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26 Jul / 2010    Alliance-Boots to Acquire Hedef Alliance
 

Alliance-Boots is in the process of acquiring Hedef Alliance (Hedef), a Turkish-based drug wholesaler.

  • Alliance-Boots, which already holds a 50% stake in Hedef after two separate investment deals in 2001 and 2002, will look to use this acquisition to tap the drug markets in Africa and the Middle East.
  • Hedef’s business portfolio also includes a stake in United Company of Pharmacists, a leading pharmaceutical wholesalers in Egypt.
  • Stefano Pessina, Executive Chairman of Alliance-Boots, stated that the deal was of significant importance since the privatization of the firm three years ago: “The move will represent a shift in focus to the distribution side of the business, which will be fuelled by a number of upcoming acquisitions.”

28 Jul / 2010    Tengelmann Will Save All But Four Woolworth Stores
 

The insolvency administrator of the German Woolworth business declared that it was possible to negotiate new tenancy agreements for most of the retailer’s 158 stores. This removes the last obstacle to the planned acquisition of Woolworth by retail group Tengelmann. Only four stores will be closed down: The outlet in Bochum will shut for the last time at the end of August, while stores in Kassel, Erfurt, and Kaufbeuren have already been out of business since late June.

23 Jul / 2010    Tesco to Open First Ever Standalone F&F Outlet in Prague
 

Tesco is planning to open its first ever standalone F&F clothing brand outlet in the capital city of the Czech Republic, Prague, in October 2010.

  • The store will be branded as F&F and will not mirror Tesco’s name on the store’s fascia. F&F’s exclusive outlet will sprawl across 5,920 square feet and will debut with the autumn collection.
  • Jason Tarry, F&F Clothing International Chief Executive, said: “In central Europe, F&F is seen as a fashion brand in its own right. Clear marketing and point of sale have established a brand awareness of 71% across central Europe. Creating a standalone F&F store is a logical next step for this growing brand.”
  • Currently, Tesco’s F&F brand is sold only in hypermarkets and department stores. A successful rollout of the standalone F&F outlet could further see the launch of similar outlets in neighbouring countries such as Hungary, Poland, and Slovakia.

 
 

Corporate Retailer News

Aldi Nord
28 Jul / 2010    Founder of Aldi Dies at 88

Theo Albrecht, one of the founders of discounter Aldi, passed away after long illness on 24 July, his family said. Together with his brother Karl, Theo Albrecht invented the discounter retail model, launching the Aldi business in 1961. Shortly after, the business was divided in two, with Theo taking charge of Aldi Nord – until his retirement a few years ago. Theo Albrecht leaves two sons, Theo Jr. and Berthold, who both work for Aldi Nord but not in senior positions.


ASDA / Wal-Mart UK
23 Jul / 2010    ASDA Fixes Minimum Price for Alcohol

In a move to support its stand on alcohol, ASDA has introduced a minimum price policy for over 99% of the alcohol it sells. Under the new policy, a floor price of duty plus VAT will be charged to shoppers who buy alcohol from its stores.

Commenting on the move, Andy Clarke, Chief Executive Officer at ASDA stated, “We would support the development of a Responsibility Agreement on Alcohol. The Courtauld Agreement for reducing packaging and waste has been a great success and has been a real partnership between Government and industry and would be an ideal model for alcohol. We believe that the Government, in conjunction with the OFT, should create a safe and legal space for retailers and the industry to discuss how to tackle alcohol misuse in the UK.”


Best Buy
28 Jul / 2010    Carphone Warhouse Reports Good Start for Best Buy UK

Carphone Warehouse CEO Roger Taylor said: "We are delighted with the launch of the first three Big Box Best Buy stores in the UK - the customer response is excellent". The Best Buy branded stores in Thurrock, Hedge End and Merry Hill opened in Q1, with a further three stores scheduled to open later in the year. Taylor added that the big-box electrical retailer would also launch online trading in October. Taylor is confident that Best Buy will successfully manage recent executive changes announced earlier this month, with Andrew Harrison replacing Paul Antoniadis to take on overall responsibility for the retailer's UK launch.

The Carphone Warehouse business also had a good start to the year, with total group revenues growing by 2.7% in Q1. European results have seen like-for-like revenues rise by 3.7% in the quarter. Expansion in the US continued in Q1 with a 9.3% increase in stores year-on-year and a 29.7% rise in connections, while European connections rose 1.1%.


Casino
29 Jul / 2010    Casino Reports Q2 2010 Sales Up 8.5%

Groupe Casino reported that net sales for the second quarter (Q2) ended 30 June 2010 increased 8.5% and 2.9% on an organic basis excluding petrol to EUR 6.98 billion. For the first half (H1) sales increased 7.1% to EUR 13.59 billion.France

  • In Q2 2010, sales in France rose 1.1% to EUR 4.37 billion. Organic sales excluding petrol increased 0.2%. H1 sales in France grew 0.8% to EUR 8.59 billion. Organic sales excluding petrol for the same period declined 0.3%.

France Hypermarkets

  • In Q2 2010, sales excluding petrol at the Géant Casino hypermarket division decreased 2.1% to EUR 1.3 billion and H1 sales declined 1.5% to EUR 2.55 billion. Like-for-like (LFL) sales excluding petrol decreased 6.9% in Q2 2010 and 5.8% in H1 2010.
    • Food sales were down 6.9% in Q2 2009.
    • Non-food sales decreased 6.8% in Q2 2010 primarily due to decline in consumer spending, thus the banner refocused its offering on the most promising categories and particularly on small appliances.

France Supermarkets and Convenience Stores

  • In Q2 2010, sales at Casino supermarkets grew 3.2% to EUR 861.7 million and H1 2010 increased 3.4% to EUR 1.66 billion.
    • LFL sales excluding petrol declined 1.0% in Q1 and in H1 2010.
  • Monoprix supermarket sales were up 4.1% to EUR 469.6 million in Q2 and up 3.8% to EUR 939 million for H1. LFL sales excluding petrol increased 1.9% in Q2 2010 and 2.1% in H1 2010.
  • Total sales at the Superettes division for Q2 2010 shrank 1.7% to EUR 370.3 million. In H1 2010, sales declined 1.4% to EUR 720 million.

Discount Divisions

  • Sales during Q2 at the discount divisions, Franprix and Leader Price, totaled EUR 1.03 billion, an increase of 3.2%. During H1 2010, sales totaled EUR 2.01 billion, a decline of 0.1%.
  • LFL sales at Franprix increased 2%, in Q2 2010 and 1.3% in H1 2010. During the quarter, the retailer opened 38 stores in Q2 2010 and 152 new concept stores in H1 2010.
  • LFL sales at Leader Price decreased 1.4% in Q2 2010. For H1 2010, LFL sales decreased 6.1%. During the quarter, the retailer opened 8 stores and continued to roll out its new store concept with 31 stores remodeled at the end of the first half.

Other France Businesses

  • In Q2 2010, sales at other businesses (Cdiscount, Mercialys, Casino Restauration, and Banque Casino) totaled EUR 329.2 million, an increase of 1.9%. In H1 2010, sales totaled EUR 711.1 million, an increase of 4.2%.
  • Organic sales excluding petrol during the quarter increased 7.2% and 6.8% in H1 2010 mainly driven by Cdiscount’s double digit sales growth.

As of 30 June 2010, Groupe Casino operated 9,439 stores in France.International Operations

  • In Q2 2010, Casino’s international sales increased 23.6% to EUR 2.6 billion. During H1 2010, international sales increased 20.1% to EUR 4.99 billion.
  • During H1 2010, organic sales increased 9.8%, with a 12.2% increase in South America and 6.4% increase in Asia.
  • In South America, reported sales for the quarter increased 28% to EUR 1.88 billion. H1 2010 sales increased 24.8% to EUR 3.6 billion.
    • At constant exchange rates, sales increased 7% and 6.8% for Q2 and H1 2010, respectively.
    • LFL sales for Q2 increased 9.1% and for H1 2010, LFL sales increased 9.8%.
    • In Brazil, Grupo Pao d Acucar LFL sales in Brazil increased 11.3% in Q2. Total sales rose 39.4% due to the consolidation of Ponto Frio during the period.
  • In Asia, sales for Q2 2010 were up 17.8%, and 12.1% in H1 2010.
    • At constant exchange rates, sales increased 5.4% and 6.4% in Q2 and H1 2010, respectively.
    • LFL sales increased 4.6% in Q2 2010 and 5% in H1 2010.
  • In the Indian Ocean, sales for Q2 2010 grew 8.5% to EUR 209.8 million while organic sales were up 4.7%. LFL sales increased 3.9%. H1 2010 sales increased 3% to EUR 414.4 million.

As of 30 June 2010, Groupe Casino operated 1,593 international stores.

 

28 Jul / 2010    Casino to Sign Agreement with Crédit Mutuel-CIC

Casino has recently announced that it has signed a long-term partnership agreement with the bank Credit Mutuel-CIC Group to develop financial products and services in France through its Banque Casino subsidiary.

  • Groupe Crédit Mutuel-CIC will acquire a 50% stake in Banque Casino, which is currently 60% owned by Casino and 40% by LaSer Cofinoga.
  • Casino has exercised its call option on LaSer Cofinoga’s shares, which along with 10% of Casino’s current stake, will be sold to Crédit Mutuel. The transaction is expected to be completed over the next 18 months.
  • This project is subject to approval by the regulatory authorities


DSG
28 Jul / 2010    Dixons and Phones4U Close Deal for 50 Store-In-Stores

Dixons (formerly DSGi) and Phones4U signed an agreement to open at least 50 Phones4U mobile phone areas this year in Dixons’ Currys megastores and other DSGi stores.

  • The store-in-store format will be called "Phones4U at Currys."
  • The store-in-stores will be fitted with Nokia-, Samsung-, and Blackberry-branded areas.
  • The store-in-stores offer mobile solutions across all networks and brands.

The format has been tested in two Currys stores since August 2009 and November 2009, respectively, and according to DSGi CEO John Browett has received "overwhelmingly positive feedback" from shoppers.


Jeronimo Martins
28 Jul / 2010    Jeronimo Martins H1 2010 Sales Up 19.6%

Jerónimo Martins reported consolidated sales of EUR 4.04 billion during the first half of 2010, an increase of 19.6% over H1 2009.

  • EBITDA reached EUR 263.8 million, up 20.1% from 2009.
  • Net profit grew 39.4% to EUR 101.7 million.
  • Net debt decreased by EUR 189.9 to reach EUR 752 million.
  • In Poland, Biedronka grew sales to EUR 2.2 billion, an increase of 32% over the same period the previous year. Biedronka’s sales grew 18.1% in local currency with like-for-like (LFL) sales growing 10.5% during H1. Biedronka’s store opening programme led to a 10.8% increase in total space compared to the same period last year.
  • In Portugal, total hypermarket and supermarket retail sales were EUR 1.3 billion during H1, an increase of 9.3% the retailer experienced sales area growth of 1.2% during H1.
    • Pingo Doce LFL sales grew 8.8%.
    • Recheio LFL sales grew 3.1 %.
  • During H1 2010, the retailer opened three new supermarkets and two new cash & carrys in Portugal. In Poland, Biedronka opened 67 new stores during H1.
  • During H2 2010, the group is focused on new openings in Poland and further remodeling in Portugal.


John Lewis
28 Jul / 2010    Ocado Appoints New Marketing Head

Ocado has appointed Matthew Knight as its first Head of Marketing. The move follows the retailer’s flotation on the London Stock Exchange in July 2010 and its digital marketing drive to be launched in September 2010.

  • In his new role, Matthew will be responsible for Ocado’s marketing strategy and customer analytics. He will report to Jon Rudoe, Head of Retail at Ocado.
  • Matthew joined Ocado as a consultant in March 2010. Prior to Ocado, he served in several strategy roles at loyalty scheme Nectar for seven years.
  •  


Magnit
28 Jul / 2010    Magnit to Open 30th Hypermarket

Magnit has opened its 30th hypermarket in Russia in the last four years. The new store has a selling area of over 2,600 square metres 18 checkouts, and an assortment of roughly 60% food 40% non-food.

23 Jul / 2010    Magnit to Open a 3,500th Convenience Store in 12 Years

Magnit is opening its 3,500th convenience store in Russia. The first store was opened in 1998 when the company entered the food retail market.


Metro Group
27 Jul / 2010    Metro Launches Smaller Format in Ukraine

On 21 July 2010, Metro Cash & Carry launched its first smaller wholesale store called Metro Baza in the Ukraine. The outlet has a selling area of about 2,000 square meters and targets mini markets, kiosks, and convenience stores.

23 Jul / 2010    Jeroen de Groot Appointed General Director of Metro Cash & Carry Russia

Jeroen de Groot has been appointed to the position of general director of Metro Cash & Carry Russia commencing 1 August 2010.

  • Currently, de Groot is the regional managing director of the central eastern part of Metro Cash & Carry International.
  • Akin Bayer, currently general director of Metro Cash & Carry Russia, will take over the position of general director of Metro Cash & Carry Turkey form the 1 st August 2010.

de Groot began his career at Metro Cash & Carry Netherlands in 1992 as a manager of the Trading Centre.

  • In 1994 he was appointed to the position of sales director of Makro Thailand and later in July 1998 he was appointed sales director of Makro Belgium.
  • de Groot left Metro in 2000 but returned in 2003 as the sales director of Makro Cash & Carry Netherlands.
  • From September 2004, he was appointed sales manager of Makro Cash & Carry Poland and later in 2006 he became general director of Makro Cash & Carry Poland until 2008.


Rewe Group
23 Jul / 2010    Penny to Centralize Fresh Foods Buying

As LZ.net reports, Rewe’s discounter chain Penny Markt plans to set up a cross-national buying concept for fresh foods.

  • Under the current system, Penny buys fresh foods in the respective local market from domestic suppliers.
  • In the future, the international buying team will procure the core fresh food categories centrally from a smaller number of suppliers. For country-specific products, on the other hand, Penny will still rely on domestic distributors.
  • Penny explained that a more centralized buying model is needed to cope with the increasing internationalization of the business. Penny has international operations in Austria, the Czech Republic, Hungary, Italy, Romania and Bulgaria.
  •  


Sainsburys
29 Jul / 2010    Sainsbury’s Installs Automated Pharmacy Kiosks

Sainsbury’s has announced the installation of Asteres-automated pharmacy kiosks, also known as express prescription kiosks, for speedy deposit and collection of National Health Service (NHS) prescriptions. Asteres is the US-based manufacturer of automated finished prescription pick-up machines for retail pharmacies.

  • The express prescription kiosks will enable shoppers to deposit and collect their NHS prescriptions swiftly without waiting in a queue even when the pharmacy is closed.
  • Shoppers can use the service after registering at the vending machine, which includes creating a username and password.
  • In addition, shoppers will also have an option to group and collect the prescriptions of their entire family for pick-up at the same time.

According to Sainsbury’s professional services manager, David Gilder, "The vending machines provide a secure and convenient way for customers to obtain prescribed medication at a time that suits them. At the same time, we also know that our customers value the option of speaking to a pharmacist, so this is an additional service for customers who may prefer it."

29 Jul / 2010    Sainsbury’s Appoints New Estates Manager

According to Property Week, a UK-based business-to-business magazine, which reports on the worldwide commercial and residential property market, Sainsbury’s has entered into a contract to appoint US-based real estate corporation, CB Richard Ellis, as its estates manager. The new contract replaces the retailer’s previous estate manager, NB Real Estate.

Commenting on the partnership, "We are looking forward to working with CBRE as estate managers as Sainsbury’s progresses its planned expansion programme."

28 Jul / 2010    Sainsbury’s Finance to Offer Online Protection Services

Sainsbury’s Finance has announced a partnership with Prevx, the UK-based Internet and PC security company, to avail its online protection services.

  • Under the terms of agreement, the retailer’s online banking shoppers will be able to download Prevx’s SafeOnline software free of charge.
  • The software will enable users to protect their personal information including log-in details and credit card numbers while surfing.
  • In addition, Prevx will also guide and offer shoppers online safety measures for preventing fraud.


Schwarz Group
27 Jul / 2010    Lidl Offers Mobile Phone SIM Card

Discounter Lidl has launched its own mobile phone tariff in its home market Germany. Lidl thus follows other German retailers who have been offering mobile phone deals for years. Lidl provides the service in cooperation with Fonic, a sub-brand of mobile phone operator O2. The prepaid SIM cards can be topped up by standing order or at any Lidl store, where shoppers can buy vouchers of either EUR 15 or EUR 30.


Systeme U
26 Jul / 2010    French Consumption Sees Decrease in June

The National Institute of Statistics and Economic Studies, INSEE, has reported that French household consumption of manufactured items decreased 1.4% in June compared to May 2010.

  • Purchases of housing equipment shrank 3.6% in June 2010.
  • Spending on leather good decreased 5% during the same period.
  • Over the year 2010, consumption in manufactured items slightly increased 1.2% in France.
  •  


Tengelmann
28 Jul / 2010    Tengelmann to Invest in E-Commerce Start-Up

German retail group Tengelmann will acquire 10% of a newly established online retailer called Youtailor.de. The Web store allows shoppers to design their own clothing, and have it sewn and delivered. In February, Tengelmann already took over 10% of e-commerce businesses Brands4friends and Zalando. Recently, the retailer also bought 49.9% of shares in Baby-markt.de.


Tesco
29 Jul / 2010    Tesco Expands Its Back-to-School Range

Tesco has expanded its back-to-school range with 27 new products in the schoolwear range. The retailer has also frozen the prices of uniforms to the previous year's level. Further improvements to the range include bigger pockets, adjustable waists, and sealed hems.

Jan Marchant, Tesco Clothing Buying Director, commented on the expansion: "Tesco is launching our best ever school uniform, with more quality features and benefits than ever before, whilst still keeping at last year’s amazing prices. Parents are telling us now that features like adjustable waist bands and kid-proof sealed hems on trousers are important – so it’s now available in our Standard range from as little as 3 British pounds. We want kids to grow out of our uniform before they wear it out."

26 Jul / 2010    Tesco Launches New Credit Card Offers

Tesco has intensified its efforts to grow in the UK financial services market.

  • The retailer is offering a 13-month 0% interest rate deal, the longest credit period at present, on purchases made through the Tesco Clubcard credit card. Card holders also have access to a nine-month interest-free balance transfer.
  • The card will also act as a Tesco Clubcard and allow shoppers to collect reward points on purchases made in Tesco outlets. Shoppers will receive one point for every GBP 1 spent. The purchase of groceries will earn shoppers double points.
David McCreadie, Commercial Banking Director at Tesco Bank, stated: "By extending our 0% purchase offer, our cardholders will benefit from the longest introductory free purchase offer currently available in the UK as well as earning points whenever they use the card."

23 Jul / 2010    Tesco to Extend Online Wine Offer

Tesco has announced that it is planning to increase its wine range through its online business, Wine by the Case.
• Currently, the retailer has roughly 300,000 active shoppers (those that have shopped the site in the last 12 months) who make three to four purchases per year. The average transaction size is GBP 134.
• Tesco’s online wine business has roughly 40% market share and had sales of GBP 58 million in 2009, an increase of 12%.


Tesco Europe ex UK
27 Jul / 2010    Tesco Poland Partners with Call2Action

Call2Action has announced a partnership with Tesco in Poland to install 1,500 in-store advertising screens in 52 Polish supermarkets.


Waitrose
27 Jul / 2010    Waitrose Appoints New Supply Chain Director

Waitrose has appointed David Jones as Supply Chain Director, effective 31 August 2010. Prior to his new role, David served as Divisional Registrar for John Lewis.

  • David has been part of John Lewis Partnership since 1982 and has held various Branch Manager roles in Waitrose.
  • He moved to Buying Services in 1994 and became the Head of Buying Services in 2002.
  • He shifted to Waitrose as the Director of Buying in 2007 and became the Divisional Registrar for John Lewis in 2009.


X5 Retail Group
29 Jul / 2010    X5 Publishes New Supplier Agreement Rules

X5 Retail Group has published a new supplier agreement template, which is aligned to the "law about trade."

  • Now, the new turnover bonus cannot exceed 10%, whereas earlier it could reach 35% for some goods.
  • The fine for undelivered orders is now up to 100%.
  • The fine for not supplying information about the quality of goods or labeling goods on time is of RUR 50,000.
  • The fine for delivering poor-quality goods or for canceling orders has not been specified.

 
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