English news 15 octobre 2007
ALDI Hofer launches price cutting campaign in Slovenia
In an unprecedented move, Aldi's Hofer discount banner in Slovenia has launched a price cutting campaign that is limited to 10 days. The discounter is providing a 44% rebate on 15 select items from its standard ambient range, including chocolate bars, instant coffee and cereals. It is the first time ever that Aldi has turned its back on its rigid EDLP (everyday low price) strategy which has bee at the very heart of its pricing philosophy to build up consumer trust. So far, price cuts and increases at Aldi have always been permanent price changes.
ASDA takes on new man for Living strategy
As reported in Retail Week, Asda has appointed former Ilva chief operating officer Colin Haggerty to the new role of business development director for its Asda Living non-food banner. He will focus mainly on the UK but will also have international responsibilities and undertake assignments for Wal-Mart.
AUCHAN Portugal appoints new md
Auchan Portugal has appointed a new managing director, Américo Ribeiro, who will report to the President of Auchan Portugal, Eduardo Igrejas. Mr Ribeiro has worked for Auchan Portugal for 17 years.
BHARTI WAL-MART to set up training centres in cash & carry outlets
In India, Bharti Wal-Mart plans to set up training centres in its planned cash & carry outlets. The training centres will educate small retailers about product display, inventory management and working capital management. This change in the company's strategy is to reach out to the traders fearing the entry of western format retail stores. A company spokesperson said, "We will set up training centres across the country. Plans for this are already underway. They will be taught the basics, largely to do with better management. Bharti-Wal-Mart cash & carry operations would provide equal opportunity to all, including the kirana stores, to buy from them. This JV for wholesale cash & carry business would sell quality goods to retailers, including small store owners, while adding that venture’s wholesale supply chain would link farmers and small manufacturers, thus minimising wastage of fresh foods and vegetables and helping control inflation".
BI-LO makes new appointment
In the USA, Supermarket News reports that BI-LO has promoted Anthea Jones to the newly created position of group vice president, centre store. An eight-year BI-LO veteran, Jones previously served as vice president of nonfoods and pharmacy. In her new role, she will be responsible for category management support, pricing and centre store procurement. She will report directly to executive vice president Tye Anthony.
CARREFOUR opens Moscow office
According to unconfirmed reports in the Russian press this morning, Carrefour has opened a business office in Moscow in advance of entering the market next year. It is understood that Carrefour is going to open its first store in Moscow in the second quarter of 2008. The store, running up to 13,000 square metres, will be included in the shopping centre Ekstarkt Fili.
CASINO Cafétéria changes name
In France, Casino’s restaurant and foodservice arm is to change name. The operation is to be renamed Casino Restauration whilst the old name Casino Cafétéria will be used as the banner name for its restaurants.
CO-OPERATIVE GROUP invests in refits and rebranding
In an interview in the Financial Times this morning, the chief executive of the Co-operative Group in the UK, Peter Marks, has said that the retailer is to invest GBP200 million (USD396.8 million) next year in an accelerated programme of store refits and rebranding. The retailer intends to modernise its entire estate by the end of 2009 and also plans to open 200 convenience stores in the same period. The refit of stores and repackaging of products – rolling out a new identity as “The co-operative” to replace a mix of formats – will extend across the group’s entire business, encompassing pharmacies, travel agents, funeral businesses and the Co-operative Bank. However, Mr Marks acknowledged that retail was the priority. “We are going to put our foot hard down on the accelerator,” he said, acknowledging that the inconsistency of the Co-op’s brand had been “a major failing for far too long”. Mr Marks said the Co-op would seek more city centre locations following the success of stores in Leeds and Manchester and also signalled that he would soon announce two acquisitions for the Co-op’s pharmacy business.
DENNER appoints new president
In Switzerland, discount chain Denner has chosen a new supervisory board president, the former boss of Rewe, Dieter Berninghaus. Last month the competition watchdog in Switzerland announced that Migros can complete its 70% acquisition of Denner, but only if it meets strict anti-competition conditions. Denner must operate independently for seven years or until German discounters Aldi and Lidl have opened 250 stores in Switzerland. Migros had hoped that Denner could profit from its powerful negotiating position when buying goods, but it must now continue to purchase from suppliers separately from Migros and stick with its own product range.
DINOSOL taken off the market
According to unconfirmed reports in the Spanish press, the ongoing financial crisis has forced private equity firm Permira to take DinoSol off the market. The decision was based on a report drawn up for Permira by investment bank JPMorgan, and was made despite interest from DinoSol's main rivals, including Carrefour and El Corte Ingles. Permira will now reactivate the company's expansion plan, which envisages the launch of new stores and the launch of private label products.
HUDSON’S BAY extends Fields network
Hudson's Bay Company (Hbc) has announced the opening of four new Fields stores, bringing its total to 150 across Canada. Fields is Hbc’s extreme discount retail format. The latest store openings include Valemount, BC; Two Hills, AB; Fort Qu’Appelle, Saskatchewan and Killarney, MA. “The opening of our 150th Fields location marks the strength of this franchise for Hbc, and its growing position in the Canadian value-priced retail market,” said Robert Johnston, President, Hbc. “Our focus is now on growing in the Ontario market where we intend to open 33 locations by the end of 2008.” Located primarily in Western Canada, Fields is a general merchandise store featuring extreme value price points. As a result of growing demand for great value on everyday merchandise for the entire family, Hbc has opened an additional 53 stores Fields stores in the last 30 months. “With our value-priced, convenient assortment of everyday consumables, family clothing, home fashion and general merchandise, including many popular brand names, Fields has been a real success in Western Canada where we have experienced strong comparable store sales growth,” said Greg Crowder, General Manager, Fields. “We look forward to continuing our strong growth trend in the Western part of the country and introducing the same exceptional value and customer centric service to Ontario.”
IKI considers going public
According to reports in the Baltic press, citing the retail director of IKI, Aidas Mackevicius, the retailer has plans for an IPO early next year, "Yes, that is true. We are considering such a possibility. At the moment, I can only say that we have met with several Lithuanian and foreign investment banks. I have no further comments for now." The retailer last week reported that its sales in Lithuania and Latvia rose by 33.5% in the first nine months of this year to reach LTL1.594 billion (USD619.4 million).
KESKO not selling Kespro
Finnish group Kesko has stated that it has decided not to divest its wholesale unit Kespro as the price would have remained low. Instead the company will develop Kespro as an independent subsidiary of the group’s Food division. Last April, Kesko said it was considering divesting Kespro and its sourcing operations to concentrate more closely on consumer-customer trade.
KROGER Food 4 Less ratifies new labour contract
Members of the United Food and Commercial Workers (UFCW) union in Southern California have ratified a new contract with Kroger owned Food 4 Less. Effective immediately, the four-year agreement covers more than 5,700 employees. The contract provides wage increases and new healthcare benefits for Food 4 Less employees and their families.
KROGER launches generic drug programme in Ohio stores
Following on from similar moves by Wal-Mart and Giant Eagle, Kroger has launched a generic drug programme in its Ohio stores. The grocer now offers more than 300 generic drugs for USD4, including commonly prescribed medicines for asthma, depression, diabetes and heart disease. The launch comes after the success of last year’s test in select stores in Peoria, IL, Omaha, NB, and New Mexico. Those test stores, all 71 Central Ohio stores, and outlets in Cincinnati, Dayton and Toledo will offer the special pricing. Ohio was chosen for the rollout because Kroger has a strong presence in the state and also “it’s a very competitive environment,” according to company spokesperson Meghan Glynn.
LANDMARK GROUP Max Retail opening plans
In India, Max Retail, a part of Landmark Group, currently operates ten Max stores and plans to set up 50 stores over the next four years adding a new store practically every month. The stores currently operate in eight cities including three stores in New Delhi, one each in Mumbai, Bangalore, Hyderabad, Ahmedabad, Indore, Agra and Lucknow. Max Executive Director Vasanth Kumar said, "We estimate to close this year with a turnover of about INR900 million (USD22 million), and expect to grow it to about INR7 billion (USD171.5 million) over the next four years".
LAWSON considers regional pricing
Speaking alongside the release of interim results last week, the president of Japanese c-store chain Lawson, Takeshi Niinami, said that the retailer will consider introducing a regional based pricing system for certain food products next year. Under the proposal, Lawson is looking to offer products with varying volumes, packaging and prices based on economic conditions in a region and has already begun asking food manufacturers to consider creating such products for its stores.
METCASH to sell former Action stores in WA
In Australia, Metcash has announced that it will sell its remaining former Action supermarkets in Western Australia to a joint venture of independent IGA retailers and former executives of Foodland, keeping a minority stake. Metcash acquired the stores, now branded Supa IGA, when it acquired Foodland's Australia businesses in 2005. The sale is expected to be completed by the end of October 2007 and Metcash said it expected the new joint venture to drive growth of the Supa IGA stores.
PETS AT HOME looks at flotation or sale
According to reports in the Sunday Times, Bridgepoint, the private-equity group, has drawn up a short-list of investment banks in preparation for a possible GBP600 million (USD1.1 billion) sale or flotation of Pets at Home, the UK’s largest specialist pet retailer. It is thought the four-strong short-list includes Citigroup, Goldman Sachs, UBS and NM Rothschild. The banks are preparing for a pitch to win the mandate in the next three weeks. Bridgepoint bought Pets at Home in a GBP230 million (USD421.2 million) deal three years ago.
RELIANCE RETAIL opens first clothing store
In India, Reliance Retail has launched its first exclusive apparel store Reliance Trends in Gurgaon occupying 2,788 square metres offering both manufacturer's brands as well as private labels. Reliance Trends' private labels will constitute 30% of the total collection including brand names such as Network and Netplay for men's casuals, Frenz and Panda for childrens' wear while the women's range will be sold under Sparsh brand. The first apparel store will be followed by two more stores in Delhi and Mumbai. Reliance Retail plans to set up 100 stores by the next three years including 20-30 stores by 2008.
Delta Two reaches agreement with SAINSBURY pension fund trustees
In the UK, Delta Two is reported to have reached an agreement with Sainsbury's pension fund trustees, clearing the way for it to make a takeover bid. According to newspaper reports, Delta Two and the pension trustees have compromised on a GBP1.5 billion (USD2.9 billion) security package, of which approximately GBP600 million (USD1.1 billion) will be paid up front in cash, with the remainder coming in the form of property sourced from Sainsbury's extensive portfolio.
SHELL Thailand hands over stations to dealers
As reported by local media, Shell in Thailand is planning to hand over the operation of all of its company-owned/company-operated stations to dealers by the end of 2007, thus closing a three-year restructuring scheme that saw the number of company-owned/company-operated stations fall from 150 three years ago to 20 today and zero by end-December. According to Simon Hirst, general manager retail sales and operations for Shell in Thailand, there are 550 Shell petrol stations in the country at present, including 20 company-owned/company-operated stations, 330 company-owned/dealer-operated sites and 200 dealer-owned locations. According to Mr Hirst, “Operation costs should decrease because dealers would try their best to cut down wasteful expenditures and attract more customers by keeping stations clean, convenient and safe, aiming to be rewarded as much as possible by the company.''
TESCO Ireland sells newly opened warehouse
According to reports in the Irish press, Tesco’s local operation is preparing to sell its newly opened distribution centre in Donabate, north Co Dublin, for more than EUR120 million (USD161 million). Under the terms of the deal, Tesco will lease back the 46-acre property for 25 years. It is understood that Tesco Ireland will use the money for the development of its operations in the country. This is the first time Tesco has entered into such an arrangement for one of its properties in Ireland, and it is understood that there are no plans to offer any other sites for sale.
TESCO boss tells Waitrose to retract “damaging allegations”
According to reports in the UK press, the chief executive of Tesco, Sir Terry Leahy, has demanded that Waitrose chief executive, Mark Price, retract an attack on Tesco in which he last week accused the retailer of "using its financial might to stamp out rivals''. The two chief executives are understood to have spoken early last week, after the interview was published. Sir Terry has written to Mr Price asking that he publicly sets the record straight, and it is understood both retailers are consulting their lawyers. A spokesman for Tesco refused to comment on Sir Terry's letter, but said: "Mr Price made some serious allegations about Tesco which were damaging and wrong.'' A spokesperson for Waitrose said discussions between the two chief executives were a private matter and they would "not be commenting further''.
TESCO forced to rethink Property Market
According to reports in the Sunday press, following advice from the Office of Fair Trading in the UK, Tesco suspended the private sales section of its property website two weeks ago and now plans to relaunch it as an online estate agency service. Following the launch of Tesco Property Market in June, estate agents complained to the Office of Fair Trading that Tesco was effectively acting as a full-blown estate agent. The sector argued that Tesco was effectively acting as an estate agent, and pointed out that some home-sellers could end up paying both the GBP199 (USD394.90) Tesco fee and another fee stemming from the contract they had with a real estate agent. Tesco was advised that it was acting as an estate agent under the 1979 Estate Agency Act. The retailer has offered to refund customers the GBP199 (USD394.90) fee. "Whilst being an online estate agent was never our immediate intention, we are so encouraged by the positive reaction from customers to Tesco's entry into this market that we are now reviewing our business with a view to launching a new and exciting online estate agency service,'' Tesco said. "Our advice to Tesco was that they were engaged in estate agency work. If companies are to do that they need to abide with all the laws relating to estate agency,'' said an OFT spokesman.
WAL-MART to reward suppliers’ green efforts
Speaking last week, the chief executive of Wal-Mart, Lee Scott, said that the retailer is moving towards rewarding suppliers who manufacture their products in a more environmentally friendly manner. He also said the company expects to complete a supplier index early in 2008 that will rate its suppliers' environmental practices. Scott said the supplier index would give credit to vendors who have helped Wal-Mart reduce its "carbon footprint." "We do not want to aggregate those and then say, `Wal-Mart has accomplished this.' We want to say that Wal-Mart, in cooperation with the supplier community and with individuals, has been able to do this," he said. Scott said Wal-Mart most likely will always carry some products that do not benefit the environment because customers want them. But those products will not get prominent display, he said. "You're going to carry them, but it doesn't mean they should be in the [advertising] tab, doesn't mean they should be in an end cap, doesn't mean they should be in action alley. We can help the people who are moving the fastest. We can help them by rewarding them simply by product placement, and the things we do through tab and marketing and others," he said.
WAL-MART Brazil offers cut price notebook computers
Wal-Mart Brazil has begun selling cut-price notebook computers. The units feature Intel Celeron M430 processors, 80 gigabytes of HD, 512 megabytes of memory, and Windows Vista Starter Edition and costs only BRL1,496 (USD773). "This is another of the initiatives of Wal-Mart to offer the consumer an excellent assortment of computers. The notebooks are differentiated by featuring excellent settings, such as Windows Vista, in addition to competitive prices and special conditions of payment," noted Rafael da Silva Gomes, director of electronics at Wal-Mart. The offer can be found in Wal-Mart Supercenter, Big and Hyper Bompreço hypermarkets across the country. In addition to a year's warranty, consumers will be able to use their Hipercards to access 12 months’ interest free credit.
WILKINSON updates on strategies
Speaking at the recent Health & Beauty Association conference, Wilkinson buying director Simon Hathway provided an update on a variety of the company’s strategies. He reiterated that the retailer was targeting 300 stores by the end of the year (up from the current 285) and was aiming for full year sales of GBP1.6 billion (USD3.1 billion). Looking ahead, he stated that Wilko would be looking to be trading from 500 stores by 2012, generating at least GBP3 billion (USD5.9 billion) of sales. With regards to the reintroduction of grocery ranges, Hathway described how – despite the fact that food lines were not a great contributor in terms of profit – they were a popular addition to the chain’s ranges and were helpful in establishing Wilko as a one-stop shop and driving footfall. In relation to HBC ranges, Hathway stated that these lines were attributable for around a quarter of sales. He added that total sales were up by 12% so far this year, with comparable sales ahead by a more than respectable 8%.
BARNES & NOBLE targets BlackBerry users
Barnes & Noble has announced it has chosen Austin startup Digby to create a new online storefront for BlackBerry users. “Consumers now have a fully stocked Barnes & Noble right on their BlackBerry with access to hundreds of thousands of products," said Marie Toulantis, CEO of Barnes & Noble.com. Digby offers a free mobile commerce service for making purchases using BlackBerry devices. Now, new services like Digby, which aims to let users make a purchase in 30 seconds, are making mobile commerce easier. Digby works by storing retailers' best-selling items on an application that users download on their BlackBerry. In addition to the featured items, Digby users can access more than a million products over the mobile web. When Barnes & Noble decided to move into mobile commerce, it wanted a partner that would simplify the process, said Brian Buckley, vice president of online partnerships. “Digby offered just what we wanted - something very easy to use and very intuitive,” he said. “For us, it's the next logical step. We've had our website for over 12 years. Now our customers want to buy using a mobile device, and Digby is taking us there.”
BEST DENKI H1 sales up but profit slides
Japanese electronics retailer Best Denki has announced its half year results for 2007. The company has stated that net sales reached JPY209 billion (USD1.7 billion), for the six months ended August 31, 2007, compared with sales of JPY175.4 billion (USD1.5 billion) in the same period last year. For H1 2007, the company recorded a net profit of JPY240 million (USD1.96 million), compared with a net profit of JPY957 (USD8.23 million) in 2006.
HARVEY NORMAN denies Noel Leeming and Bond & Bond acquisition plans
Harvey Norman chairman Gerry Harvey has denied rumours his company is in the process of acquiring rival Noel Leeming, New Zealand’s largest appliance retail chain, despite media reports to the contrary. “We are not going to buy it. I rang up Noel Leeming and Bond & Bond to see if they were for sale. I heard on the grapevine they were for sale but now it seems that they’re not so I’m not sure what’s going on,” Harvey said. Harvey confirmed the company will be opening a new chain in New Zealand called Norman Ross that will compete directly with Harvey Norman stores. He also confirmed that construction of a “very large development site” near Hobart Airport was well under way and scheduled to commence trading in early 2008. “It’s a bulky good type retailer, the biggest of its kind in Tasmania with lots of retail and office space,” Harvey said. “It’s only stage one that will be opening next year.
HMV outsources data centre as part of savings drive
HMV Group has announced it is in the process of relocating and consolidating its server estate after signing a managed services contract with Syan. About 200 servers - which run business-critical applications for HMV and Waterstone's - are being moved from HMV’s data centres in London and Solihull to Syan's sites in Telford and Newport in Shropshire. Waterstone's store systems have been relocated and the remaining systems are in the process of being consolidated and relocated. Syan is also providing server management services. Earlier this year, HMV announced that cost savings would be a core strategy and that back-office functions - including IT - would be consolidated in the two operating businesses.
HMV unveils game zone
HMV has announced is trialing a new state-of-art gaming centre with full Xbox Live connectivity at its flagship store in Edinburgh next Friday. The new members-only HMV gaming zone is an extension of HMV’s existing games department, which offers a range of gaming products such as Xbox 360, Nintendo, PlayStation and PC software titles and hardware. The new area has been set up with 27 Xbox 360 consoles, Samsung high definition TV screens and a range of games to play, making it the store with the largest games offering. Further gaming zones will be rolled out depending on its success. The area will only be accessible to people who sign up as members of the zone and have a HMV gaming zone ‘play’ card. Members have to pay before entering the zone and fees range from GBP3 (USD5.95) for an hour to GBP5 (USD9.92) for three hours. HMV head of games Tim Ellis said: "Games are now an integral part of the HMV offer, and whether we're selling them or, as in this case, also making them available on a pay-per-play basis, it's about getting our customers closer to the things they love, and giving them access to content however they wish to consume it.
WOOLWORTHS insists it has enough toys for Christmas
In the UK, Woolworths has been forced to allay fears it will run out of toys at Christmas. Following reports the Chinese toy safety scandal will leave it short of stock, the retailer’s toy chief Nick Hill stressed vehemently that nothing was wrong. Hill said: “Widespread shortages of toys are unlikely this Christmas. Woolworths stores have plenty of stock of the most popular lines.” Despite the denial by Hill, Woolworths does not inspire confidence with its past record. In its first Christmas as a public company in January 2002, a profit warning was issued after it run out of DVDs. And the company issued two festive earnings alerts last year, and one in 2005. A company insider said Woolworths reckons this Christmas will be profit warning free because trading has improved.