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Period: October 15, 2016 to November 1, 2016
Comment & Opinion or Companies, Organizations or Consumers or Controversies & Disputes or Deals, M&A, JVs, Licensing or Earnings Release or Finance, Economics, Tax or Innovation & New Ideas or Legal, Legislation, Regulation, Policy or Market News or Marketing & Advertising or Other or People & Personalities or Press Release or Products & Brands or Research, Studies, Advice or Supply Chain or Trends

Blue Apron’s Meal Kit Facilities Throw Away Far Less Food Than Grocers

The Blue Apron meal kit delivery company is managing to keep food waste to a minimum at its prep facility, according to a study by a nonprofit sustainability advocate. BSR found that Blue Apron trashed only 5.5 percent of its food, compared to the to the 10.5 percent thrown out by grocery stores. The organization also found that buyers of Blue Apron kits threw away only 7.6 percent of the meals, instead of the 24 percent usually thrown away after home cooking. The key reason for the company’s lower waste generation is the fact that it knows exactly how much food it needs for each kit.

"Cooking With A Meal Kit May Waste 62% Less Food Than Grocery Store Ingredients", Fast Company, September 19, 2016

American Economy Braces For Onslaught Of Older Millennials, And Their Kids

The fact that Millennials are procreating is having a major impact on almost all industries, from foodservice to auto sales to home buying. There are 70 million Millennials (aged 18 to 35 years), and over the next decade 60 million of them will become parents. They will spend $200 billion annually beginning next year (up from $170 billion) and $10 trillion over their lifetimes. Despite opinions to the contrary, they will begin buying homes and cars, eat out at more healthful restaurants, and begin shopping for kid stuff. The impact is already being seen in restaurants and retail chains. McDonald's, Chick-Fil-A, Wendy's, etc., are getting rid of unwanted ingredients; Target, Walmart, and Kroger are changing their stores to appeal to Millennial moms.

"Everything you know about millennial spending is about to change", Business Insider , October 01, 2016

Ten Trends Expected To Drive Western Europe's CPG Market In 2016-2030, Report Says

Ten trends are expected to drive Europe's consumer packaged goods industry from 2016 to 2030, according to McKinsey & Company. Data from the market research firm's report, “Western Europe's Consumer Goods Industry in 2030,” revealed changes in consumer behavior, stagnating mass market, and fragmented niches of growth will force CPG companies to rethink their business and marketing strategies. Also expected to play important roles in determining the market's future directions are the increase in cross-channel shopping and continued growth of discounters, growing importance of online grocery and competition for digital placement, and changes in industry dynamics. Vertical integration and new business models, widening adoption of digital technology, cost leadership and consolidation, and external influences are also factors that CPG companies will have to deal with during the period covered by the report. To top it all, market stakeholders will also see an increase in government ...  More

"Western Europe’s consumer-goods industry in 2030", McKinsey & Company, October 01, 2016

Millennials Expect Their Grocers To Carry Natural And Organic Personal Care Products

With demand growing for natural and organic personal care products, consumers, especially Millennials, expect these products to be available at their favorite grocery stores. While Millennials do not like going to specialty stores to buy personal care products, many would go to the nearest health food store if their favorite retailer did not sell the natural products they seek, according to Wally's Natural. Despite the growing demand, retailers sometimes cannot distinguish between products labeled as natural and those classified as organic.

"More Than Skin Deep", Grocery Headquarters, October 07, 2016

National Advertisers Seek Multicultural Help In Improving Marketing

The trade group that represents companies that spend a total of $300 billion a year on national brand advertising announced an alliance of senior “thought leaders” from the African American, Hispanic, Asian, and LGBT communities to develop a blueprint for multicultural marketing in the U.S. The Association of National Advertisers says the new Alliance for Inclusive & Multicultural Marketing (AIMM) would facilitate brand marketing to diverse racial and cultural groups. Among the specific goals of the AIMM: share multicultural marketing examples; drive ROI, primarily through marketing effectiveness; disseminate best practices of multicultural and diverse demographic segments; and through a robust communications program; and create unique marketplace experiences providing insights into the multicultural arena.

"ANA Forms New Multicultural Marketing Alliance", News release, Association of National Advertisers, October 10, 2016

Line Separating Online And Offline Retail Continues To Blur, Report Says

In 2016, the retail market will see several current trends intensify and further shrink the gap between ecommerce and brick-and-mortar retail, according to the report, “US Holiday Ecommerce Preview 2016: Mobile to Fuel Explosive Ecommerce Growth,” by eMarketer. Data from the market research firm predict retailers will adopt improved fulfillment options, local advertising tools, offline attribution, and omnichannel platforms. Also, mobile is helping close the gap between the two segments, a trend forecast to become more pronounced in the 2016 holiday season.

"Gap Between Online and Offline Commerce Is Shrinking", eMarketer, October 10, 2016

Ulta Plans To Expand Store Network To Double Market Share

Beauty retailer Ulta aims to expand its market share in the next several years by opening new stores, growing its online business, and improving store productivity. Company CEO Mary Dillon said she expects Ulta to double its share of the $127 billion beauty market in the US from the current 4 percent. At the company's latest analyst and investor day, Ulta adjusted comparable-store sales growth forecast for 2017 to 2019 from 5‒7 percent to 7‒9 percent. Also, the company raised its same-store sales growth outlook from 11‒13 percent to 14‒15 percent.

"Ulta Beauty CEO Wants to Double Market Share", CNBC, October 13, 2016

Walgreens Customers Can Now Buy Online, Pick Up At Store, For Free

Pharmacy chain Walgreens is following the lead of other big retailers by unveiling program that allows customers to buy online or on the phone and then pick up the purchase at a store. The new Ship to Store program, available at 7,600 Walgreens and Duane Reade stores, features free shipping with no minimum order requirement. Orders can be picked within one to three days of purchase. Online purchases can also be delivered to the home for free with a minimum order of $35.

"Walgreens introduces Ship to Store program", Drug Store News, October 17, 2016

Tesco's Sales Outpace Overall Market, Kantar Worldpanel Says

Tesco grabbed a bigger share of the UK retail market at 28.2 percent, helped by 1.3 percent increase in sales, during the 12-week period ending October 9, 2016, according to Kantar Worldpanel. Data from the market research firm revealed Tesco's sales grew faster than the overall market's 0.8 percent. Tesco gained 228,000 new shoppers during the period, as other retailers also posted market share gains, including Iceland, 6.9 percent; Co-op, 3.1 percent; and Waitrose. Sainsbury's sales declined 0.4 percent, while Morrisons saw sales drop 3.0 percent.

"Tesco wins market share for first time in five years", Kantar Worldpanel, October 18, 2016

Walgreens Boots Alliance Reports 20.3 Percent Profit Increase In 4Q

Walgreens Boots Alliance, Inc. announced adjusted fiscal 2016 fourth quarter net earnings increased 20.3 percent to $1.2 billion over last year, on sales of $28.6 billion (up 0.4 percent). Fourth quarter net earnings per share were $0.95 compared with $0.02 in the same quarter a year ago. The company said increases in net earnings reflect fluctuations in the quarterly fair value adjustments of the company's AmerisourceBergen Corporation warrants. Fiscal 2016 earnings per share declined 4.5 percent from the prior year, to $3.82. CEO Stefano Pessina said, "The exercise of the AmerisourceBergen warrants in August provides an example of the opportunities open to us to deploy capital.”

"Walgreens Boots Alliance Reports Fourth Quarter and Fiscal 2016 Results", Earnings release, Walgreens Boots Alliance, October 20, 2016

The Body Shop Opens First Pop-Up Store In Canada

Beauty retailer The Body Shop opened a pop-up store in Toronto’s Yorkville neighborhood, the company’s first in Canada. Designed for testing new installations and activations and promote holiday gifts, the store features iPad tablets that display videos highlighting the retailer’s Bio Bridges rainforest awareness program. Also, the store includes an installation for Body Butter products that tells stories about the company’s partnerships with community-based suppliers of shea nuts and other materials.

"The Body Shop pops up in Yorkville", Marketingmag, October 20, 2016

Walmart Invests $50M In China’s Big Online Grocery Retailer

Just one day after Walmart and China’s JD.com revealed they would collaborate on three new online services, the U.S. retailer announced a $50 million investment in New Dada, the country's largest local on-demand logistics and grocery O2O e-commerce platform. The investment enables grocery delivery from certain Walmart stores. The earlier announcement focused on Sam’s Club and Global Imports stores on JD.com, and two-hour grocery delivery through New Dada, an independent joint venture of JD.com and Dada. New Dada has more than 25 million registered customers and provides local on-demand delivery in 300 cities in China. Walmart has 426 stores in 170 cities.

"Walmart Announces Strategic Investment in China’s largest on-demand logistics and O2O Grocery platform New Dada", News release, Walmart, October 21, 2016

Lidl Eyes 100 More Stores In Romania

German discount retailer Lidl plans to add 100 stores more to its current 200 locations in Romania, according to Frank Wagner, the company's director of operations in the country. After launching its business in Romania by acquiring discount retailer Plus in 2011, Lidl has opened 10‒15 stores each year until 2016. At present, Lidl is the third largest retailer in the country, following Kaufland and Carrefour.

"Lidl plans to open another 100 stores in Romania", Romania Insider, October 24, 2016

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