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7-Eleven to enter Vietnam by 2017 | How Dixy replaces banned imports

Carrefour first-half profit rises as Spain leads Europe gain

South-Korea: MBK said to team up with goldman in $6bn Tesco Korea bid
MBK Partners Ltd. plans to team with a Goldman Sachs Group Inc. private-equity fund to jointly bid for Tesco Plc’s South Korean business, which could fetch about $6bn, people familiar with the matter said, bloomberg reports. MBK, North Asia’s biggest independent buyout firm, and Goldman Sachs Principal Investment Area are preparing a binding offer for the Homeplus unit by the Aug. 17 deadline, according to the people. Affinity Equity Partners Ltd., Carlyle Group LP and KKR & Co. have also been invited to bid, the people said, asking not to be named as the process is confidential. Tesco, the U.K.’s biggest supermarket chain, may finalize an agreement with a winning group in early September, one person said.

UK:Tesco gets $61m as retailer settles U.K. MasterCard suit

MasterCard Inc. agreed to pay Tesco Plc $61m as the U.K. retailer reached a settlement as part of a multi-billion dollar lawsuit over credit card fees, Bloomberg reports.

India: Centre opens doors to foreign investment in multi-brand retail
Mega retailers like Walmart and Carrefour will finally be able to invest in India’s multi-brand retail through the foreign portfolio investment (FPI) route, thehindubusinessline.com reports. In a major turnaround, the BJP-led government, so far opposed to foreign investments in multi-brand retail, has decided to allow FPI up to 49% or up to the sectoral cap (whichever is lower) through the automatic route. “This means that foreign investors in multi-brand retail can bring in investments in the form of FPI up to 49% without government approval,” a Department of Industrial Policy & Promotion official clarified.

Rimi Latvia doubled profits in 2014
Retail-trade company Rimi Latvia, which operates the Rimi supermarket chain in the country, almost doubled profits to €23.6m in 2014, reports LETA, according to firmas.lv. In 2013, Rimi Latvia posted EUR 12.18m in profit. In 2014, the company also increased turnover to EUR 740.96m, compared to €672.3m in 2013. The company currently operates 27 Rimi hyper-markets, 40 Rimi super-markets and 46 ''Supernetto'' low-price supermarkets in Latvia.

Metcash accused of trying to thwart Coles deal

Grocery wholesaler Metcash has been accused of organising a supplier campaign to oppose Coles' $100m acquisition of independent supermarket chain SupaBarn, smh.com.au reports. Canberra baker Mick Gubas received a call earlier this month from Metcash who asked him to join a group of SupaBarn suppliers who feared they would go out of business if the Australian Competition and Consumer Commission approved the deal. Mr Gubas, who has been supplying Supabarn and IGA stores with sourdough bread for four years, wasn't the slightest bit interested. "If it [the deal] went through it would be a benefit to my business, not a threat – we have been trying to get into Coles to sell bread," the former restaurateur told Fairfax Media. "There's an opportunity for us to expand our business and get into other stores."
(Please, click here to read further at smh.com.au.)

UK: Marks & Spencer confirms store closures
Marks & Spencer has sparked uproar in local communities by confirming it will close nine shops across the UK, putting hundreds of jobs at risk, theguardian.com reports. The closures include stores in Birmingham, London and Wales and are a result of M&S attempting to modernise its store estate as shoppers switch their spending online. M&S will close three traditional food and clothing shops, one Simply Food store, and five Outlet stores that sell end-of-season clothing.

Russia: How Dixy is replacing banned imports

Retailer Dixy has evaluated the company’s range one year after the introduction of Russia’s embargo against the EU, reports businesspskov.ru. The company say that the share of Russian goods has increased by 10%. The retailer replaced the range of imported fruits and vegetables, 50% of which came from European suppliers, with Russian partners from Moscow, Krasnodar and Stavropol regions, as well as importing from Asia, Latin America, Serbia, Morocco, Turkey and Israel. CEO of Dixy, Ilya Yakubson called the introduction of the embargo last year a shock and said that “overnight it destroyed partnerships which had been created over years.” At the same time, he believes the retailer has produced an ample and good quality range, which they are continuing to work on.

Carrefour first-half profit rises as Spain leads Europe gain
Carrefour SA, France’s largest retailer, reported higher first-half profit as revenue strengthened in Europe, with sales in its home market rising for the third consecutive year, Bloomberg reports. First-half recurring operating income rose 1.3% to €726m, Boulogne-Billancourt-based Carrefour said Friday in a statement. All domestic store formats boosted sales on a like-for-like basis in the second quarter, while growth accelerated in Spain and Brazil advanced 7.1%. Europe accounted for about 70% of Carrefour’s revenue and about 60% of profit. “Carrefour is largely delivering on its strategy,” Bruno Monteyne, an analyst at Sanford C. Bernstein, said in a note. First-half profit was about 1% above the average estimate, he said. While profit fell in France as Carrefour began integrating Dia discount stores it bought back last year, recurring operating income more than tripled in the rest of Europe, led by Spain. Latin American earnings also gained on sales growth in Brazil and Argentina.

France: Carrefour concedes 56 Dia stores
Latribune.fr reports that following the purchase of the Dia supermarket chain, Carrefour is obliged, by the Competition Authority, to concede 56 stores. According to Les Echos, Casino and Auchan could be the main buyers and the Dia brand could disappear entirely and become part of Carrefour’s network of local stores. (26 of the stores will go to Casino and 17 to Auchan). Carrefour bought the 800 or so Dia stores in France at the end of November 2014 for almost €650m. The sale was authorised by the Competition Authority, which obliged the French retailer to sell 56 stores to avoid a dominant presence.

7-Eleven to enter Vietnam by 2017

The retailer has signed a master franchise agreement with Seven System Vietnam Co. Ltd, a company established by IFB Holdings which operates fast food outlets including the Subway sandwich chain in the market, igd.com reports. The business will be supported by 7-Eleven Japan (SEJ), including the development of unique products and identifying store locations. The first store is due to open in Ho Chi Minh City in 2017, with plans to expand to 100 stores by 2020, and 1,000 stores by 2027.

Indonesian Supra Boga and Hero feel the pinch of rising expenses
Supermarket operators PT Supra Boga Lestari and PT Hero Supermarket recorded lackluster performances in the first half of this year as lower revenue growth is exacerbated rising expenses, thejakartapost.com reports. Supra Boga ended the January-June period with Rp 5.8bn (US$0.4M) in net profit, a 33.9% slump from Rp 8.8bn during the same period last year.

Indonesia: Hero's profits go down
Hero Supermarket pocketed net loss of Rp 31.6bn in the first six months of this year, a stark contrast to Rp 94.7bn in net profit during the same period last year. According to its first-half financial report, Hero’s net revenues grew by 15.1% yoy to Rp 7.4 trillion this year from Rp 6.5 trillion last year, lower than 17.1% yoy growth in 2013-2014.

AU: Retail index promises a lift in retail sales

Retailers can expect a slight improvement in year-on-year sales growth in the coming months, according to the AFGC CHEP Retail Index, tandlnews.com.au reports. CHEP Asia Pacific president Phillip Austin said: “The index for retail sales growth in Australia was 4.2% higher in June 2015, compared with June 2014. Australian Food and Grocery Council CEO said: “It’s encouraging to see low interest rates and a pickup in jobs growth rate flowing through to stronger retail sales. In food retailing, growth is lower than other retail sectors, but at 4% or better, remains strong despite softening population growth, and is likely to continue to benefit from improved confidence and ongoing low interest rates.”

Fuji: Supermarket chain reveals increase in revenue

RB Patel Group Ltd has released its audited financial accounts for the year ending June 30, 2015, fijitimes.com reports. The company's financials were released on the South Pacific Stock Exchange yesterday and noted an announcement on the final interim dividend of 10 cents per share to be paid on August 27. The dividend announcement would bring the total dividends paid and declared for the financial year ending June 30, 2015 to 14 cents per share. Meanwhile, the company also revealed a revenue increase of 3.6%, from more than $103million in the past financial year to more than $107million in 2015.

Portugal: Jerónimo Martins: strong growth in key markets
Jerónimo Martins said that consolidated sales rose by 9.8% in Euro terms to €6.6bn and by 9.1% excluding currency effects in the first half, igd.com reports. The retailer saw an improvement in performance in its second quarter, with sales growing by 10.1%, suggesting gradual progress was being made across its operations. During the first six months Jerónimo Martins said that by banner:

Biedronka: total sales rose 11.7% to €4.5bn, with like-for-likes up 2.6%

Pingo Doce: total sales up 4.3% to €1.6bn, like-for-likes up 4.5%, excl. petrol

Recheio: total sales increased 5.0% to €393m, like-for-likes up 4.4%

Although the retailer’s new businesses – Ara in Colombia and Hebe in Poland – continued to act as a drag on profitability, with start-up losses rising to €29m in the first half and set to rise again as it plans to enter a new region with Ara in the third quarter, both enjoyed expansion in store numbers and sales, igd.com reports. Together the two chains generated sales of €103m versus €63m in the same period in 2014. Jerónimo Martins said that it continued to invest in both chains to ‘develop their respective businesses models and value propositions’.

Walmart plans to conquer Africa

Walmart executives recently paid a visit to the Nigerian Embassy in Washington D.C. and met with its Ambassador to the U.S., Professor Ade Adefuye, where they discussed such possibilities, naija247news.com reports. For Professor Adefuye, Walmart’s planned entry into Nigeria is a welcomed development. Speaking on Wednesday to Empowered Newswire, an independent Nigerian news agency, he said the retail giant’s planned foray into his country is an indication of the “growing confidence in Nigeria’s economy.” The Ambassador is currently briefing the Walmart executives on the requirements of doing business in Nigeria.

Chinese Dairy Farm: modest sales growth at H1
Sales for continuing business reached US$6.6bn in the first half of the year, an increase of 3%, or 7% at constant exchange rates, igd.com reports. Underlying net profit declined 14% to $193m. Dairy Farm delivered solid sales growth in the period, reporting like-for-like growth in most of its major markets. In this period Dairy Farm also acquired a 19.9% stake in Chinese grocer Yonghui, and acquired the chain San Miu chain of 15 supermarkets in Macau, boosting total sales including associates and joint ventures by 27% to $8bn. However, the pan-Asian retailer felt pressure from rising costs including rents and wages, as well as food price deflation.

Delhaize's performance by operating segment:
  • Delhaize US: revenues rose by 3.2% (in local currency terms), with comparable store sales growth of 2.5%
  • Delhaize Belgium: revenues fell by 0.3%, with comparable store sales seeing a fall of 0.6%
  • Southeastern Europe: revenues increased by 9.0% (at identical exchange rates), with comparable store sales advancing by 1.6%
Source: igd.com

Interesting links on retail:


DIA: Five reasons to expect medium term growth
Please, click here to read the article.


US: Whole Foods is just another grocery chain in investors’ eyes
Please, click here to read the article.


New Zealand’s supermarkets are totally monopolized by processed junk

Please, click here to read the article.


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