Global grocery 2020: China and US leading | Target may start food delivery

Tesco gets 3 bids of $6bn for Korean chain | Lidl US buy land for DC

US: A&P Thanksgiving Day layoff list grows to 8,500 jobs
The latest round of filings bring the total number of potential layoffs to more than 9,400, for the Great Atlantic and Pacific Tea Company, which operates under the brands A&P, Pathmark, Superfresh and Food Basics in New Jersey, nj.com reports. The number of layoffs—planned for 93 N.J. stores— has significantly jumped since Friday, when the department reported that 3,781 employees at 45 stores would be let go, nj.com reports. More than 8,500 employees at A&P supermarkets across New Jersey will be out of the job by Thanksgiving, according to filings with the state Department of Labor.

Target may join Amazon, Walmart in food deliveries
With competitors such as Walmart, AmazonFresh and Instacart beginning to deliver products directly to consumers, Target has announced, according to The Minneapolis/St. Paul Business Journal, that the company will begin testing the effectiveness of online grocery delivery. The Minneapolis Star-Tribune has recently cited the company’s chief marketing officer Jeff Jones as saying this new service will be offered “in the very near future.” The company has recently begun making their push to appeal to shoppers with a health-conscious mindset. They now offer more organic, natural and gluten-free foods, as well as more granola, yogurt and craft beer, wine and coffee. Target now joins a group of companies, including Kroger, Hy-Vee, and Peapod, in the online delivery industry. (wholefoodsmagazine.com)

US: Target announces new COO

Target has announced John Mulligan as chief operating officer, a newly created role for the retailer, igd.com reports. His first area of focus will be to improve product availability, with Target acknowledging that its in-stock performance has been unacceptable over recent quarters. The existing supply chain is being stretched beyond its core capabilities, and the business will aim to understand what is hampering execution and what quick and comprehensive solutions are required to make it more flexible.

Russia: Kaliningrad retail trade in crisis

In the Kaliningrad region in the January to July 2015 period, retail trade equated to €1 billion- 97.4% of the data for the same period in 2014, reports kaliningradtoday.ru. In July, the turnover amounted to €149 million, compared to July 2014 - 96.1%, and June 2015 - 103.9%. In January-July 2015, 96.2% of the retail trade turnover was formed by trading organizations and individual entrepreneurs operating outside the market, the share of markets and fairs was 3.8%. In the first half of 2015, retail trade chains accounted for 25.8% of the total retail turnover. In January-July 2015 food products, beverages and tobacco amounted to 51.1% of retail trade turnover, non-food products - 48.9%. Kaliningradstat notes that the food produce turnover in January-July 2015 amounted to €57 million, or 100.8% in comparable prices to the level of January-July 2014.

French Carrefour in talks to buy Rue du Commerce
Carrefour said on Monday that it is in exclusive negotiations with real estate group Altarea Cogedim to buy all of French e-commerce company Rue du Commerce to boost its non-food online retail business, Reuters reports.

SpartanNash CEO talks about $15M investment in Nebraska stores
SpartanNash continues to expand its Family Fare model beyond Michigan with the rebranding of six former discount stores in the Omaha market, mlive.com reports. CEO Dennis Eidson spoke about the project during a conference call with analysts on Thursday, Aug. 20, to discuss second quarter results. The Michigan-based grocer "spent somewhere around $15 million in capital" on the Nebraska stores, which opened in July, he said.

Lidl US buys land for distribution center

Nearly 90 acres of Alamance County land where construction is underway to build Lidl's distribution center has been purchased by an affiliate of the discount German grocer as it works toward US expansion, bizjournals.com reports.

French ecology minister to meet with supermarket leaders
Following a law passed in French parliament which prohibits supermarkets from dumping unsold food, France’s minister for ecology, sustainable development and the environment, Ségolène Royal, will meet with supermarket chain heads lsa.fr reports. She will call a meeting with the leaders of large-scale food distribution in France with the hope of contractually binding the multinationals to fight food waste in more specific and comprehensive ways. This will happen, she says, “within ten days.” (esmmagazine.com)

Global grocery 2020: China still leading the way
Chinese grocery sales are set to grow by a third between now and 2020 and reach US$1.5tn per year, according to IGD’s new forecasts. China will comfortably retain its position as the largest grocery market although others will grow faster. Highlights from IGD’s latest sales projections by 2020 included:
  • The grocery sector in India will grow by nearly 80% and be worth just over US$900bn
  • Nigeria’s grocery market will achieve the fastest growth of the largest markets, increasing in value by 85% to hit just over US$300bn
  • The other ‘MINT’ countries will also experience rapid growth – grocery sales in Mexico, Indonesia and Turkey will increase by nearly 40%, 63% and 61% respectively
  • Indonesia’s grocery market will be worth almost as much as the UK’s (ranked 7th in the world); US$351bn and US$352bn respectively


Image: IGD - Please, click here to read more at igd.com.

Tesco gets 3 bids at around $5.9 bln for South Korea unit-source
British retailer Tesco has received three separate binding bids for its South Korean unit from a consortium of Affinity Equity Partners and KKR & Co, Carlyle Group LP, and MBK Partners, people familiar with the matter said, Reuters reports. The bids have come in at around the 7 trillion won ($5.9bn) mark, one of the people said, adding that Tesco is likely to pick a preferred bidder as early as this week. Tesco had set Monday as the deadline for final bids. Homeplus, as Tesco's South Korean unit is called, MBK Partners, KKR, Affinity and Carlyle declined to comment. The people declined to be identified as the sale process is private. The deal is expected to move speedily, with another person having knowledge of the matter saying Tesco and advising bank HSBC could pick the preferred bidder by early September at the latest. "This is a mission-critical deal for Tesco," a third person with direct knowledge of the negotiations told Reuters, adding that the recent global market volatility stemming from China does not help matters as the won depreciates against the British pound and South Korea is seen tied to the Chinese market. (Reuters)

French Lidl to attract supermarket shoppers with high-end wine range
Lidl France is hoping to attract more upmarket shoppers with the launch of a range of high-end wines. The eight additions to its wine offering range in prices between €50 and €120, and include Château Pavie, Chateau d'Yquem, and Château Pape Clément, kamcity.com reports. The wines can be ordered online for in-store collection from a dedicated website that will launch this week. The move is part of Lidl’s upcoming wine fair which takes place between 2-5 September. The move follows a similar strategy used in the UK where the launch of a premium wine range last year helped drive sales up 38%.

Interesting links about retail:

US: Fairway is still in the rough
Please, click here to read more.

UK: Asda expands
Please, click here to read more.

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