Sonae’s food retail business sees 7% growth in Q2
Portuguese food retailer Sonae MC has reported a 7% annual increase in turnover during the second quarter of 2017, growing to €922m.For the first half of the year, turnover amounted to €1.77bn, which represents an increase of 5.1% year-on-year, and reinforces the retailer's market leadership position.In H1, turnover benefited from a like-for-like sales growth of 0.7%, and also from the opening of six new Continente Bom Dia stores. In Q2, turnover was fuelled by like-for-like sales growth of 2.6%. However, the retailer's underlying EBITDA margin fell to 4.6%, due to a competitive environment and the expansion of its store network through new convenience formats. (esmmagazine.com)
Portuguese shoppers are increasingly preferring quality to promotions, according to the Escolha do Consumidor Consumer Choice survey for the period 2013-2016. Lusa reports that the survey polled 1,937 individuals between the ages of 25 and 60 residing in the greater Lisbon and greater Porto areas. It analysed eight major sectors and more than 40 product categories, revealing that the quality/price ratio remains the main reason consumers choose one brand over another. (esmmagazine.com)
World’s first drone food delivery service launches in Iceland
The world's first operational drone delivery service has launched in Reykjavik, Iceland. Shoppers in the Icelandic capital will now be able to receive food and other goods direct to their doors via an autonomous flying vehicle, which providers say will significantly speed up delivery times. (cnbc.com)
Amazon's acquisition of Whole Foods approved
Amazon.com Inc on Wednesday cleared two of the biggest hurdles it needed to close its $13.7bn acquisition of Whole Foods Market Inc, with approvals from a U.S. regulator and the grocery chain's shareholders. The U.S. Federal Trade Commission said in a statement it would not pursue its investigation into the proposed merger further after reviewing whether the deal would substantially lessen competition or constituted an unfair method of competition. Amazon said it was on track to close the merger, expected sometime this year. Earlier on Wednesday, Whole Foods said its shareholders voted in favor of the deal. (techcrunch.com)
UK: Co-op Group’s grocery sales fall after sale of stores to McColl’s
After more than two years in growth, the Co-op Group’s grocery sales have declined by 0.4%, according to the latest figures from retail analyst Kantar Worldpanel. The Group’s market share fell to 6.3%, down 0.3 percentage points compared to this time last year, which Kantar says is down to the retailer’s sale of nearly 300 stores to convenience chain McColl’s. A spokesperson for the Group said: “Our trading remains strong and the change in sales is a result of the disposal of 298 stores to McColl’s.” (thenews.coop)
SA: Shoprite says Steinhoff stake build won't hurt independence
Shoprite Holdings Ltd. won’t let the purchase of a 22.7% stake in the food retailer by Steinhoff International Holdings NV affect its independence and is on the hunt for acquisitions of its own, according to Chief Executive Officer Pieter Engelbrecht. Africa’s largest supermarket chain will continue to dictate its own strategy, the CEO said in an interview after an earnings presentation in Cape Town on Tuesday. The partnership could even support Shoprite’s expansion due to potential savings in countries where Steinhoff already operates, Engelbrecht said. (Bloomberg)
JD.com, Thai retailer Central in talks for $500m e-commerce JV: sources
China's JD.com Inc is in advanced talks with Thailand’s Central Group to launch an e-commerce joint venture in Thailand with a planned total investment of $500m, people familiar with the matter told Reuters. The venture will help China’s second largest e-commerce retailer expand its overseas business beyond Indonesia and boost its presence in Southeast Asia where rivals Alibaba Group Holding and Amazon are ramping up competition with new services, such as a quick delivery service in Singapore. Indonesia currently accounts for almost all of JD.com's investments outside China, including an e-commerce platform and travel start-up, Traveloka. (Reuters)
Cost cuts help Wal-Mart's South African arm Massmart
Massmart Holdings Ltd, the South African arm of Wal-Mart, reported a small rise in half-year earnings on Thursday, helped by cost cuts as cash-strapped shoppers spent warily. But sales growth, at 0.5%, was slower than earnings growth, an indication that much of the profit increase came from reining in costs. (Reuters)
Schwarz Group eyeing leadership position in Croatia by 2019
Germany’s Schwarz Group, which operates supermarket chains Lidl and Kaufland, could be poised to become the market leader in Croatia by 2019, a study has found. According to Večernji List, there are more than 90 Lidl stores in high traffic locations throughout Croatia, while data from Croatia’s Financial Agency (FINA) released last week showed that Lidl has seen its turnover in Croatia rise from HRK 767m (€103.5m) in 2007 to HRK 4bn (€540m) last year. (esmmagazine.com)
South Africa's Woolworths says annual profit hit
South Africa's Woolworths Holdings Ltd posted its first annual profit decline since 2009 on tough trading conditions at home and in Australia, the upmarket retailer said on Thursday. Woolworths, which sells groceries, food and homeware, said headline earnings per share - the main gauge of profit in South Africa - fell 7.6 cents to 421 cents in the year to June compared to a year ago. A Reuters poll of 12 analysts forecast a 6% drop.(Reuters)
Walmart and Kroger join with suppliers for blockchain initiative
Walmart, Kroger and numerous food suppliers have joined with IBM on a blockchain implementation meant to improve food traceability and to test the budding technology across a widespread rollout, according to Fortune. Dole and Driscoll's have joined the IMB too. (fooddive.com)
Amazon opens its grocery delivery service to Amazon Business customers
Amazon Business, the retailer’s free program for business customers offering fast shipping, discounts and purchase approvals, is now expanding to include grocery delivery from AmazonFresh. That means businesses can stock their employee break rooms with fresh goods, like produce, plus groceries and other items from local stores. (techcrunch.com)