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Walmart warns suppliers about labels | AU grocery revolution goes on

SuperValu might spin off fast-growing Save-A-Lot business

German Lidl and Aldi chew into the 'Big Four' British supermarkets
Aldi and Lidl have grabbed a record share of the grocery market as sales fell at the big four supermarkets, express.co.uk reports. Takings at the German rivals soared by 16.6% and 11.3% respectively and account for a combined 9.6% share in the 12 weeks to 19 July, according to Kantar Worldpanel data.


Source: Kantar Worldpanel / edited by igd.com

Mexican Oxxo: new stores drive revenue growth
Total revenues were up 31.4% in Q2, compared to Q2 2014, reflecting 258 net new Oxxo stores and the incorporation of Oxxo Gas operations, igd.com reports. On an organic basis, total revenues were up 13.5%. FEMSA Comercio now operates 13,256 Oxxo. Same store sales were up, on average, 5.3% in Q2, showing a gradually improving trend.

US: SuperValu considers spinning off fast-growing Save-A-Lot business
SuperValu Inc said it was exploring a spinoff of its discount grocery chain Save-A-Lot into a publicly traded company as the retailer looks to insulate the fast-growing unit from its slower-growing grocery wholesale and food retail businesses, Reuters reports. Shares of the company, which also reported better-than-expected quarterly profit and sales, rose as much as 17% in early trading on Tuesday. SuperValu's Save-A-Lot business has been growing in the past seven quarters, while its grocery wholesale and food retail businesses have not seen sales growth in at least four of these seven quarters. Save-A-Lot, a no-frills grocery chain, accounted for about 26% of SuperValu's total revenue in the first quarter. The company did not specify a date for a spinoff. Net income attributable to SuperValu rose 42% to $61m, or 23 cents per share, in the quarter ended June 20. Net sales increased 2.7% to $5.41bn.

US: Walmart warns its suppliers over labeling laws

Walmart Stores Inc. last week sent out a memo to hundreds of suppliers from Kraft Heinz Co. to Nestlé SA warning them to comply with labeling laws, emphasizing that the amount inside a package matches what is printed on the outside, wsj.com reports. The memo, reviewed by The Wall Street Journal, is a direct response to some retailers being accused of overcharging customers by overstating how much of a product they are selling, a person familiar with the matter said. It also comes as corporations and district attorneys are closely monitoring that suppliers are obeying all labeling and packaging rules, and are quick to file suit if they’re not. “This is a reminder to our suppliers to make sure their labeling matches what’s in the product,” Walmart said. “We want our customers to know they can have faith in the products they buy at Walmart.” Please, click here to read more at wsj.com com.

India: E-grocer Bigbasket.com to focus on household items
Online grocer BigBasket.com will focus on selling merchandise now, business-standard.com reports. The e-tailer has added some 3,000 household and kitchenware products across cutlery, crockery, kitchen utensils, storage containers, lunch and snack boxes, water bottles, festival decoratives, etc.

Australian grocery market revolution continues: survey

Overseas competitors continue to eat into the dominance of the Australian grocery market traditionally dominated by the duopoly of the Woolworths and Coles chains, china.org.cn reports. The annual AU$90bn Australian sector is increasingly being taken by privately owned German super-discount chain Aldi and the independent IGA group, according to a report released on Wednesday. Woolworths and Coles have long countered their rivals by claiming superior quality of produce, but a survey of shoppers by global financial services company UBS put both giants at the bottom of the quality list. The survey found sales are expected to slow at Woolworths - which recently shook up its executive team after declining market share and profits - at faster rate than its rivals. "There continues to be strong support from shoppers for a high- quality fresh offering, with our respondents ranking Aldi best, then IGA (independent chains), Coles and Woolworths last," the UBS report stated. It also detailed how 40% of Coles and Woolworths customers were prepared to abandon their loyalty to them. (source: china.org.cn)

Mexico: La Comer: affected by timing of promotions
Same store sales were down 0.4% in Q2 at La Comer, as the promotional campaign Julio Regalado started earlier last year to take advantage of the World Cup, igd.com reports. Net sales were down 1.6%, excluding Restaurantes California which was divested in March 2015 and which accounted for nearly 2% of total revenues in Q2 2014. La Comer also has three fewer stores in Q2 2015 than a year ago.

Mexican Soriana: improving economy boosts performance
Soriana said performance in the Mexican economy was much better in the second quarter and consumption appears to be recovering, igd.com reports. Consequently all store formats did well, particularly the low price and promotion-focused formats like Soriana Mercado, Soriana Express and City Club. Total revenues were up 8.3% in Q2 and same store sales rose 6.1%.

Dutch Jumbo refocusing on ELDP efforts

Jumbo’s CEO, Frits van Eerd, has said that the retailer is set to return more forcefully to its EDLP roots as 2015 progresses, following the completion of the integration of the C1000 operations, igd.com reports. Van Eerd said that customers are looking for a more price focused offer that is clearly stated and easy to understand, noting that the retailer had more work to do over the next 18 months to drive efficiencies in its supply chain to underpin such developments. However, he also noted that the range would not be shrunk as a way to drive productivity and that instead the range is likely to grow ‘substantially’ following a category-by-category range review.

UK: McColl's Retail Group reveals results
Major national convenience retailer, McColl's Retail Group has announced interim results for the first half the 2014/15 financial year, revealing total sales up 3.4%, boosted by the expansion of its store network through the acquisition of 25 stores, igd.com reports. However, like-for-like sales fell by 1.9%, impacted by the ongoing deflation in the UK food and drink retail sector, and the highly competitive environment.

Zimbabwe: OK Zimbabwe records decline in sales

OK Zimbabwe Limited says net sales for the quarter ending June 30 were lower than budgeted and declined against the previous year by 7,5% due to the deteriorating macro-economic environment that spawned declining consumption and falling prices, allafrica.com reports. In the year ended March 31, OK saw its profit declining to $7,5m from $9,6m in the previous year. Total revenue for the company was $462,7m from $483,6m in the previous year.

UK: Morrison announces board change (again)

The UK's fourth biggest grocer by market share, which in January ousted Dalton Philips and replaced him as CEO with former Tesco director David Potts, has announced yet another change to its board, which is becoming barely recognisable from a year ago, Nathalie Thomas writes. Belinda Richards, a serial non-exec, who is also on the boards of Grainger and Aviva UK Life & Pensions, as well as serving on the advisory group of audit committee chairmen at the Financial Reporting Council, will join the board of Morrison on September 1. Ms Richards will replaced Philip Cox, who will leave Morrison's board after a six and a half year term, ft.com reports.

UK: Tesco wants to create healthy image by banning sugar

Tesco, the British grocery giant, has announced plans to stop the sale of sugary drinks aimed at children, includingCapri Sun and Ribena, thedailymeal.com reports. These items will be replaced by beverages that do not contain any added sugar. “This is part of our 10-point plan against obesity and we have decided that from September we will only sell no-added-sugar drinks in the kids' juice category,” beverage manager David Beardmore told The Grocer magazine. “Most of the suppliers are supportive of it and understand what we are doing.”

Mexican Chedraui: same store sales and new outlets enhance results
Revenues increased by 11% in Q2, driven by same store sales and new outlets in Mexico and the USA, igd.com reports. Eight new stores opened in Mexico over the past year and four in the United States, meaning a 1.8% increase in sales area. Chedraui's same store sales for the quarter were up 4.3%.


Interesting links about retail:

France: Leclerc to open hybrid drive
Click here to read the whole article.


Why supervalu would spin-off Save-A-Lot

Click here to read the whole article.








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