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Foreign retailers in Vietnam under attack | Woolworths rumoured to be takeover target

Spar collaborates with Holland & Barrett

French supermarkets to test colour-coded 'nutrition logos'
Four colours, four different levels of nutrition. These labels will be added to over 800 products in 50 supermarkets across France. Researchers will monitor people's buying habits, then compare them with those of shoppers in other supermarkets that don't have the nutritional labels on their products. read more

Malaysia: Jaya Grocer chain sold for RM 300 mln
A private equity fund managed by CIMB Private Equity and Mitsubishi Corp is believed to have won the bid to take over local supermarket chain Jaya Grocer. It is believed that the joint venture had paid about RM300mil for the grocery chain, valuing the entity at more than 30 times the price-earnings ratio for this year, according to sources. read more

US: Publix recalls cranberry nut & seed mix
Florida-based grocery store Publix has issued yet another recall for a product sold at its stores due to concerns over possible Listeria contamination. According to the grocery store's website, it received notification of the potential contamination from the walnut supplier, Woodstock Farms, after a routine test showed possible contamination. read more

Germany: Metro core profit bolstered by Media-Saturn cost cuts
Metro reported a bigger-than-expected improvement in quarterly profitability at its Media-Saturn consumer electronics chain on Wednesday, helped by cost cuts as the German retailer prepares to split the business from its food operations. Metro said in March it wanted to separate its wholesale and food business from its consumer electronics arm by mid-2017 to help each focus and grow faster. Metro reported quarterly earnings before interest and tax, before special items, of € 11 mln, on sales down 0.9 percent to 13.57 bln, ahead of analysts' average forecast for a loss of 6 million on sales of 13.54 bln. read more

Philippines: Elections boost 7-Eleven Philippines profit
7-Eleven Philippines stores register first-quarter sales growth on the back of election-related buying. Retail sales of all stores went up by 33.5 per cent to P7.3 billion (US$405 million) from P5.5 billion a year ago. This was driven by opening of new stores and increase in same store sales, which was largely attributed to election-related spending. Philippine Seven opened 55 new stores and closed two to end the quarter with 1655 stores. The company now has 1421 7-Eleven stores in Luzon, 189 in Visayas and 45 in Mindanao. read more

Foreign retailers in Vietnam under attack
Complaints by Ho Chi Minh City businesses about foreign retailers in Vietnam have sparked the prime minister to order an investigation.
Members of the Ho Chi Minh City Union of Business Associations say the growing number of foreign retailers in Vietnam have a loose rein to expand at a pace that will eventually hurt local companies. Vietnam laws forbid foreign businesses to distribute products such as rice, cane sugar and cigarettes, but these items are still available at the supermarkets and convenience stores of most foreign retailers, including South Korea’s Lotte and Big C, Tuoi Tre reports. read more

H-E-B takes third-party route to deliver groceries
H-E-B a supermarket operators in the U.S., is hopping on the online grocery bandwagon. Yesterday, H-E-B announced it was partnering with both Shipt and Instacart to offer online ordering and home delivery of groceries to customers in its home market of San Antonio, TX. Both regular H-E-B stores and the company's Central Market concept are now participating. Customers who use Instacart have the added option of being able to order alcoholic beverages, as well. read more

Hong Kong’s retail sales decline may have bottomed out
China’s central bank policy this year has been to peg the value of the yuan to the US dollar – the same currency the Hong Kong dollar is pegged to. This means that since January, the yuan’s value relative to the Japanese yen has fallen 11.1 per cent, and to the Malaysian ringgit by 6.7 per cent. Last year the yuan fell against the Hong Kong dollar, making alternative destinations more attractive for cashed up Mainland Chinese shoppers who chose Japan, Korea or Europe instead, possible due to relaxed visa conditions. read more

Thailand retail growth trails other destinations
Thailand’s first-quarter growth in the retail industry was 2.6 per cent – failing to hit the Thai Retailers Association projection of 3 per cent. President Jariya Chirathivat says same-store sales growth for several retail formats declined year-on-year, particularly hypermarkets and convenience stores. She says retail consumption has weakened because of declining farm product prices hitting the purchasing power of middle- and low-income consumers. read more

Ingles sales, earnings up in 2Q
Ingles Markets reported slight increases in sales and earnings for the fiscal second quarter ended March 26, benefiting in part from an early Easter holiday. Sales of $924.3 million improved by 1% as compared to the same period last year helped in part by Easter sales falling in the second quarter this year vs. the third quarter last year. Excluding gasoline sales and the effect of the Easter holiday, quarterly comparable-store sales improved by 1.6%. Gross profit as a percent of sales increased to 24.7% from 23.9% for the March 2015 quarter. read more

Eroski To Invest €35 Million In Balearic Islands Stores
Spanish supermarket chain Eroski plans to invest €35 million over the next three years, to restyle its supermarkets in the Balearic Islands, the company has said. The new 'Contigo' concept gives priority to local fresh products. The supermarkets that have already changed their banner to Contigo, have reported a more than 7 per cent growth in sales, according to the company. A company spokesperson said that the 'Contigo' model allows company to respond effectively to consumer's needs. read more

Konzum Named Best Croatian Retailer
Croatian grocer Konzum has been named the best retailer in the country at the 'Golden Basket' ceremony, hosted by Ja Trgovac magazine. The Agrokor-owned retailer was selected after judges rated its performance in business improvements, successful strategies, sales and profit figures, and other business-related areas. read more



Spar UK collaborates with Holland & Barrett
Holland & Barrett's products have been made available in three of Spar's Northern Irish stores, but the goal is to expand the pilot program to other stores in Northern Ireland. Soon, another 10 stores will sell Holland & Barrett's products as well. read more

Woolworths rumoured to be takeover target
Woolworths is rumoured to be a takeover target for a private equity giant. Global private equity giant Kohlberg Kravis Roberts has been rumoured to be eyeing Woolworths as a potential takeover target. Woolworths has declined to comment on the media report that it is a takeover target for private equity giant Kohlberg Kravis Roberts.

UK: Lidl recalls potato wedges over allergy concerns
Supermarket Lidl has been forced to recall bags of potato wedges after a labelling error failed to mention a potential allergy risk. The chain has recalled bags of Harvest Basket Potato Wedges as the package fails to declare in English that the product contains the allergen gluten. read more

UK: Costco recalls its Organic by Nature Organic Vegetable Medley 
Costco has told buyers of "Organic by Nature" Organic Vegetable Medley packets to destroy the contents due to a possible contamination of listeria. Costco's decision comes after a company in the US recalled some of its frozen veg products - including the Organic by Nature packets - after they were linked to an outbreak of listeria. The bags of potentially lethal frozen veg contain runner beans, carrots, sweetcorn, and shelled edamame beans. read more
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