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Kroger’s Launches Campaign To Boost Milk Donations To Local Food Banks

September 1, 2015: 12:00 AM EST
U.S. retailer Kroger’s announced it is joining a hunger-relief organization, and dairy farmers and milk companies, to encourage grocery shoppers to donate milk to needy families in their communities. Milk is rarely donated to food banks, despite the fact that it is rich in nutrients, including protein. Through the “Pour It Forward” campaign, however, Kroger customers can donate $1, $3 or $5 at check-out to help deliver milk to a local family facing hunger. The company said all donations collected go directly to Feeding America food banks that service the local community where the donation was made. 
"Kroger Encourages Shoppers to 'Pour it Forward' by Donating Nutrient-rich Milk to Food Banks during Feeding America's Hunger Action Month", News release, Kroger, September 01, 2015, © SNL Financial LC/ The Kroger Company
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Tesco Data Analysis Unit Dunnhumby Partners With Chinese Grocery Chain

August 28, 2015: 12:00 AM EST
As British retail grocer Tesco finalizes plans to divest several of its businesses, one of the units on the auction block, data analyst Dunnhumby, has cemented a joint venture relationship with a large Chinese supermarket chain. Dunnhumby will partner with China Resources Vanguard, which operates 4,000 shops in Hong Kong and mainland China. The partnership will give Dunnhumby access to shopper data in a rapidly-expanding market that includes 20 million Vanguard loyalty card users. It also gives the company an opportunity to work with other retailers. Several industry and private equity buyers have expressed interest in acquiring Dunnhumby’s. Final bids are due in early September.
Arash Massoudi, "Tesco’s Dunnhumby sets up Chinese joint venture", Financial Times, August 28, 2015, © The Financial Times Limited
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Department Stores Adjust Tactics As They Try To Reclaim Beauty Market Share

August 28, 2015: 12:00 AM EST
For more than a decade, department stores have lost beauty product market share to Web sites, airport shops, boutiques and discount pharmacies. Now they are fighting back, eager to reclaim some of that lost business. Kohl’s is revamping its beauty department, while J.C. Penney has broadened its alliance with Sephora and has repositioned its salon services. But stores are also recovering market share by emphasizing high-end beauty products. Premium-price products outpaced the cheaper mass segment last year, partly because of the improving economy, according to analysts. Another strategy: selling expensive dual-purpose products, like foundation with sunscreen or anti-aging ingredients.
Krystina Gustafson, "Department stores duke it out over these shoppers", CNBC.com, August 28, 2015, © CNBC LLC
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Lidl Ad Campaign Stresses Product Quality Over Low Prices

August 28, 2015: 12:00 AM EST
German discount grocery chain Lidl continues to spend big on advertising in the face of sagging sales among the U.K.’s biggest supermarkets. Volume of items purchased dropped 0.3 percent. The number of items purchased from the UK’s leading supermarkets fell by 0.3 percent in July over last year. But Lidl has been pouring money into TV and newspaper ads that tout the quality of its in-house brands, not just the generally lower prices. For the four weeks that ended on August 15, the company spent £3.7 million ($5.7 million) on ads, a 261 percent increase over the same period last year. The increased spending returned a 9.5 percent year-on-year increase in shoppers.
Jennifer Faull, "Lidl continues to spend big on advertising as sales volumes fall", The Drum, August 28, 2015, © Carnyx Group Ltd
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Lidl Private Label Products Rated No. 1 In Quality

August 27, 2015: 12:00 AM EST
A German digital consumer magazine has ranked discount grocery chain Lidl’s private label products the “best quality.” The ranking was based on 60 assessments by Vergleich.com and Stiftung Warentest. Lidl’s score of 2.49 – lower scores are better – beat second place Aldi Nord and third place Rewe. Nielsen data show that the market share of private label grocery items in Germany has risen six percent since 2009 to 34 percent of the total.
"Lidl's Private Label Rated 'Best In Germany'", European Supermarket Magazine, August 27, 2015, © European Supermarket Magazine
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The Macy’s Name May Not Be Magic Enough In China’s Online Market

August 24, 2015: 12:00 AM EST
If Macy’s hopes to succeed on China’s Tmall Global platform, it needs to understand the realities of Internet marketing to Chinese consumers today. Tmall enables foreign companies to advertise and sell directly to millions of China’s increasingly affluent online buyers. Macy’s is investing $25 million to tackle the Chinese online market and plans to sell $50 million worth of its premium brands in 2016 (without the brick-and-mortar stores). The key question is, why would Chinese consumers buy upscale brands like Coach and Estée Lauder from Macy’s? What value does the consumer get from a venerated old retailer? The answer: not much. The better approach would be to follow Costco’s successful Chinese marketing lead. “You’d think this is a nation of 1.3 billion squirrels, the way Costco is moving its private label Kirkland mixed nuts,” says the China Digital Review.
Sidney Sheldon, "Will Macy’s Magic Work in China?", China Digital Review, August 24, 2015, © China Digital Review
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Boston’s Restaurants Maintain A Dough Tradition Created More Than 50 Years Ago

August 24, 2015: 12:00 AM EST
Today, Boston’s is both a family restaurant/sports bar chain and a pizza chain with hundreds of locations in the U.S. and Canada. But it springs from a single pizza and spaghetti shop founded more than 50 years ago in Alberta, Canada, by a Greek immigrant. To this day, the company takes special pride in a key ingredient of its pizzas, sandwiches, Paninis, and tacos: the made-from-scratch dough. Founder Gus Agioritis insisted that the dough he made each day had to proof for at least eight hours. Today each Boston’s restaurant kneads its dough by hand and lets it proof for 24 hours. The restaurants all carefully monitor the temperature of the air, the wheat flour mix, and the water. The wheat is sifted and each layer is individually streamed for better blending to create “Boston’s signature flavor profile and dough consistency.”
"For the Love of Wheat: Boston’s Restaurant & Sports Bar ‘Rolls Out’ Campaign Dedicated to the Dough", News release, Boston's Restaurant, August 24, 2015, © Boston's
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Grocery Discounter Lidl Dabbles In Customer Reward Card Scheme

August 21, 2015: 12:00 AM EST
German grocery discounter Lidl, which operates 620 stores in the U.K., has for the first time issued “smarter shopping” cards to shoppers in Scotland. The company says the cards are not “loyalty” cards because shoppers do not have to register personal details and no points will be tallied for shopping. The cards promise £5 off if cardholders spend at least £25 in store over two weeks. The program will run for 10 weeks, during which time other special offers will be presented to cardholers. Though the company said it was a simple reward system, industry analysts said the move is actually a response to an increasingly tough environment for discounters as the big grocery chains fight back.
Sarah Butler, "Lidl trials its first loyalty scheme with Scottish customers", Guardian, August 21, 2015, © Guardian News and Media Limited
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Tesco Puts Its South Korean Grocery Business Up For Sale

August 21, 2015: 12:00 AM EST
At least five private equity firms have formed alliances to bid for Tesco’s $6 billion South Korean retail grocery business. The sale would help Tesco reduce its debt and help position it for a turnaround in the U.K. Among the potential bidders are the Asia-based Affinity Equity Partners and U.S.-based KKR & Co.; Carlyle Group and Singapore's GIC; and Asian private equity firm MBK Partners, which hopes to secure equity funding from South Korea's National Pension Service. Tesco has been struggling to compete against German discount grocers Aldi and Lidl, while trying to recover from an accounting scandal.
Joyce Lee and Kane Wu, "UPDATE 1-Private equity firms team up to bid for Tesco's $6 bln S.Korea unit-sources", Reuters, August 21, 2015, © Thomson Reuters
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Target’s Empty Shelves Problem Damages Its So-Far Successful Turnaround

August 20, 2015: 12:00 AM EST
Empty store shelves – a problem that has tormented Walmart for a couple of years – is also worrying retailer Target. CEO Brian Cornell says stores are not stocked well enough, a symptom of a loss of focus on its fundamental business. The problem is hurting a heretofore successful comeback bid for the company, which posted quarterly earnings that surpassed Wall Street estimates. To solve the problem Cornell hopes to improve the amount of merchandise available to shoppers (a.k.a., “in stocks”) while refining its supply chain.
Shannon Pettypiece, "Target Copes With Problem Familiar to Wal-Mart: Bare Shelves", Bloomberg, August 20, 2015, © Bloomberg L.P.
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Whole Foods Ranked Among Fortune’s “World Changers”

August 20, 2015: 12:00 AM EST
Fortune magazine has named Whole Foods Market one of the top 50 companies that “Change the World.” According to the magazine, Whole Foods “prompted Walmart and Kroger to up their organic game,” whole implementing animal welfare standards, refusing to sell overfished seafood and requiring GMO labeling by 2018. Whole Foods, which is ranked No. 30 on the Fortune list, was also cited recently by Greenpeace as the top retailer for seafood sustainability in its annual ranking of U.S. supermarkets.
"Whole Foods Market makes Fortune’s ‘Change the World’ list, a ranking of ‘companies that are doing well by doing good’", News release, Whole Foods Market, August 20, 2015, © Whole Foods Market
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Target Beats Profit Expectations For 2nd Quarter

August 19, 2015: 12:00 AM EST
Target Corporation reported second quarter 2015 adjusted earnings per share of $1.22, an unexpected increase of 20.6 percent from $1.01 in 2014. However, the company also predicted unsatisfactory sales for this quarter, noting that consumer demand would likely stay uneven. The retailer’s higher-than-expected quarterly profit raised its full-year earnings forecast. COO John Mulligan told analysts he expects sales at stores open at least a year to increase as much as two percent this quarter. That would include digital sales growth of around 30 percent. Same-store sales rose 2.4 percent in the second quarter ended on July 31, to $17.4 billion from $17 billion last year.
"Target Reports Second Quarter 2015 Earnings", Earnings release, Target, August 19, 2015, © Target Brands, Inc.
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Walgreens Beauty And Personal Care Chief Leaves Company

August 19, 2015: 12:00 AM EST
Walgreens VP and general merchandise manager for beauty and personal care, Shannon Curtin, has resigned from the company effective September 1, 2015. Curtin oversaw the retailer's participation in the Go Big in Beauty event and helped expand the company's beauty business since joining Walgreens in 2009. Lauren Brindley will take over Curtin's responsibilities effective September 8, 2015.
"Beauty leadership changes at Walgreens", Drug Store News, August 19, 2015, © Drug Store News
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Wal-Mart's South African Unit Reports Sharp Profit Fall In 1H 2015

August 19, 2015: 12:00 AM EST
Wal-Mart Stores Inc.'s South African wholesaler unit Massmart Holdings reported profits fell 30 percent in the first half of 2015, after dropping 26 percent during the same period in the previous year. Following the announcement, price of the company's shares dropped 11 percent, its biggest decline since February 28, 2001. Retailers in South Africa are dealing with adverse effects of high unemployment, short power supply, and rising fuel prices.
"Wal-Mart’s Massmart Slides Most in 14 Years as Earnings Fall", Bloomberg, August 19, 2015, © Bloomberg L.P.
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World’s Children Eat Way Too Much Salt In Fast Food Restaurants

August 18, 2015: 12:00 AM EST
A survey by the group World Action on Salt and Health (WASH) finds that the vast majority of popular children’s meals served globally contain unhealthy levels of salt. The recommended level of salt consumed by kids aged 4-6 years old in one sitting is one gram. But the survey found that 82 percent of kid’s meals served at fast food restaurants contained more than one gram of salt, while some contained as much salt as 10 packets of potato chips. According to the WASH report, too much salt in a child’s diet accustoms them to salty foods as adults and raises the risk of high blood pressure, stroke and heart failure.
"New International Study Reveals Dangerously High Levels of Salt in Children’s Meals and Calls for Global Action NOW", World Action on Salt & Health, August 18, 2015, © Queen Mary, University of London
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Asda Announces Campaign Promoting Own-Label Dairy Products Made With UK Milk

August 17, 2015: 12:00 AM EST
UK retailer Asda announced its “Made with British milk” campaign to promote British dairy products. To be launched as soon as possible, the campaign will promote Asda's private-label Cheddar and highlight its commitment to using only UK milk from Arla Foods. Asda announced the program after the meeting between the company's CEO and president Andy Clarke and Arla Foods director Jonathan Ovens.
Kevin White, "Asda launches new “made with British milk” labeling", The Grocer, August 17, 2015, © William Reed Business Media Ltd
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Anytime Breakfasters Prefer McDonald’s, Subway, IHOP

August 17, 2015: 12:00 AM EST
People who love to eat breakfast more than once a day – a category known as “breakfastarians” -- say their favorite breakfast eatery is McDonald’s. A year-long online survey by a brand perception research service found that 41 percent of adults (over 18) think of McDonald’s, which has dominated breakfast dining for years, as they ponder their next meal. Subway came in second among the anytime breakfast crowd at 34 percent, followed by IHOP (32 percent), Burger King (27 percent) and Starbucks (26 percent). Denny's, Dunkin' Donuts, Wendy's, KFC and Chick-fil-A rounded out the top 10. According to researcher NPD Group, breakfast is the only U.S. restaurant meal time that is growing in terms of visits, and the competition among fast-food and fast-casual eateries is ferocious.
Lisa Baertlein, "McDonald's No. 1 choice for 'Breakfastarians': poll", Reuters, August 17, 2015, © Thomson Reuters
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Customizable-Pizza Joints Attract Customers – And Investors

August 17, 2015: 12:00 AM EST
If you’re a pizza lover and haven’t heard the names Pieology, Blaze Pizza or PizzaRev, chances are you will soon. The rapidly growing pizza chains, born in California and spreading like tomato sauce on a discus of dough, are just a few of the companies specializing in customizable – or “build your own” – pizzas. The concept is luring not only lots of customers but high-profile individual investors and restaurant chains, including Chipotle. One of the hottest categories of fast-casual dining, build-your-own pizza joints are thriving because they use high-quality, fresh ingredients, they’re made in house, and the dough is always fresh, never frozen. Another key to success: they offer custom-built pies at $10 or less with unprecedented speed – usually within five to ten minutes.
Robert Gray, "Customizable pizza is a piping hot trend", FOX News, August 17, 2015, © FOX News Network, LLC
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U.S. Consumers Warm Up To Idea Of Online Grocery Shopping

August 16, 2015: 12:00 AM EST
Online grocery shopping is growing in the United States, driven by demand among busy people who do not have enough time to go to grocery stores. After launching its Aisles Online grocery shopping program in spring 2015, Hy-Vee has seen its stores averaging about 1,300 online orders per week. Other grocers, including Safeway and Giant, and other retailers, such as Wal-Mart, Publix, and Kroger, are also launching their respective online shopping programs. Online retailers, such as Amazon, Peapod, and Door to Door Organics, are also offering online grocery shopping services.
Patt Johnson, "Online groceries becoming a popular option", The Des Moines Register, August 16, 2015, © www.desmoinesregister.com
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Baked Goods Volumes Stagnant, Held Back By Bread

August 16, 2015: 12:00 AM EST
The value of the global baked goods market continues to grow, though volume is stagnant, thanks to bread’s “lackluster performance,” according to Euromonitor. Buoying baked goods generally are smaller categories such dessert mixes and frozen baked items. The global market will reach $339 billion in value this year, a five percent growth rate. The researcher notes that snack products such as cakes and pastries are showing healthy growth. But, a global shift in consumer tastes from carbs to protein-rich foods “does not bode well for packaged baked goods manufacturers” who are fighting to stay profitable as retailer space consolidates further.
Pinar Hosafci, "What's New in Baked Goods in 2015?", Report, Euromonitor International, August 16, 2015, © Euromonitor International
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Florida Grocery Chain Goes Full Tilt Into Online Cake Ordering

August 14, 2015: 12:00 AM EST
Florida-based Publix Super Markets is now offering cakes on their Web site that can be picked up at any of their 1,103 stores in six states. The company does not offer wedding cakes as part of the service, because of their intricacy. But customers can order “decadent dessert cakes" or "special-edition cakes" online. Industry analysts say the idea of ordering online has been tried and abandoned a couple of times by Publix and other grocers for logistical reasons. But now retail chains are feeling competitive pressure to provide online ordering convenience as Internet retailers like Amazon.com tiptoe into food ordering and delivery.
John Ceballos, "Publix adds cakes to online ordering service", The Ledger, August 14, 2015, © TheLedger.com
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Australia Has Become A Laboratory Of Fast-Food Innovation

August 13, 2015: 12:00 AM EST
Australia has not escaped the obesity epidemic – the government says 40 percent of adults are “dangerously obese” – thanks to a poor diet. In fact, Australians are fast food junkies, according to a recent study: they consume three times more junk food than the recommended daily allowance. That fact has led fast food companies to turn the country into a sort of laboratory of innovation. Domino's, McDonald's, KFC and Pizza Hut are all testing new marketing and delivery technologies. Domino's has launched a driver-tracking system that lets customers follow their pizzas' journeys using smartphones, tablets and TV screens. McDonald's restaurants in the country are equipped with touchscreen kiosks that allow customization of burgers with different toppings and condiments.
Jane Wardell, "Australia's taste for fast food puts innovation on menu", Reuters, August 13, 2015, © Thomson Reuters
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Subscription Box Companies Make Money Selling Free Samples

August 12, 2015: 12:00 AM EST
One of the newest formulas for online retail success is the theme-based subscription box that arrives – at $10 to $30 per shipment -- full of stuff the company got as free samples from other companies. The concept originated with two Harvard Business School graduates who created Birchbox. The company, for $10 a month, mails a box packed with free sample cosmetics products. A slew of competitors now offer doomsday preparation supplies, pet treats, Japanese snacks, recipes and ingredients, wine, children’s products, socially responsible goods, and books (and trinkets) for young adults. Some observers think the subscription box phenomenon may be a bubble about to burst, but that’s not deterring copycats: “[The economics are] alluring enough that new players keep charging in."
Stacy Cowley, "Want to Shop for a Surprise? Try a Subscription Box", The New York Times, August 12, 2015, © The New York Times Company
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Insight For Grocery Stores: Millennials Are A Unique Breed Of Shopper

August 11, 2015: 12:00 AM EST
A market research report finds that Millennials are more “spontaneous and adventurous” than older generations when it comes to buying foods and beverages. That spontaneity has had a major impact on the retail grocery industry, leading to revamped grocery stores and new grocery shopping formats. But to further attract Millennials, stores need to focus their marketing on carefully tailored, personalized communications (i.e., via mobile devices) that emphasize convenience and affordability. Forty-nine percent of Millennials said household budget limitations are the top restraint on grocery shopping.
"Spontaneous and Flexible Eating Habits Point to the Future of Grocery Shopping", News release, MSLGroup report, "Food Shopping in America", August 11, 2015, © MSLGroup
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Vegan Cinnamon Roll Bakery Takes Its Success Formula Nationwide

August 11, 2015: 12:00 AM EST
A four-year-old bakery that won major funding ($200,000) on an entrepreneurial TV show announced a deal with a franchising agent and commitments from 25 franchisees. Hugely popular California-based Cinnaholic Vegan Bakery specializes in vegan cinnamon rolls that can be customized with 30 flavors and toppings. An Atlanta Franchise Group spokesman said it got involved with Cinnaholic because it is riding the trend away from “cheap sweets into gourmet desserts,” and a growing preference for quality over quantity. The first franchise locations will open in Southlake, Texas, and Ocean City, Md., to be followed by shops in Las Vegas, Anaheim and Dallas. 
"Vegan Gourmet Bakery Cinnaholic set to Open 25 Locations", News release, Cinnaholic Vegan Bakery, August 11, 2015, © Cinnaholic Vegan Bakery
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China’s App-Based Food Delivery Industry Is Booming

August 9, 2015: 12:00 AM EST
Startup food delivery companies backed by big investors like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have tapped into a vibrant market in China, as diners increasingly choose to order in. The app-based startups are providing stiff competition for struggling KFC and McDonald’s that have for years maintained armies of bike- or motorcycle-riding food couriers. New companies like Ele.me and Meituan Waimai that use mobile apps achieve economies of scale by partnering with thousands of Chinese restaurants and other food outlets. In 2014 the startup bike courier companies delivered $15.7 billion worth of food, a 54 percent increase over 2013, according to one research firm.
Laurie Burkitt, "In China, Fast-Food Fight Turns to Delivery", The Wall Street Journal, August 09, 2015, © Dow Jones & Company, Inc.
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Several National Sandwich Chains Pick Up The Slack As Subway Falters

August 4, 2015: 12:00 AM EST
As the fortunes of customizable sandwich giant Subway continue downward, other sandwich chains are rushing in to capture the attention of Subway’s former customers. All are a testament to the durability of the sandwich, and its components: meat, cheese, veggies and condiments stuffed between two slices of bread.  Among the Subway (and local sub shop) competitors that have emerged recently (in the Sacramento, Calif., area and elsewhere) are Which Wich (Texas), Jersey Mike’s (N.J.), and Jimmy John’s (Ill.). Each offers a slightly different spin on the customizable sandwich formula. Nation's Restaurant News labeled Jersey Mike’s the fastest-growing chain of 2015.
Sonya Sorich , "The next Subway? Get ready for more sandwich chains", Sacramento Business Journal, August 04, 2015, © American City Business Journals
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NPD Says Independent Restaurants Slid Three Percent Since 2014

August 3, 2015: 12:00 AM EST
The total number of U.S. restaurants dropped one percent since last year to 630,511 units, thanks largely to a three percent drop in independents, according to NPD Group. A one percent increase in chain restaurants offset the drop in total restaurants. Fast casual chain restaurants soared seven percent. The drop in independents was largely due to a three percent slide in full-service independents, including casual dining, midscale/family dining, and fine dining restaurants. An NPD Group analyst said independent restaurants have it rough, especially in a down economy, because they do not have the resources of a chain to sustain themselves in hard times.
"Independent Restaurant Counts Decline by Three Percent Bringing Total Restaurant Units Down by One Percent, Reports NPD", News release, NPD Group, August 03, 2015, © NPD Group
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Company Tackles Food Waste By Turning Expiring Fruit Into Edible Powders

July 31, 2015: 12:00 AM EST
A sign of the growing movement to reduce food waste – 1.3 billion tons a year globally -- is the launch of a Swedish company that has figured out a way to turn expiring fruit that can’t be sold into powders that can be used as yogurt toppings, or as a baking or ice cream making ingredient. FoPo, which is testing the powders as a form of disaster relief in the Philippines, launched a Kickstarter campaign in May that raised more than $25,000. Ten local supermarkets are donating near-expired produce, and 26 stores have offered to buy back the finished powder.
Hallie Steiner, "FoPo", JWT Intelligence, July 31, 2015, © J. Walter Thompson Company
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Restaurant Operators Remain Pessimistic About Their Industry

July 31, 2015: 12:00 AM EST
The National Restaurant Association’s Restaurant Performance Index (RPI) slid for the second consecutive month in June, the result of a fairly gloomy mood among restaurant operators. The RPI dropped 0.4 percent from May to 102.0. Though the decline put the RPI at its lowest point in nine months, it was nevertheless the 28th month in a row that the index stood above 100, an indicator of continued expansion. Same-store sales and customer traffic levels remained positive in June, the NRA said, but the overall RPI declined because of “dampened optimism among restaurant operators.”
"Dampened outlook causes RPI slip", News release, NRA, July 31, 2015
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It’s Time For Small Businesses To Prepare For “Social Commerce”

July 30, 2015: 12:00 AM EST
The big social networks are taking a giant leap forward into the online retail world dominated by Amazon and eBay. No longer content to simply provide links to retail Web sites, Google, Pinterest, Facebook and Twitter will soon be selling products directly on their sites, a trend called “social commerce.” The phenomenon, rolling out over the next 12 to 18 months, will make it even more critical that small businesses engage potential customers by marketing via social media. To make it happen they will need to take several preliminary steps: identify the networks customers use, determine which networks are used by the most profitable customers, know each network’s technical requirements, and register with each network. It is critically important to be able to show that shipping and customer service are efficient and top-notch.
Alec Bertram, "The imminent invasion of social commerce", The Guardian, July 30, 2015, © Guardian News and Media Limited or its affiliated companies
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Bakery’s “Breaking Bread” Tour Hopes To Spur More Family Meals

July 29, 2015: 12:00 AM EST
A consumer survey conducted by a California artisanal bread bakery finds that a large majority (92 percent) of Americans say eating a quality meal – “breaking bread” – with friends and family is a great way to stay connected in an era of “on-the-go” lifestyles. Only a third say they eat dinner at a table with family without distractions. La Brea Bakery hopes to reverse that trend by introducing “top-of-the-line artisan creations” in several U.S. cities this summer. The idea is to present fresh recipe ideas for families and provide “opportunities to connect over bread.” The Cross-Country Breaking Bread Food Truck Tour will stop at various community events and grocery stores in eight cities, providing samples of La Brea breads and other foods, along with special offers.
"New Survey Reveals Americans Want To Spend Quality Time Together Over A Good Meal", News release, La Brea Bakery, July 29, 2015, © La Brea Bakery
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Dangerous Pathogen Should Be Added To Official Food Safety List

July 23, 2015: 12:00 AM EST
A study by U.S. and Danish researchers confirms that the increasing antibiotic resistance of the harmful bacteria Klebsiella pneumoniae poses a serious public health threat. The researchers compared K. pneumoniae isolates from retail meat products and human clinical specimens to assess their similarity. They looked at turkey, chicken and pork products sold in nine major grocery stores in Arizona, then analyzed urine and blood samples taken from local residents suffering from infections during the same time period. Forty-seven percent of the 508 meat products purchased harbored Klebsiella, and many of the strains were antibiotics-resistant. The researchers suggest that Klebsiella be added to the official list of dangerous pathogens in food products.
Lance B. Price et al., "Intermingled Klebsiella pneumoniae populations between retail meats and human urinary tract infections. ", Clinical Infectious Diseases, July 23, 2015, © Price et al.
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Mom And Pop Carryout Stores Can Profit From A Healthier Menu

July 22, 2015: 12:00 AM EST
People living in low-income neighborhoods tend to spend a larger portion of their food dollars at carryouts and fast food outlets, which are not known for healthy menus. But now a three-phase test program conducted in Baltimore, Md., has found that small carryout shops can profitably offer a wider variety of healthy foods. The program not only improved eating habits in low-income, African-American communities, it increased revenues in mom and pop stores by as much as 25 percent. The program involved use of the word “fresh” instead of “healthy” on redesigned menus, and introduction and promotion of healthier side dishes and entrees (e.g., grilled as opposed to fried chicken). Analysis of store receipts showed that revenue from healthy items in participating stores increased by 62 percent.
Seung Hee Lee-Kwan et al., "Environmental Intervention in Carryout Restaurants Increases Sales of Healthy Menu Items in a Low-Income Urban Setting. ", American Journal of Health Promotion, July 22, 2015, © American Journal of Health Promotion
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Hawaiian Restaurant Chain Wraps Its Hot Dogs In An Innovative Bun

July 17, 2015: 12:00 AM EST
A small but growing Hawaiian hot dog restaurant chain has invented, and popularized, a new way to wrap a hot dog or any kind of sausage. The restaurants and the wrap are called Puka Dog, a name derived from an island word that means bicycle spoke. The dough for the bun is specially baked at a company bakery on rods that create a hefty cylinder of bread. Into that go the condiments – lilikoi mustard, mango or papaya relish, garlic lemon secret sauce – and then the hot dog or sausage. “It’s like a festival in your mouth,” says owner Rick Quinette. “And a neat one, at that.”
Brittany Lyte, "Not your average lunch in a bun", The Garden Island, July 17, 2015, © Thegardenisland.com
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Carrefour Reports Strong Revenue Growth In 1H Of 2015

July 16, 2015: 12:00 AM EST
French retailer Carrefour reported sales rose 5.0 percent to €42.3 billion in the first half of 2015. In France, total growth, without petrol sales, reached 6.3 percent, with organic growth at 1.8 percent. International sales grew 7.3 percent, excluding petrol sales. For the second quarter of 2015, sales rose 4.2 percent to €21.4 billion, with sales in France growing 5.5 percent and sales in international markets rising 5.6 percent.
"Carrefour: Continued Sales Growth In The First Half And The Second Quarter Of 2015", Carrefour, July 16, 2015, © Carrefour
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Lidl Posts Record 2014 Sales Growth As U.K. Shoppers Flock To Discounters

July 15, 2015: 12:00 AM EST
German discount grocery retailer Lidl posted a U.K. sales increase of $1.1 billion in 2014 to a record $6.25 billion. The stellar performance is a solid indicator that price-conscious British shoppers are abandoning mainstream grocery chains in droves. According to Lidl, the 21 percent increase in annual sales was due to growth in new patrons and higher spending from current customers. To accommodate the growth, the company will move its U.K. headquarters from Wimbledon to a much larger facility in Tolworth by 2018.
Edward Devlin, "Lidl sales climb £700m to record £4bn", The Grocer, July 15, 2015, © William Reed Business Media Ltd
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Co-founders Of Walmart's China E-commerce Venture Resign

July 14, 2015: 12:00 AM EST
Wal-Mart Stores Inc. said the co-founders of its Yihaodian e-commerce business in China will leave the company. Citing plans to pursue new ventures, Yu Gang and Liu Junling are resigning as chairman and chief executive, respectively, of the online retailer. Wal-Mart holds a 51 percent stake in Yihaodian, which represents the American retailer's efforts to expand its online business in China. After the founders' departure, Wal-Mart is expected to expand its role in running the company, which for years has resisted the retail giant's efforts to consolidate the companies' logistics operations.
Sarah Nassauer And Laurie Burkitt, "Co-Founders of Wal-Mart’s Chinese E-Commerce Venture to Leave", Wall Street Journal, July 14, 2015, © Dow Jones & Company Inc.
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Dining Out Is Not A Healthy Choice

July 9, 2015: 12:00 AM EST
A U.S. scientist who analyzed eight years of data from a national health survey reports that Americans who eat at fast food and full service restaurants generally consume 200 more calories a day, compared to eating at home. In addition, they tend to take in more cholesterol, sodium, fat, and saturated fat. Restaurant diners tend to take in more healthy nutrients (e.g., certain vitamins, potassium and omega-3 fatty acids) than at-home or fast food diners, but they also also consume a lot more sodium and cholesterol. Fast food adds an average of 300 milligrams of sodium to the daily intake, while restaurant food adds 412 milligrams.
R An, "Fast-food and full-service restaurant consumption and daily energy and nutrient intakes in US adults", European Journal of Clinical Nutrition, July 09, 2015, © Macmillan Publishers Limited
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Walgreens Boots Alliance CEO Reveals Plan To Grow Company Through Acquisitions

July 9, 2015: 12:00 AM EST
Walgreens Boots Alliance Inc. plans to grow its business by acquiring other companies, according to recently named permanent CEO Stefano Pessina. According to analysts, the company could choose to buy United States and foreign-based firms. It could even acquire a pharmacy benefits manager, a distributor of pharmaceutical products, even pharmacies owned by retailers. Pharmacy benefits management companies Express Scripts Holding Co. and UnitedHealth Group's OptumRx would be likely acquisition targets should the company opt to focus on the segment.
Ryan Sachetta, "Walgreens CEO Pessina Signals He’s Looking for Merger Targets", Bloomberg, July 09, 2015, © Bloomberg L.P.
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Walgreens Boots Alliance Posts Strong Revenue Growth In 3Q Of FY 2015

July 9, 2015: 12:00 AM EST
Walgreens Boots Alliance reported net earnings increased 82.4 percent to $1.3 billion for third quarter of fiscal 2015, compared with the same period in the previous year. Adjusted net earnings for the quarter rose 39.9 percent to $1.1 billion, compared with the same quarter a year ago. Adjusted net earnings per diluted share grew 22.9 percent to $1.02, compared with the same period of fiscal year 2014. Net sales in the quarter jumped 48.4 percent to $28.8 billion, mainly due to the inclusion of Alliance Boots for the whole quarter.
"Walgreens Boots Alliance Reports Fiscal 2015 Third Quarter Results; Board Names Stefano Pessina as CEO", Walgreens Boots Alliance , July 09, 2015, © Walgreens Boots Alliance, Inc.
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Avon Sells Liz Earle Unit To Walgreens Boots Alliance

July 9, 2015: 12:00 AM EST
Avon Products, Inc., said it has sold its Liz Earle natural skincare brand to Walgreens Boots Alliance. Valued at £140 million, the all-cash transaction transfers ownership of the brand to the global pharmacy and retail company. Avon acquired UK-based Liz Earle in March 2010 and has since managed the company as an independent division, separate from its core direct-selling business.
"Avon Announces Divestiture of Liz Earle", Avon, July 09, 2015, © Avon Products, Inc.
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Starbucks Adds Local Food Items To Its Menu

July 9, 2015: 12:00 AM EST
Starbucks is the latest to latch on to a food trend that is rippling through the restaurant industry. Following the lead of chains like McDonald’s, Shake Shack and Firehouse Subs, Starbucks is incorporating locally sourced foods into its menu. In the Washington, D.C., area, for example, Starbucks patrons can buy sweet potato cakes from Delectable Cakery, which also has partnerships with Nordstrom, HoneyBaked Hams and Wegman’s. A few Starbucks stores in New York City have worked out a deal with Bantam Bagels, which provides stuffed bagels from its lone store in Manhattan’s West Village. Industry watchers say the local partnerships give the big chain some local, upscale nuance that appeals to millennials.
Ethan Lascity, "Starbucks is testing a completely new food strategy", Business Insider, July 09, 2015, © Business Insider Inc.
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Texas Boule Baker Sells His Pricey Loaves By Subscription

July 8, 2015: 12:00 AM EST
A transplanted New Yorker (and University of Texas neuroscientist) who is fascinated by the chemistry of bread making has launched a bakery specializing in French style organic sourdough boules. The artisanal boules -- basically round, slightly flattened loaves – can now be purchased through a subscription service at 10 loaves for $100. Miche Bread founder Sandeep Gyawali uses whole wheat, whole rye and whole spelt grains that he mills himself, forms the boules that are leavened naturally and fermented slowly, a four-day process.
Addie Broyles, "Austin’s first bread subscription service launches", Austin360, July 08, 2015, © Statesman Media
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Supermarket Chain Albertsons Prepares For IPO

July 8, 2015: 12:00 AM EST
Supermarket chain Albertsons filed for an initial public offering. Established by Joe Albertson in Boise, Idaho, in 1939, Albertsons became a leading retailer in the western United States. By going public, Albertsons will emerge from years of ownership under a consortium led by investment firm Cerberus Capital Management. In 2014, the consortium acquired supermarket chain Safeway for $9.2 billion.
Michael J. de la Merced, "Albertsons, Big Grocery Chain, Files for I.P.O.", The New York Times, July 08, 2015, © The New York Times Company
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Japan's Online Retail Market Expected To Grow Significantly, Euromonitor Says

July 8, 2015: 12:00 AM EST
Japan's online retail market is expected to grow 60.6 percent by 2019, after growing 84.3 percent from 2009 to 2014, according to Euromonitor. Japan's e-commerce sector did not boom as immediately as those in other countries, hindered by many consumers' reluctance to buy online. Changes in market conditions and consumer behavior, however, prompted Japanese shoppers to more readily adopt online buying. Data from the market research firm revealed the overall market was valued at 7.03 trillion in 2014. Japan's online market for apparel and footwear grew to 888.7 billion yen, or $7.25 billion, after growing 70.4 percent since 2009. Also, data from Euromonitor revealed companies that sell exclusively online dominate Japan's e-commerce market.
Kelly Wetherille, "Japan Sees E-tailing Boom as Retailers Go Omnichannel", Women’s Wear Daily, July 08, 2015, © Fairchild Fashion Media
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Tesco Kipa Gets New CEO

July 6, 2015: 12:00 AM EST
Tesco appointed William Patrick Bill O'Neill as chief executive officer of its Tesco Kipa unit in Turkey. Tesco Kipa's earlier restructuring saw the closure of a number of underperforming stores in the eastern region of the country. O'Neill's appointment seems to signal the retailer's plan to operate its Turkey business separately from its European division.
"Tesco's new Turkish CEO", Retail Analysis, July 06, 2015, © The Institute of Grocery Distribution
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Wal-Mart De Mexico Posts Strong Revenue Growth In 2Q 2015

July 6, 2015: 12:00 AM EST
Wal-Mart de Mexico reported sales grew 9.9 percent for the second quarter of 2015, compared with the same quarter of the previous year. Sales in Mexico and Central America rose 8.1 percent in June 2015 to 37.13 billion Mexican pesos, or $2.36 billion, the company said. This brings the total for the first half of the year to 224.71 billion pesos, an increase of 9.6 percent from the same period of 2014. In Mexico, same-store sales grew 3.6 percent in June and were 5.2 percent higher in the first six months than the previous year.
Anthony Harrup, "Wal-Mart de Mexico Keeps Up Strong Sales Growth", Wall Street Journal, July 06, 2015, © Dow Jones & Company, Inc.
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Amazon Celebrates 20 Years Of Online Business With Prime Day

July 6, 2015: 12:00 AM EST
Online retailer Amazon will launch Prime Day in celebration of the company's 20th anniversary on July 15, 2015. According to the company, the “global shopping event” will offer more deals than Black Friday, the biggest shopping event of the year that happens after Thanksgiving. As with Black Friday, shopping deals will start at midnight, with new discounts offered as often as every 10 minutes. Amazon said the event will be open to all members of the company's Prime program in the United States, the UK, Spain, Japan, Italy, Germany, France, Canada, and Austria.
Jonathan Chew, "Amazon’s new Prime Day will be a massive ‘global shopping event’", Fortune, July 06, 2015, © Time Inc.
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Forecasters See A Big Future For VR In Retail, CPG

July 6, 2015: 12:00 AM EST
Marketing and technology experts believe that someday virtual reality will transform advertising for a wide range of products. A Gartner Group analyst says the eventual applications are hard to imagine now, but their arrival seems almost inevitable. Using virtual reality to visualize products will give people “a different way of thinking about them." Virtual reality products themselves are in their infancy, a long way from becoming a viable consumer advertising medium. That’s not stopping the forecasters and visionaries from pondering the future. Gartner says that within three years there will be 25 million VR (or nearly VR) headsets in use. One VR evangelist notes: "I'd be shocked if within a year's time there isn't something a retailer or CPG has done" with the technology.
Jack Neff, "How Virtual Reality Could Change Shopper Marketing, B2B and More", Advertising Age, July 06, 2015, © Crain Communications
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