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Asda Launches TV Ad Campaign Marking 50th Anniversary

July 6, 2015: 12:00 AM EST
Asda launched a TV ad campaign, in time for the retailer's celebration of its 50th anniversary in 2015. Featuring the tagline “Save Money. Live Better,” which is used by parent company Walmart, the TV commercial is aimed at celebrating what customers love about shopping with the retailer. Created by VCCP, the ad also features the song “Oh My Love,” by the American band The Score.
Omar Oakes, "Asda brings back 'pocket tap' and adopts Walmart strap line in TV ad", Marketing Magazine, July 06, 2015, © Haymarket
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Tesco Creates Short List Of Bidders For South Korea Business

July 2, 2015: 12:00 AM EST
Private equity firms Carlyle Group and MBK Partners are included in the short list of bidders for Tesco PLC's retail business in South Korea. Valued at $6 billion, the deal could become the biggest ever private equity buy in Asia. Tesco's plan to sell its South Korean unit is part of the company's efforts to reduce debt and finance a turnaround plan at its home market, the UK.
Joyce Lee, Denny Thomas and Elzio Barreto, "UPDATE 1-Carlyle, MBK on bidders' shortlist for Tesco S.Korea unit-sources", Reuters, July 02, 2015, © Thomson Reuters
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Carrefour Adopts Six Strategies For Growing Business In Spain And France

July 2, 2015: 12:00 AM EST
Retailer Carrefour is growing its business in France and Spain by adopting several strategies, including highlighting local products and its hypermarket-store format. Also, the French retailer is competing directly with discount retailers with its hypermarkets. To attract more consumers, the company is designing its format around the lives of its shoppers, emphasizing its multichannel connections and capability, and promoting frequent customer visits for its smaller stores.
Gavin Rothwell , "Six ways Carrefour is driving growth", Retail Analysis, July 02, 2015, © The Institute of Grocery Distribution
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Metro Cash & Carry Announces Plan To Expand Network Of Wholesale Stores In India

July 1, 2015: 12:00 AM EST
German retailer Metro Cash & Carry India plans to increase the number of its wholesale stores in the country from the current 18 to 50 in the next five years, according to the company's managing director Rajeev Bakshi. Despite the slowdown in consumer demand, India remains an important market for the company, Bakshi said. Metro Cash & Carry spends an average of Rs 70 crore for every wholesale outlet it opens in the country, which accounts for 2.5 percent of the company's total store count worldwide.
Anshul Dhamija, "India a top investment country for METRO Cash & Carry", Forbes India, July 01, 2015, © Forbesindia.com
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Papa John’s Hops On “Free-From” Bandwagon

June 30, 2015: 12:00 AM EST
Following in the footsteps of fast-food competitors Chipotle, Panera Bread and Pizza Hut, Papa John’s International Inc. says it will spend a small fortune to remove as many as 14 disliked artificial ingredients from its menu items by the end of 2016. It has already eliminated monosodium glutamate (MSG) from salad dressings and trans fats from garlic sauce. On the new shun list are corn syrup, artificial colors and various preservatives used in dipping sauces for pizza and chicken poppers. Pizza Hut announced similar plans a month ago. The initiative will cost Papa John’s about $100 million a year.
"Papa John's spending $100M to clean up menu", MSN, June 30, 2015, © Microsoft
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Tesco Says UK Sales Improve Slightly, Gains More Customers

June 26, 2015: 12:00 AM EST
Tesco reported like-for-like sales in the UK grew 1.3 percent for the quarter ending May 30, 2015, compared with the same period in the previous year. In terms of volume, like-for-like sales in the country rose 1.4 percent, with transactions going up 1.3 percent. According to the company, it gained 180,000 more shoppers during the report period. Also, the company reported like-for-like sales growth in Central Europe and Turkey.
"Tesco First Quarter Trading Statement", Tesco, June 26, 2015, © Tesco PLC
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Delhaize, Ahold Announce Merger Deal

June 24, 2015: 12:00 AM EST
Retailers Delhaize Group and Koninklijke Ahold announced their agreement to merge. To be named Ahold Delhaize, the combined company will have a total workforce of 375,000 associates serving more than 50 million customers each week in Europe and the United States. Expected to create run-rate synergies of €500 million yearly, the deal will create significant value for the parties involved. Combined, the companies earned €54.1 billion in net sales, with adjusted EBITDA of €3.5 billion, net income from continued operations of €1.0 billion, and free cash flow of €1.8 billion in 2014.
"Ahold and Delhaize announce intention to merge", Ahold, June 24, 2015, © Ahold
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Millennial Women Are A Driving Force Behind Pizza Popularity

June 24, 2015: 12:00 AM EST
A study of “pizza lover” attitudes toward pizza found that 63 percent (of 1,004 surveyed) are women who go out for pizza or buy frozen pizza every month. Forty-one percent of those are millennials and 68 percent of all pizza lovers exercise two or more times per week. It is important for this health-conscious group to find natural ingredients and gluten-free options. Sixty percent say they avoid products that contain synthetic hormones, high fructose corn syrup, trans fat, and artificial preservatives. Millennials drive many of today's pizza trends and inspire behaviors such as social sharing and searching the Internet for pizza information.
"New Study by Smart Flour Foods & Center for Generational Kinetics Uncovers Emerging Pizza Trends", News release, Smart Flour Foods, June 24, 2015, © Smart Flour Foods
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Wal-Mart Charges Suppliers For Stocking And Warehousing Inventory

June 23, 2015: 12:00 AM EST
Wal-Mart Stores said it will impose charges on all suppliers for stocking their products in new stores and for warehousing inventory. Suppliers have been informed of the move, which is part of Wal-Mart's efforts to control costs following wage hikes for its employees. Marking a shift in Wal-Mart's relationship with suppliers, the changes will affect 10,000 suppliers to its stores in the United States.
Nathan Layne, "Wal-Mart to impose charges on suppliers as its costs mount", Reuters.com, June 23, 2015, © Thomson Reuters
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Tesco Is Worst Violator Of Industry Code Of Practice, Suppliers Say

June 22, 2015: 12:00 AM EST
Tesco is the worst among leading retailers at complying with government-sanctioned code of practice covering business dealings with suppliers, according to a survey of manufacturers. Results of the survey conducted by the UK's grocery regulator revealed 4 percent of Tesco's direct suppliers said the company never complied with the industry code, while another 30 percent said it “rarely complied” with the code. Tesco said the survey, which covered over 1,000 manufacturers, was a snapshot of its suppliers' views, as the retailer has 3,000 suppliers in the UK.
Sarah Butler, "Tesco suppliers say retailer worst at following grocery code of practice", The Guardian, June 22, 2015, © Guardian News and Media Limited
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Belgium Sanctions Retailers And Suppliers For Price-fixing

June 22, 2015: 12:00 AM EST
Belgium's competition authority fined 17 supermarkets and suppliers a total of €174 million, or $198.2 million, for fixing the prices of healthcare products and toiletries. Carrefour SA and Colruyt SA face the biggest penalties, with Carrefour agreeing to pay €36.4 million and Colruyt, €31.6 million. According to the Belgian agency, price-fixing activities occurred during 2002 to 2007, with Colgate-Palmolive providing the information about the violations and, hence, escaping a penalty.
Gaspard Sebag, "Carrefour, Colruyt Get Biggest Fines in Belgian Cartel Case", Bloomberg, June 22, 2015, © Bloomberg L.P.
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Tesco Malaysia Installs NCR Self-checkout Technology

June 22, 2015: 12:00 AM EST
Tesco Stores (Malaysia) Sdn Bhd chose NCR Corporation's self-checkout technology for its self-service checkout counters in stores across the country. To be installed first at the company's IOI City Mall store in Putrajaya, the system will allow shoppers to scan, bag, and pay for products themselves, eliminating the need to wait in long queues. NCR said its self-checkout solution comes with user-friendly interface and touchscreen designed to guide shoppers through the checkout process.
"Tesco M'sia to give customers first taste of new 'SELF-CHECKOUT' counters", Malaysia Chronicle, June 22, 2015, © Malaysia Chronicle
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Edible Marijuana Is A Megabucks Industry Waiting To Happen

June 20, 2015: 12:00 AM EST
Edible marijuana products are expected to be a multimillion-dollar food industry niche – on the U.S. West Coast, at least -- in the coming years, if attendance at San Francisco’s first annual “baked sale” is any indication. But first some hurdles need to be overcome. Smoked marijuana and eaten marijuana are metabolized differently in the body. Peak levels of THC occur rapidly when smoked, but can take hours when eaten, making it difficult to gauge how much to eat and how quickly. Some entrepreneurs strongly advocate implementing best practices for marijuana edibles, including product testing to determine ingredient levels and accurate labeling. Others, however, say it’s just as important to educate buyers on how to eat edibles responsibly.
Melia Robinson, "San Francisco's first marijuana 'baked sale' shows that edibles are the next multimillion-dollar food industry", Business Insider, June 20, 2015, © Business Insider Inc.
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Edible Cookie Dough Turns Hobbyist Into Entrepreneur

June 18, 2015: 12:00 AM EST
A 27-year-old entrepreneur and he husband have developed an edible cookie dough that is being marketed successfully on her Web site using social media like Instagram. The dough, which is available in 19 flavors, can be baked into cookies or eaten raw safely because it is made with a pasteurized egg product. Cookie DŌ founder Kristen Tomlan quit her full-time job with a brand management company when she realized that her cookie baking hobby – especially the edible raw dough part – just might be unique. Containers of dough cost $14, with four-packs and six-packs available.
Aly Weisman, "A 27-year-old quit her job to make edible cookie dough and now everyone's obsessed with it", Business Insider, June 18, 2015, © Business Insider Inc.
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Schwarz Group Aims For 25 Percent Sales Growth For Lidl

June 18, 2015: 12:00 AM EST
Schwarz, owner of discount supermarket chain Lidl, wants to increase sales by more than 25 percent to €100 billion, or $114 billion, by 2020, according to CEO Klaus Gehrig. To help achieve this goal, Lidl will significantly increase the number of its stores and reorganize its Kaufland hypermarkets. In 2014, Schwarz reported sales grew 7 percent to €79.3 billion, overtaking Carrefour to become Europe's largest retailer. Lidl operates almost 10,000 stores across the continent.
Emma Thomasson, "Lidl owner seeks to lift sales by a quarter by 2020 -Manager Magazin", Reuters, June 18, 2015, © Thomson Reuters
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Kroger's 1Q 2015 Performance Tops Analysts' Predictions

June 18, 2015: 12:00 AM EST
Retailer Kroger Co. said its net earnings reached $619 million, or $1.25 per diluted share, in the first quarter of fiscal year 2015. Same-store sales grew 5.7 percent during the period, with fuel sales excluded. Total sales rose 0.3 percent to $33.1 billion, compared with $33.0 billion from last year. With fuel sales excluded, total sales for the period grew 6.4 percent from the previous year. For the quarter, Kroger recorded a LIFO charge of $28 million.
"Kroger Reports Strong First Quarter Results", Kroger, June 18, 2015, © The Kroger Co.
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Retailers Expected To Acquire Vendors, E-commerce Firms, Analysts Say

June 17, 2015: 12:00 AM EST
Retailers are expected to acquire vendors and e-commerce providers starting later in 2015 and into the next year, as part of their efforts to provide seamless online and in-store shopping experience to their customers. Factors driving this trend include the stock market's demand for faster growth and fast-changing demands among consumers, according to market analysts and industry consultants. Also expected to further drive retailers to adopt consolidation moves is companies' efforts to extend their brands into the off-price sector.
Arthur Zaczkiewicz, "Scaling Up: M&A Activity to Rise as Omnichannel Retailing Grows", Women’s Wear Daily, June 17, 2015, © Fairchild Publishing, LLC, a subsidiary of Penske Business Media, LLC
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Sephora Names Deborah Yeh SVP Of Marketing And Brand

June 17, 2015: 12:00 AM EST
Beauty retailer Sephora promoted Deborah Yeh to SVP of marketing and brand, according to Sephora Americas CEO Calvin McDonald. In 2012, Yeh joined Sephora as vice president of marketing and has led the company's integrated marketing, media, public relations and events, loyalty programs, and operations teams. As SVP of marketing, Yeh's responsibilities will include supervision of the creative team.
Julie Naughton , "Sephora: Deborah Yeh Named SVP, Marketing and Brand", WWD.com, June 17, 2015, © Fairchild Fashion Media
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Latina Consumers Spend More On Cosmetics In 2014, Outspend Other Demographics, Study Shows

June 16, 2015: 12:00 AM EST
Latinas spent 7.4 percent more on cosmetics in 2014, according to a study by the “Simpre Mujer” magazine. Data from the “Siempre Beauty III: Latinas and Social Media,” by the magazine's publisher Meredith Hispanic Media, revealed overall market retail purchases declined 1.2 percent during the same period. At present, the total beauty market is valued at $4.3 billion, with Latinas accounting for 13 percent of all cosmetics spending. Also, according to the study, millennials were the largest growth factor for the beauty category.
"Siempre Beauty III: The Driving Force Behind Latina Consumer Habits", PRNewswire, June 16, 2015, © PR Newswire Association LLC
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Ranir Returns Wal-Mart Toothbrush Head Production Back From China

June 16, 2015: 12:00 AM EST
Ranir is moving production of store-brand toothbrush heads from China to its headquarters in Michigan, following a request by Wal-Mart. As part of its compliance with Wal-Mart's American-made requirements, Ranir will invest $3 million to expand its high-tech manufacturing facility by 7,500 square feet and hire 19 employees. Almost three years into its “Made in the USA” initiative, Wal-Mart is pushing for a return to the country of offshore manufacturing of products it sells at its stores.
Shandra Martinez , "Wal-Mart's request moves toothbrush production to Michigan from China", Mlive.com, June 16, 2015, © MLive Media Group
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Burger King’s India Strategy Centers On New Vegetarian Menu Items

June 16, 2015: 12:00 AM EST
Burger King faced a puzzling challenge when it decided to open restaurants in its 100th country, India: about half the population does not eat meat. So it’s not likely the Whopper will be a popular menu item. Rather than try to fit a square peg in a round hole, cuisine-wise, the chain decided to adjust to the culture. Burger King reps traveled all over India, gathering intelligence on local food habits. The result? Six varieties of vegetarian sandwiches, vegetarian snackers and other products for non-meat eaters. There’s already a lot of quick-service (QSR) competition in India – from McDonald’s, KFC and Subway – but it’s a huge opportunity. The market is growing at 26 percent a year, and QSR represents only two to three percent of the country’s food industry. Burger King now has 16 restaurants in India, with seven more on the way soon.
Avinder Batra, "Burger King drops tradition for Indian taste buds, gets vegetarian delicacies on its menu", The Economic Times, June 16, 2015, © Times Internet Limited
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Starbucks Abandons Plan To Run Separate Retail Baked-Goods Shops

June 16, 2015: 12:00 AM EST
A Starbucks executive says the 23 La Boulange baked-goods shops it acquired three years ago will be shut down because they are a “distraction.” Instead, says Cliff Burrows, the company will expand the brand within its own outlets. Starbucks bought parent company Bay Bread in 2012 for $100 million, hoping to burnish its own lackluster food menu. Although the company said at the time that it planned to open more La Boulange shops, the idea quickly faded because they were “not a sustainable model for Starbucks long term." Food nevertheless is important to the company’s growth strategy as it seeks to transform itself INto something more than a retail coffee chain.
Julie Jargon, "Starbucks to Close Its La Boulange Pastry Shops", The Wall Street Journal, June 16, 2015, © Dow Jones & Company, Inc.
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Chinese Luxury Goods Brands Grew Faster Than Foreign Counterparts, DTT's 2015 Report Shows

June 15, 2015: 12:00 AM EST
China's luxury goods companies grew 33.4 percent, significantly outpacing their foreign rivals, according to the “2015 Global Powers of Luxury Goods” report by Deloitte Touche Tohmatsu. Data from the report revealed similar companies in the United States grew 9.4 percent, while UK brands posted 11.1 percent during the period. Of the top 100 fastest-growing luxury-goods companies, seven came from Hong Kong and China, and accounted for as much as 11.3 percent of the total sales. Leading sellers of luxury goods include LVMH Moet Hennessy-Louis Vuitton from France, with $21.76 billion in sales, followed by Swiss company Compagnie Financiere Richemont in second place and The Estee Lauder Companies Inc. from the United States, in third.
Nisha Ramchandani , "China luxury-goods firms growing fastest globally", Asia One, June 15, 2015, © Singapore Press Holdings Ltd . Co.
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Sephora Is Leading In U.S. Prestige Cosmetics Market, Report Shows

June 11, 2015: 12:00 AM EST
In the United States, 90 percent of women who buy prestige beauty and personal care products said they do their shopping at Sephora's retail stores, at the company's online store, or both either occasionally or regularly. Data from the report “2015 PinkReport: The Sephora Shopper” released at the HBA Global Expo event revealed 69 percent of millennials said they shop both in store and online, while 59 percent of Generation X consumers and 49 percent of Baby Boomers said the same thing. Among Boomers, 76 percent said they have shopped at Sephora for three to 10 years or more, while 74 percent of Gen-Xers said they do.
"Sephora Leads in Prestige Market", Happi, June 11, 2015, © Rodman Media
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Whole Foods Will Begin Opening “Streamlined” Stores Next Year

June 11, 2015: 12:00 AM EST
Whole Foods Market, saddled by a reputation as being too expensive (“Whole Paycheck” or "Whole Foods Markup") and facing stiff competition from specialty grocers and big box retailers, in 2016 will begin opening smaller “streamlined” stores offering lower-priced private-label natural and organic products. The company hopes the new stores, to be called 365 by Whole Foods Market, will appeal to younger shoppers looking for more affordable fresh and locally-sourced foods. The new business unit, located in Austin, Texas, will be headed by Jeff Turnas, a 20-year Whole Foods Market employee.
"Whole Foods Market introduces 365 by Whole Foods Market™", News release, Whole Foods Market, June 11, 2015, © Whole Foods Market
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Walgreens Expands Cosmetics Offerings To Attract Customers Back To Stores

June 11, 2015: 12:00 AM EST
Walgreens Boots Alliance Inc. is renovating the cosmetics section of its stores, as part of the drugstore chain's efforts to reconnect with consumers. Also, the company is highlighting its Boots No7 line of skincare products, while scaling back its fresh food lineup. Walgreens is targeting women who are health conscious and who make most of the purchasing decisions of their families. According to the company, results of tests conducted at its Phoenix store revealed consumers are “making more repeat purchases and spending more money” when they visit the store.
Cynthia Koons and Danielle Burger, "Walgreens Touches Up Its Makeup in Bid to Win Back Customers", Bloomberg , June 11, 2015, © Bloomberg
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Lidl Named U.K. Grocer Of The Year, Beating Out Rival Budget Grocer Aldi

June 11, 2015: 12:00 AM EST
German discount grocer Lidl was named Grocer of the Year in the U.K. by Grocer magazine, grabbing the top ranking from rival discounter Aldi. The company also beat out pricier upmarket stores Waitrose and Asda by following through on its strategy of targeting middle- and upper- income grocery shoppers with a “Deluxe” range of store-label food, wine and liquors. The title of Britain’s favorite supermarket, however, went to Tesco, while best online grocer was Ocado, and cheapest mainstream grocer was Asda.
Sean Poulter, "Every Lidl helps store to top spot: Budget chain named Grocer of the Year after beating off finalists including Waitrose ", Daily Mail, June 11, 2015, © Associated Newspapers Ltd
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Lidl Italia Receives Awards From Palo Alto School

June 10, 2015: 12:00 AM EST
Lidl Italia won the Positive Business Award in the innovation, repositioning, and social network categories. Created by the Italian business school Palo Alto School, the award recognizes companies, entrepreneurs, and managers for their understanding of how people's happiness can help build success.
"Lidl Italia Scoops Awards for Innovation and Social Networking", European Supermarket Magazine, June 10, 2015, © European Supermarket Magazine
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Taco Bell Execs Obsess Over Millennial Lingo

June 10, 2015: 12:00 AM EST
Taco Bell knows who its target customer base is – basically, Millennials – and it wants to make sure its executives speak their language. Millennials have “quirks and traits” that set them apart from earlier generations, including a unique and evolving vocabulary. To better acquaint themselves with their patois, Taco Bell execs are treated to a “Millennial Word of the Week,” chosen by twenty-something employees. An example from one e-mail circulated at company headquarters is the word “lit,” used to describe “a certain situation, person, place or thing as awesome/crazy or just 'happening' in general."
Candice Choi, "'Throwing shade'; Taco Bell execs bone up on youth lingo", SFGate, June 10, 2015, © Hearst Communications, Inc.
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Walmart VP Wanda Young Says Retailers Should Shift From Print To Mobile Advertising

June 8, 2015: 12:00 AM EST
Walmart VP of media and digital marketing Wanda Young said retailers are expected to shift their advertising spend from print to mobile. During an interview with The Drum magazine after her presentation at the Mobile Marketing Association's London Forum on June 8, 2015, Young said this trend will be driven by customers' growing consumption of digital media content. According to Young, Walmart is cutting down on print-based advertising and expanding its digital media advertising, as it focuses its marketing toward millennial consumers.
Natalie Mortimer, "Retail spend should shift from print to mobile advertising, says Walmart VP", The Drum, June 08, 2015, © Carnyx Group Ltd
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The Body Shop Says To Use Newlight's AirCarbon As Packaging Material

June 8, 2015: 12:00 AM EST
The Body Shop partnered with Newlight Technologies for a research and development project aimed at integrating AirCarbon materials into packaging of products sold by the beauty retailer. Unlike today's plastics, AirCarbon are not made from fossil fuels. AirCarbon is a thermoplastic material developed by Newlight over 10 years of R&D and is made by “combining air with carbon.” According to The Body Shop, its R&D partnership with Newlight Technologies continues a tradition of leadership in sustainability in the beauty industry.
"The Body Shop and Newlight Form Research and Development Partnership to Launch AirCarbon To The World Of Beauty ", PRNewswire, June 08, 2015, © PR Newswire Association LLC
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Wal-Mart Board Of Directors Elects New Chairman

June 5, 2015: 12:00 AM EST
Wal-Mart Stores, Inc.'s board of directors elected Greg Penner as Board Chairman, effective June 5, 2015. Penner previously served as vice chairman of the board of directors, and will replace Rob Walton, who was chairman since 1992. Penner began as an analyst at Goldman Sachs & Co., then joined Walmart as a management trainee. He rose from the ranks, occupying various positions, including SVP of finance and strategy for walmart.com and SVP and CFO for Walmart Japan. Wal-Mart also reorganized the board's committees, with most of the independent directors serving on at least two board committees.
"Walmart Board of Directors Elects Greg Penner as New Chairman", Walmart, June 05, 2015, © Wal-Mart Stores, Inc.
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Ulta Reports Higher Revenue In 2014, Readies Expansion Moves

June 5, 2015: 12:00 AM EST
Cosmetics retailer Ulta Beauty reported $3.24 billion in sales in 2014, an increase of 21.4 percent compared with the previous year. Seeking to expand to 1,200 stores by 2019, the company said its net income for the first quarter of 2015 rose 34 percent to $66.9 million, or $1.04 per diluted share, compared with $50 million, or $0.77, in the same period of the previous year. At present, the company's share of the beauty market is about 3 percent, according to CEO Mary Dillon, who has pushed the company toward faster growth. Her five-year growth plan includes opening 500 new stores, with e-commerce operations accounting for 10 percent of total sales, and comparable sales growth of 5 percent to 7 percent a year.
Molly Prior, "Ulta’s Growth Spurt", Women’s Wear Daily, June 05, 2015, © Fairchild Fashion Media
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Wal-Mart Plans To Sell Food Products Online In Ottawa

June 5, 2015: 12:00 AM EST
Wal-Mart Canada plans to add food products to its online offerings in the Ottawa region, according to SVP of e-commerce Simon Rodrigue. Already expanding the range of food products available at its conventional stores, Wal-Mart's latest e-commerce initiative is part of the company's efforts to expand its online sales of fresh produce. Also, the company's move is expected to further heat up competition in the country's $120-billion grocery market, analysts said.
Marina Strauss, "Wal-Mart adding fresh food to e-commerce offerings", The Globe and Mail, June 05, 2015, © The Globe and Mail Inc.
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Tesco Hires HSBC As Adviser For Possible Sale Of South Korea Business

June 4, 2015: 12:00 AM EST
UK retailer Tesco appointed HSBC as lead adviser to study the possibility of selling its business operations in South Korea. By selling its South Korean operations, valued at around $6 billion, Tesco can cut its debt and fund its turnaround efforts in the UK. With its credit rated as junk by Moody's and S&P in January 2015, Tesco is struggling to improve its operations and regain market share it had lost to discount retailers Aldi and Lidl in the UK.
Denny Thomas and Prakash Chakravarti, "Tesco hires HSBC to explore sale of $6 billion South Korea arm - sources", Reuters, June 04, 2015, © Thomson Reuters
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Carrefour Italia Opens Virtual Store At Milan's Loreto Metro Station

June 4, 2015: 12:00 AM EST
Carrefour Italia launched a virtual store at the Loreto metro station in Milan. With over 1,000 products available, the virtual store allows consumers to order by scanning the products using their mobile phones. Carrefour partnered with Risparmio Super to launch the cliccaeritira.it online shopping service. Available via the Internet or mobile, the service lets shoppers buy online whenever they want and arrange for their purchases to be picked up from a store or delivered to their home.
"Carrefour Italia launches 200 meter long virtual supermarket at Loreto metro station in Milan", EPR Retail News, June 04, 2015, © EPR Retail News
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Subway Says No More Fake Caramel Color In Its Roast Beef

June 4, 2015: 12:00 AM EST
Subway promises to remove artificial flavors, colors and preservatives from its sandwiches in North America by 2017. The company says the process of “ingredient improvement” has been ongoing for several years. An example is the removal of caramel color from roast beef and ham. It will remove the preservative proprionic acid and replace it with vinegar by 2016. Last year, the company acknowledged it was removing azodicarbonamide from its bread after an online petition noted the chemical was used to make yoga mats. The company’s chief marketing officer says use of simple ingredients is becoming a "necessary condition" to satisfy customers.
Candice Choi, "Eat fresher? Subway also dropping artificial ingredients", The Big Story, June 04, 2015, © The Associated Press
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Whole Foods Opens Store Featuring Health Services Near Dayton, Ohio

June 3, 2015: 12:00 AM EST
Whole Foods opened a new store near Dayton, Ohio, with a staff that includes a personal trainer. Similar to Wal-Mart's strategy of offering health care and other services, the 45,000 sq ft store will offer services the company said will help Whole Foods differentiate itself from rivals, such as Trader Joe's. Wal-Mart's Supercenter stores offer non-grocery services, such as optometry, hair care, and banking.
Ashley Lutz, "Whole Foods is copying Wal-Mart's strategy", Business Insider, June 03, 2015, © Business Insider Inc.
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Royal Ahold's Merger Talks With Delhaize Move Forward

June 3, 2015: 12:00 AM EST
Royal Ahold NV and Delhaize Group are moving forward with their merger negotiations, aimed at creating a grocery trade giant with $60 billion in annual sales. Seeking to complete the deal before July 2015, merger talks are focused on the structure of the deal and annual cost savings of €300 million to €700 million. Announced on May 12, the proposed merger deal has boosted the prices of the companies' shares, with Delhaize shares gaining 8.3 percent and Ahold seeing 3.3 percent increase.
Aaron Kirchfeld and Ruth David, "Ahold, Delhaize Said to Advance Talks With June Deal Sought", Bloomberg , June 03, 2015, © Bloomberg
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Amazon Introduces No-minimum-order Free Shipping Service

June 3, 2015: 12:00 AM EST
Amazon.com Inc. launched free delivery service for consumers who buy popular, small products from its online store. Available to all customers, including non-members of the online retailer's Amazon Prime program, the free shipping service comes without a minimum-order requirement. Amazon's move is in response to rival eBay Inc.'s marketing efforts aimed at cost-conscious consumers. Covering products that weigh 230 grams or less, and which usually cost less than $10, shipping will take four to eight business days.
Spencer Soper, "Amazon Debuts Free Shipping on Small Goods, No Minimum Order", Bloomberg Business, June 03, 2015, © Bloomberg L.P.
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UK's Supermarket Segment Posts Weak Sales Growth In Quarter Ending May 24, 2015

June 2, 2015: 12:00 AM EST
For the 12-week period ending May 24, 2015, supermarket sales in the UK grew by just 0.2 percent, compared with the same period in the previous year. Among the country's top 4 retailers, only Morrisons saw an increase in sales; however, its share of the market was unchanged at 10.9 percent. Despite sales falling 0.3 percent, Sainsbury's maintained its market share at 16.5 percent. Tesco's sales during the period fell 1.3 percent, with its market share falling by 0.4 percentage points to 28.6 percent. With its sales growing 8.8 percent, Lidl's share of the market rose to 3.9 percent from the previous year's 3.6 percent. Aldi grabbed 5.4 percent of the market, boosted by sales growth of 15.7 percent.
"UK: Morrisons return to growth and Lidl reach new share high", Kantar Worldpanel, June 02, 2015, © Kantar Worldpanel
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Wal-Mart Finds Africa A Harder Market Than Expected

June 2, 2015: 12:00 AM EST
Wal-Mart Stores Inc.'s expansion in Africa is not going as fast as the retailer planned when it bought a $2.4 billion stake in South Africa-based Massmart in 2010. Since then, Massmart has opened fewer than 10 new stores outside its home market, way behind rival Shoprite's current 300 outlets. Wal-Mart's slow progress in Africa mirrors the problems the company has encountered as it seeks to expand its operations in 27 countries and 6,300 stores outside the United States.
Tiisetso Motsoeneng, "Wal-Mart makes slow progress navigating Africa's challenges", Reuters, June 02, 2015, © Thomson Reuters
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China's Lower Tariff Rates Fail To Boost Local Consumer Spending

May 31, 2015: 12:00 AM EST
China's decision to cut tariff rates is not likely to result in significantly lower prices for imported consumer goods, according to Reuters. Effective on June 1, 2015, the government's move aims to stimulate domestic consumption and boost economic growth. Accounting for more than half of China's GDP growth, private consumption in the country is a laggard compared with levels in other countries, such as the United States. Retail prices of imported goods in China are about 40 percent higher than those in other countries, prompting Chinese tourists to shop for such items when they travel abroad.
"China import tax cuts no remedy for retail slowdown", Reuters, May 31, 2015, © Thomson Reuters
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Pet Superstore Chain Benefits From Positive Pet Care Trends In U.K.

May 31, 2015: 12:00 AM EST
The U.K. pet care market continues strong, reaching $7 billion in sales in 2014, driven by rising sales of premium dog and cat food. A top performer in the market is pet superstore Pets at Home, a 400-outlet chain with a base of loyal customers, many of whom belong to its 3.2 million-member VIP club. It offers one of the widest arrays of premium pet food brands in its stores, and has benefited from an aggressive online growth strategy. In the last quarter of 2014 its online product portfolio grew from 10,800 to 11,600 SKUs. Another source of financial strength is its strategy of integrating veterinary clinics and grooming facilities into its stores – currently a $96 million business.
Damian Shore, "Pets at Home an Increasingly Important Player in UK Pet Care", Blog, Euromonitor International, May 31, 2015, © Euromonitor International
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Major British Retailer To Enrich Bread Products With Vitamin D

May 30, 2015: 12:00 AM EST
U.K. retailer Marks and Spencer has begun adding vitamin D to its entire line of packaged bread and rolls. The products are prepared using a vitamin D-rich yeast that has been exposed to UV light. The decision came after the company surveyed 2,476 of its customers, finding that 78 percent wanted vitamin D enrichment of food. In addition, health experts have expressed fears about the rise in rickets cases among British children due to vitamin D deficiencies. Marks and Spencer is the only retailer so far to offer vitamin D-enriched bread.
"Vitamin D to be added to M&S bread", BBC, May 30, 2015, © BBC
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Walmart China Tests Comprehensive O2O E-Commerce Platform

May 30, 2015: 12:00 AM EST
Walmart hopes to boost sales performance in China by making it very easy for smartphone customers to shop, select, pay for and pick up purchases in stores using a comprehensive “Walmart to Go” O2O (“online to offline”) e-commerce platform. The pilot program is being tested in 23 stores in the city of Shenzhen, just north of Hong Kong in Guangdong Province. Using either an iOS or Android smartphone app, shoppers can access more than 10,000 products, including fresh/dairy/frozen, grocery, health, beauty and household chemical items. Walmart China CEO Sean Clarke said the O2O program will make Walmart “the most trusted omni-channel retailer in China.”
Yoko Wang, "Walmart launches Hypermarket O2O platform 'Walmart To Go' in China", Enterprise Innovation, May 30, 2015, © Questex Asia Ltd.
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Walgreens Boots Alliance CIO Leaves The Company

May 29, 2015: 12:00 AM EST
Walgreens Boots Alliance, Inc., said executive vice president and global chief information officer Tim Theriault will resign effective June 1, 2015. Citing personal reasons for leaving, Theriault will continue to function as a consultant to the company and as a senior adviser to executive vice chairman and acting CEO Stefano Pessina on various issues, including cybersecurity. SVP and international CIO Anthony Roberts will assume Theriault's post.
"Tim Theriault to Step Down as Global CIO at Walgreens Boots Alliance while Continuing as Consultant and Senior Advisor; Company Names Anthony Roberts as Senior Vice President, Global CIO", Walgreens Boots Alliance, May 29, 2015, © Walgreens Boots Alliance, Inc.
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Problem For Big U.K. Grocery Chains: How To Use Excess Store Space Profitably

May 29, 2015: 12:00 AM EST
Big British supermarkets, beset by competition from discount grocery stores, online shopping, and convenience stores, are trying different strategies to put their extra floor space to work and earn income. One idea is the “shop-within-a-shop”: concession agreements with non-food businesses, including retailers, financial services firms and professional services. Tesco tried a similar idea before, renting unused space to restaurants and coffee shops. Those efforts “failed to give consumers a compelling new reason” to shop at a supermarket. So Sainsbury and Asda have worked out deals with catalogue marketer Argos and photographic retailer Jessops. Tesco is looking at deals with dentists, hairdressers and opticians, whose work would complement store offerings.
Kadhim Shubber, "Supermarkets battle to mop up excess space", Financial Times, May 29, 2015, © The Financial Times Limited
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Price-Fixing Cartel To Be Fined By Belgian Agency In Probe Settlement

May 29, 2015: 12:00 AM EST
The Belgian Competition Authority has reached a settlement with 17 companies, including Carrefour SA, Colruyt SA, Delhaize Group SA, and other retailers and manufacturers, in a private antitrust investigation that began in 2007. The companies face stiff fines for price-fixing of perfume, personal care, and household products, according to unnamed sources. Bloomberg News reported that Colgate-Palmolive will probably avoid fines “for blowing the whistle on the cartel.” A similar investigation in France led to combined fines of more than $1 billion imposed on a number of companies, including L’Oreal SA.
Gaspard Sebag, "Carrefour, Delhaize Said to Face Fines in Belgian Cartel", Bloomberg , May 29, 2015, © Bloomberg
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Carrefour To Sell Off 100 Of Recently Purchased Dia Stores

May 29, 2015: 12:00 AM EST
One hundred of the 750 Dia France discount supermarket stores that Carrefour purchased in 2014 will be sold off because they are not located in desirable customer catchment areas or are simply not competitive or profitable. The selloff is part of Carrefour’s “transformation plan” to rebrand the Dia outlets as Carrefour Market or Carrefour Contact outlets. Seventy-four of the stores to be sold are located in France’s Rhine-Rhône region, the west-center region, or in the northwest.
"Carrefour To Sell 100 Of Its Dia Supermarkets", European Supermarket Magazine, May 29, 2015, © European Supermarket Magazine
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