting fortunes over the past few years. Half-year results for Wesfarmers and Woolworths for 2016 show very different outlooks. Please, click here to read the article.