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Major Retailers Take Diverging Steps in 1Q 2015

April 28, 2015: 12:00 AM EST
In the first quarter of 2015, Carrefour reported consolidated sales rose 6.2 percent, driven by strong performance in France and positive results in most markets. Wal-Mart announced various leadership changes, including the retirement of US EVP of grocery division Jack Sinclair and the departure of Chile CEO Gian Carlo Nucci. Also, Wal-Mart said it will remain focused on its e-commerce business. Tesco is in the middle of trying to turn its business around and is considering strategic options for its Dunnhumby unit and reorganizing its partnership with Kroger in the US. Metro Group partnered with German retailer Emmas Enkel and e-commerce site Shequ001.com in China.
"Leading retailers review: Carrefour, Walmart, Tesco, Metro", Retail Analysis, April 28, 2015, © The Institute of Grocery Distribution
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Lidl Plans Increased Investment, Expansion In Italy

April 28, 2015: 12:00 AM EST
Discount supermarket chain Lidl will hire 400 people to staff a planned 570 stores, 10 regional directorates and headquarters in Arcole (Verona), Italy. The hiring is part of a five-year expansion plan in the country that will add a total of 2,000 jobs and spend more than €1 billion. Headquartered in Baden-Württemberg, Germany, Lidl has been operating in Italy for 24 years.
"Lidl to Invest €1bn in Italy, Open 15 New Stores in 2015", European Supermarket Magazine, April 28, 2015, © European Supermarket Magazine
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dunnhumby Ltd, Kroger Create Joint Venture To Gather Kroger Customer Insights

April 27, 2015: 12:00 AM EST
dunnhumbyUSA announced that joint venture partners dunnhumby Ltd and Kroger will replace their joint venture with a new long-term license and service agreement and the acquisition of certain assets from dunnhumbyUSA by Kroger. To operate the assets, the companies created a company called 84.51°. Under the new arrangement, dunnhumby will be able to take advantage of the North American market by working with new retailers, consumer brands and media partners. British firm dunnhumby analyzes global shopper data to create personalized customer experiences in digital, mobile, and retail environments. 84.51° will have a license to use dunnhumby Ltd's analytical tools to find customer insights in Kroger's data.
"dunnhumby Ltd. and Kroger Announce New Relationship", News release, Kroger, April 27, 2015, © The Kroger Co.
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Tesco Slows Down India Expansion Moves

April 27, 2015: 12:00 AM EST
UK retailer Tesco is expected to slow down its expansion moves in India, following the company's record-setting annual loss of $9 billion. Although the company exited several markets, including the United States and Japan, Tesco is unlikely to leave India. In 2014, Tesco announced a $110 million investment in the country. It was the first foreign-owned company to enter India's multi-brand retail sector after the government had allowed non-Indian retailers to invest 51 percent in the market. French retailer Carrefour recently left India, ending its wholesale business after its supermarket business plans failed.
Nivedita Mookerji , "Tesco to go slow on India operations", Business Standard, April 27, 2015, © Business Standard Ltd.
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Unilever Launches Program Aimed At Helping Retailers Improve Their Business

April 27, 2015: 12:00 AM EST
Unilever's Partners for Growth, a support and consultancy program for independent retailers, introduced an action plan aimed at helping convenience store owners improve their business. Developed by the Retailer Advisory Panel, the Retail Fitness action plan focuses on various areas, including maximizing personnel performance, store presentation, and community involvement. Topics covered by the plan include the importance of having a plan, tips on gauging the competition, and offering value for money.
"Retail Fitness – Tips for independents from Unilever’s Partners for Growth", Talking Retail, April 27, 2015, © TalkingRetail.com
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Advertising Is Following Technology, Becoming More Personal And Instantaneous

April 26, 2015: 12:00 AM EST
In an essay on the future of technology and advertising, Brian Wong, CEO of a mobile advertising start-up, envisions the end of mass marketing. Replacing it will be advertising that is more “human,” more personalalized, in the sense that every advanced technology device will incorporate advertising that targets a specific need. For example, a gasoline company will be able to tell when a car’s gas tank is low and find the nearest station. TV and radio commercials that reach millions of viewers don’t really engage them, Wong says. Thanks to advancements in mobile technology, future advertisers will be able to pinpoint the exact moments and needs that users have and supply solutions in real time.
Brian Wong, "The Future of Advertising: Farewell, Mass Marketing", The Wall Street Journal, April 26, 2015, © Dow Jones & Company, Inc
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Tesco Sets Pre-Tax Loss Record In UK; Believes Future To Be Brighter

April 25, 2015: 12:00 AM EST
UK retailer Tesco announced it made the largest pre-tax loss, ₤6.4 billion or $9.6 billion, in the country's retail history. About ₤4.7 billion of this amount was caused by a drop in the property value of Tesco's UK stores. Profits plummeted 68 percent to ₤961 million, while overall sales dropped 1.8 percent, compared with the previous year. Opting to announce all the bad revenue news at one time, Tesco hopes it has reached rock bottom and is now on its way to corporate turnaround, CEO Dave Lewis said. Some developments seem to support Lewis' optimism: Tesco Bank is performing well and profits in Tesco's Asian operations declined by only 15 percent, compared with 79 percent in the UK.
"Tesco: Very little helps", The Economist, April 25, 2015, © The Economist Newspaper Limited
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Tesco Invests Rs 850 Crore In India's Retail Market

April 24, 2015: 12:00 AM EST
Tesco invested Rs 850 crore in India's multi-brand retail sector. In March 2014, Tesco formed a joint venture with Tata's Trent unit, acquiring a 50-percent stake in Trent Hypermarket Ltd. THL operates the Star Bazaar retail business in the country. Tesco was the first foreign-owned retailer to seek permission to operate a multi-brand retail business in India following the government's decision to allow 51-percent FDI in the segment in September 2012.
"Tesco invested Rs 850 cr in multi-brand retail: Govt", Business Standard, April 24, 2015, © Business Standard Ltd.
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Walmart International CEO Visits India; Renews Company's Commitment To Local Expansion

April 24, 2015: 12:00 AM EST
Walmart International president and CEO David Cheesewright renewed his company's commitment to expand its cash-and-carry and business-to-business e-commerce businesses in India in the next five years. Speaking during his first visit to the country in April 2015, the executive met the chief ministers of the Andhra Pradesh and Telangana states, updating them of Walmart's expansion and local-sourcing plans in India. Cheesewright also visited the Best Price Modern Wholesale stores in Hyderabad and Agra.
"Walmart reiterates commitment to India", The Hindu Business Line, April 24, 2015, © The Hindu Business Line
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Carrefour Starts Testing Its E-commerce Business In China

April 23, 2015: 12:00 AM EST
French retailer Carrefour began testing its e-commerce site in China. During the trial phase, shoppers can order products online and receive the delivery from a store nearby. Carrefour said it will launch the online store officially in June 2015. Leveraging its retail network of almost 30 stores in Shanghai, Carrefour is the latest foreign-owned retailer to launch its e-commerce business in the country.
Shirley Zhu, "Carrefour Trials E-Commerce In China", Retail Analysis, April 23, 2015, © IGD Services Limited
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Tesco Posts Strong Profit For FY 2015; Reveals One-Off Losses Due To Decline In Property Value Of UK Stores

April 22, 2015: 12:00 AM EST
Tesco reported £1.4 billion in group trading profit for the year ending February 2015. Statutory pre-tax loss reached £6.4 billion, the retailer's worst ever and the biggest loss suffered by a UK retailer. According to the company, about £4.7 billion of the losses were due to the decline in property value of its stores in the UK, where it plans to shut down 43 of them. Factors affecting the company's revenue performance included “tough trading conditions” in overseas markets and “disappointing performance” in Europe.
"Tesco Preliminary Results 2014/15", Tesco , April 22, 2015, © Tesco
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Carrefour Launches 5 Minutos Small-Format Stores In Argentina

April 22, 2015: 12:00 AM EST
French retailer Carrefour launched its 5 Minutos small-format supermarket brand in Argentina. Signaling the company's push to expand its presence in the convenience-store segment in the country, the new format is similar to the Carrefour Express stores. All 5 Minutos stores will be operated by franchisees, the company said.
"Carrefour Launches New Store Banner in Argentina", European Supermarket Magazine, April 22, 2015, © European Supermarket Magazine
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Sam's Club Expands Discounted Service Offerings For Members

April 22, 2015: 12:00 AM EST
Wholesaler Sam's Club said it has expanded its service offerings that could help members save as much as $2,300 each year on service solutions for personal and business requirements. Services solutions covered by the announcement include Identity Theft Protection by LifeLock for personal data and identity protection, Accounting and Tax Preparation with 1-800Accountant, and Sam's Club Business Lending Center. Also offered is Enhanced Payment Processing solutions by First Data.
"More for the Member: Sam’s Club Adds Five New Services to Redefine Value of Membership", Sam’s Club, April 22, 2015, © Sam's West, Inc.
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Costco “Rebrands” Itself In The Fresh Bread Category

April 22, 2015: 12:00 AM EST
In a major attempt to differentiate itself from the competition, Costco announced it is abandoning par-baked bread – i.e., partially baked loaves shipped to stores for finishing – in favor of bread made from scratch in the stores. The program has started with round loaves of country French, cranberry walnut, and honey multigrain. The cranberry walnut breads are being replaced with raisin walnut; short, wide loaves known as batards will be added to the menu. The in-store bakers, who will bake all day, are being trained in mixing, bulk fermentation, shaping and baking.
Liz Webber, "Costco introduces scratch-made bread", Supermarket News, April 22, 2015, © Penton Media
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Walmex Reports Strong Sales Jump In 1Q 2015

April 21, 2015: 12:00 AM EST
Wal-Mart de Mexico said profits rose 9 percent to 5.175 billion pesos, or $339 million, in the first quarter of 2015, compared with 4.75 billion pesos in the previous year. Due to higher costs, however, earnings were below analysts' forecast of 5.558 billion pesos, according to a Reuters survey of six analysts. Also, revenue expanded 9 percent to 111.7 billion pesos, with same-store sales rising 4.9 percent. Walmex opened11 new stores during the quarter.
Elinor Comlay, "UPDATE 1-Mexico's Walmex reports higher 1st-quarter profit", Reuters, April 21, 2015, © Thomson Reuters
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Wal-Mart Looks For E-commerce Lessons From Asda's Online Business

April 21, 2015: 12:00 AM EST
Wal-Mart Stores Inc. is evaluating the e-commerce operations and strategies of its UK unit Asda, with the goal of determining which components to adopt for its United States business. At present, Asda's online grocery delivery service covers 97 percent of the UK. At the same time, the UK retailer is expanding its click-and-collect platform currently offered at all of its 592 stores across the country. In February 2015, Asda acquired 15 gas stations as part of its plan to open 1,000 pickup locations by 2018.
Saabira Chaudhuri, "Wal-Mart Looks to U.K. Unit for Lessons on Online Groceries", Wall Street Journal, April 21, 2015, © Dow Jones & Company, Inc.
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Sephora Opens Innovation Lab Facility In San Francisco

April 20, 2015: 12:00 AM EST
Beauty retailer Sephora opened its Innovation Lab research and development center in San Francisco, California. Aimed at promoting a “culture of innovation development,” the facility also highlights Sephora's objective of creating a new generation of digital leaders. Innovation Lab will function as a venue for creating, testing, and evaluating new ideas, the company said.
Antoinette Alexander, "Sephora strives to innovate in beauty", Drug Store News, April 20, 2015, © Drug Store News
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Wal-Mart Deletes A Management Layer; Aims To Empower Store Managers

April 18, 2015: 12:00 AM EST
Wal-Mart Stores Inc. is cutting the zone manager position from its payrolls in the United States. Affecting around 14,000 employees, the move is aimed at reducing bureaucracy and empowering people running the retailer's 4,500 stores across the country. Zone managers will be reassigned as assistant managers or department managers, with their pay unaffected by the revamp. Wal-Mart said it will hire up to 8,000 new department managers.
"Wal-Mart to Cut Management Role to Simplify Store Operations", Bloomberg, April 18, 2015, © Bloomberg
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Order-And-Pay Tablets Transform Olive Garden Dining

April 16, 2015: 12:00 AM EST
The Olive Garden restaurant chain plans to expand the use of order-and-pay tablets after testing has found they speed the dining process and increase wait staff tips. The roll-out will begin next month with plans to eventually equip all of its 800 U.S. restaurants with the devices by the end of the year. A company spokeswoman said Olive Garden diners who use the tablets control the speed of their meals by ordering drinks, appetizers and desserts at their own pace, then easily pay the check. A marketing consultant said “consumers are ready for this change.”
Alex Samuely, "Olive Garden garnishes dining experiences via pay-at-the-table tablets", Mobile Commerce Daily, April 16, 2015, © Napean LLC.
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Amazon Fresh Takes Early Pricing Lead In Online Grocery Shopping/Delivery

April 16, 2015: 12:00 AM EST
A pricing study limited to New York City has found that Amazon.com is cheaper than its online grocery delivery competitors Instacart, Peapod and Fresh Direct. For the study, Nomura Securities ordered a cart of 30 items from each of the companies. Amazon’s bill for shopping and delivery was $122.03 ($5 tip included). The Instacart bill (ordered through grocery store Fairway) was $142.86. Fresh Direct came in at a whopping $158.74. The $10.9 billion online grocery market is growing rapidly – 9.6 percent annually through 2019.
Spencer Soper, "Amazon Offers Cheapest Grocery Delivery in NYC, Study Finds", Bloomberg Business, April 16, 2015, © Bloomberg L.P.
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Morrisons Plans To Increase Staff In Its Supermarkets

April 16, 2015: 12:00 AM EST
The fourth largest supermarket chain in the U.K. plans to trim its head office staff while hiring more service people for its stores. Morrisons is recruiting 5,000 shop floor staff to improve service, increase product availability, and open more checkout counters. Many of the new jobs will be part-time. In the meantime it plans to reduce head office jobs by 720. Headquarters staff in Bradford have increased by 50 percent since 2008, a trend that has left many employees disgruntled. The lack of personnel in stores has been a major complaint among the rank-and-file at Morrisons.
Ronan Hegarty, "Morrisons to cut 720 head office jobs as it boosts shop floor numbers", The Grocer, April 16, 2015, © William Reed Business Media Ltd
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Tesco Invests Millions In Food Price Cuts In Malaysia

April 16, 2015: 12:00 AM EST
Tesco Stores (Malaysia) says it is investing $13.75 million in its “Lebih Jimal” to reduce prices on 1,000 products in its 54 stores and online through the end of the year. Included in the price cuts of 20 to 44 percent are essential fresh and grocery products. For the campaign, which was launched by Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Hasan Malek, Tesco is working closely with all of its suppliers.
"Tesco Invests RM50 Million To Reduce Prices On 1,000 Items", Bernama, April 16, 2015, © Bernama
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Food Safety “Traffic Light” Placard System Approved For Restaurants In Calif. County

April 16, 2015: 12:00 AM EST
A new program to inform restaurant patrons in San Mateo County (Calif.) of the results of a facility’s most recent food safety inspection has won approval by the county board. The program, which will begin a training period soon and will take effect next year, requires restaurants to post a placard that uses familiar traffic signal colors to show whether the facility passed its last safety inspection (green), received a provisional pass (yellow), or failed (red) and will be closed until problems are fixed. The placard system affects 3,000 permanent food facilities, including restaurants, mobile food trucks, bakeries, schools, licensed health care facilities, and some convenience stores.
"California County Approves Restaurant Food Safety Placard Program", Food Safety News, April 16, 2015, © Food Safety News
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Cook-At-Home Meal Kits For The Consumer Who Likes Cooking, Not Shopping

April 15, 2015: 12:00 AM EST
Though cook-at-home meal kits have advantages and disadvantages, they are “here to stay,” says CPG Matters editor John Karolefski. Related to the online grocery shopping/delivery trend, meal kits are also ordered online, where Web sites show enticing photos of the food. The meal kit service shops for the groceries, then delivers pre-measured ingredients, recipes, and cooking instructions. The mainly dinner meals average $10 to $12 per plate, though some specialty and organic meals can cost as much as $30. Advantages: large portions; fresh food, locally sourced, even organic; precise ingredients (no waste). Disadvantages: lots of prep work; badly proof-read recipes; usually no nutrition info.
John Karolefski, "Can Cook-at-Home Meal Kits Prosper?", CPG Matters, April 15, 2015, © CPGmatters
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Sainsbury's Plans To Transform Supermarkets Into Non-Food Stores

April 15, 2015: 12:00 AM EST
Sainsbury's plans to convert 1.5 million sq ft, or 6 percent, of its total retail space across the UK into non-food sales space. According to the supermarket chain, customers are switching their spending to convenience stores, discounters, and online stores. It plans to use half of the identified space to sell its private-label non-food products, such as kitchenware and houseware. Sainsbury's said it plans to sublet the remaining half of the space.
Graham Ruddick, "Sainsbury's to convert supermarkets into non-food space", The Telegraph, April 15, 2015, © Telegraph Media Group Limited
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CPG Companies Begin Testing Amazon.com “Dash Button”

April 15, 2015: 12:00 AM EST
Big CPG companies are testing Amazon.com’s innovative “Dash Button,” a small plastic device installed in rooms around the home that allows consumers to re-order common household items, like food, beverages, detergents, etc. Each button is unique to a product and is installed in appropriate areas (e.g., kitchen, laundry). P&G, Clorox, Coca-Cola and Kraft are testing their versions of the Dash Button with Amazon Prime members who receive the buttons on an invitation-only basis during testing. A wide-scale rollout is expected; Amazon has already unveiled a Dash Replenishment Service (DRS) and has asked manufacturers to incorporate the technology into product designs.
Alarice Rajagopal, "Amazon Creates Potential Edge for Major CPG Brands", Consumer Goods Technology, April 15, 2015, © Edgell Communications
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Millennials Fuel Burgeoning Spending At Restaurants

April 14, 2015: 12:00 AM EST
America’s eating habits are evolving fairly rapidly, and that’s not good news for grocery stores. But it is good news for restaurants, where consumer spending has for the first time ever outstripped spending at the supermarket, according to Commerce Department trend data going back 23 years. Part of the reason is a “generational shift:” restaurants meet the needs of growing numbers of millennials who like to dine out. Not so for older Americans, who are much more likely to shop at the grocery store and cook at home. A recent Gallup poll found that the share of 51- to 69-year-olds spending more on groceries (compared to a year ago) surpassed those spending less by 45 percent. Nevertheless, “grocery stores are finding it harder to make headway with shoppers.”
Michelle Jamrisko, "Americans' Spending on Dining Out Just Overtook Grocery Sales for the First Time Ever", Bloomberg Business, April 14, 2015, © Bloomberg LP
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Aldi Will Change Grocery Retail Scene In U.S., Analysts Say

April 14, 2015: 12:00 AM EST
Discount retailer Aldi is looming to drastically change the grocery retailing market in the United States. With a retail strategy that focuses on selling its private-label equivalents of established American food products, Aldi combines a control label National Brand Equivalent portfolio with the removal of typical supermarket services from its offerings. For example, the retailer does not have counter service departments and shelving, and requires deposit from shoppers using its shopping carts.
"ALDI Is A Growing Menace To America's Grocery Retailers", Forbes, April 14, 2015, © Forbes.com LLC™
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Lancome, Sephora Join FaceCake's Mobile Search App

April 14, 2015: 12:00 AM EST
Cosmetics brands Lancome, Sephora Collection, and Make Up For Ever are among those featured in FaceCake Marketing Technologies' cosmetic color search mobile application ShadeScout. Highlighting search-related apps as a tool for reaching more consumers, the ShadeScout application allows users to search for their favorite color beauty products using augmented reality, Virtual Try-On features, and built-in purchase solutions. Also, users can upload their photos to virtually try on different shades of their favorite cosmetics products.
Alex Samuely, "Lancome, Sephora get search treatment in FaceCake’s augmented reality app", Mobile Marketer, April 14, 2015, © Napean LLC
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JUMIA Expands Online Retail Operations To Include Senegal

April 13, 2015: 12:00 AM EST
Africa's largest online retailer JUMIA continued its expansion in the region by launching its business in Senegal. Bringing the number of countries in which the online retailer is active to 12, Senegal is Africa's 22nd largest economy, with a nominal GDP of $16 billion, and posting economic growth rate of 5 percent in 2014. With a growing number of Internet and smartphone users, Senegal offers strong growth opportunities.
Afia Owusu-Nyantakyi, "Africa's leading e-commerce site JUMIA has now launched in Senegal", Africa Business Communities, April 13, 2015, © Africa Business Communities BV
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Asda Starts Search For New COO

April 12, 2015: 12:00 AM EST
Discount retailer Asda began its search for a chief operating officer as part of its efforts to strengthen its board of directors and find a potential successor for CEO Andy Clarke. The search followed retail director Mark Ibbotson's transfer to US parent company Wal-Mart to become senior VP for innovation. Asda, which has not had a COO since Judith McKenna's move to Wal-Mart two years ago, is looking for an executive with operational experience.
Andrea Felsted, "Asda kicks off hunt for new chief operating officer", Financial Times, April 12, 2015, © The Financial Times Limited
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California Shop Offers Freshly-Prepared, Healthful Meals

April 11, 2015: 12:00 AM EST
A new entry in the fresh-prepared foods market in California is a shop that represents a burgeoning trend: fresh, non-processed, healthful ready-to-go meals. Technomic predicts that growth in the $26 billion fresh-prepared foods market is outpacing that of grocery food items and food service. Fit Eats is successfully catering to a slice of that market: the growing demand for healthy pick-up-and-go foods. Regular-sized meals, cooked in natural oils like olive or avocado, cost between $7 and $10. Each contains four ounces of lean meat, a half cup of starch, and one serving of vegetables, totaling 400 calories and one gram of salt. Owner Don Arnold says, "It's healthy meal prep, essentially. We're saving you time, saving you money, saving you energy."
Sammy Caiola, "Fit-food fast: New outlets meet consumer demand for healthy food on the go", The Sacramento Bee, April 11, 2015, © The Sacramento Bee
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Entrepreneur Bets On Growing American Interest In Healthy Fast-Casual Food

April 10, 2015: 12:00 AM EST
Fast-casual restaurants are the healthy growth sector of the foodservice industry, but one entrepreneur is planning to exploit a major gap in the market. Celebrity chef Franklin Becker has teamed with Aurify Brands (Five Guys, Dunkin’ Donuts and Melt Shop) to launch Little Beet in New York City, a fast-casual that focuses on better ingredients and “overall better human health.” The average meal at fast-casual giant Chipotle has a thousand calories and is loaded with salt. A Little Beet chicken plate with a side of sweet potatoes comes in at 470 calories. And, says an Aurify exec about the rest of the menu, “you can actually taste the broccoli, cauliflower, string beans.”
Kimberley Bainbridge , "Celeb chef's new recipe for success: Healthy fast casual", CNBC.com, April 10, 2015, © CNBC LLC
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Carrefour Says Sales In France And Overseas Markets Showed Strong Growth In 1Q 2015

April 10, 2015: 12:00 AM EST
French retailer Carrefour reported sales grew 6.2 percent to €21.0 billion in the first quarter of 2015. In France, sales, excluding petrol, grew 7.9 percent, with organic growth of 2.6 percent. International sales grew 8.4 percent, with organic sales rising 3.6 percent. Sales growth was reported in Europe, while excellent performance continued in Latin America markets. Also, the company said currencies had a positive impact of 2.1 percent and the calendar effect was slightly positive at 0.3 percent. Prices of petrol, however, had a negative impact of -2.1 percent.
"Carrefour 2015 1st Quarter Sales", Carrefour, April 10, 2015, © Carrefour SA
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Walgreens Boots Alliance 2Q FY2015 Net Earnings Grow 33.2 Percent

April 9, 2015: 12:00 AM EST
Walgreens Boots Alliance said adjusted net earnings per diluted share rose 21.6 percent to $1.18, while GAAP net earnings per diluted share grew 160.8 percent to $1.93 in the second quarter of fiscal year 2015. Adjusted net earnings rose 33.2 percent to $1.2 billion, while GAAP net earnings grew 185.2 percent to $2.0 billion. Sales grew 35.5 percent to $26.6 billion during the period, with comparable store sales in the company's Retail Pharmacy USA division expanded 6.9 percent.
"Walgreens Boots Alliance Reports Fiscal 2015 Second Quarter Results", Walgreens Boots Alliance , April 09, 2015, © Walgreens Boots Alliance, Inc.
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New England’s Brown Bread In A Can: Fading Tradition Is Preserved In Chicago

April 8, 2015: 12:00 AM EST
A restaurant in the Chicago area – of all places, says food writer Christopher Borrelli – has New England-style brown bread on its menu. Made with molasses and baked in a can, brown bread was once a staple in New England, but it’s a fading tradition. (Though it is still made by the company that makes B&M Baked Beans.) Nevertheless, the tradition is being well-looked-after at Floriole Café & Bakery, 900 miles west of Portland, Me. The bread is made from an old recipe that features dark blackstrap molasses, buttermilk, and rye flour, baked in a can, sliced, then served with butter and jam. The 28-year-old baker says it’s his “responsibility” to preserve at least some traditions. "I have become very interested in reviving old breads.”
Christopher Borrelli, "Brown bread, a dying New England staple, found far from home", Chicago Tribune, April 08, 2015, © Chicago Tribune
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Specialty Foods Are Becoming More Mainstream Grocery Items

April 7, 2015: 12:00 AM EST
As grocery shoppers increasingly look for foods considered more natural, less processed or locally produced, retail sales of specialty food items have been rising steadily, reaching $51 billion last year. Stores have begun stocking shelves with new, smaller brands of high quality, limited supply or “exotic” foods. The category accounted for 13.7 percent of retail food sales in 2013, up from 12.7 percent in 2012. That makes specialty foods – imported cheese, high-quality coffee beans, etc. -- less of a niche market, because the trickle-down effect eventually pushes them into big retail stores, like Walmart.
Leslie Josephs, "Specialty Food Products Taking Up More Space in Grocery Carts", The Wall Street Journal, April 07, 2015, © Dow Jones & Company, Inc.
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The Body Shop Hires Search Agency To Manage Search Marketing Efforts

April 7, 2015: 12:00 AM EST
Beauty retailer The Body Shop appointed search agency iCrossing to manage the reorganization of its search marketing strategy. Focused first on the restructuring the retailer's paid search operations, the reorganization will put emphasis on “smaller but more targeted campaigns.” In addition to sharpening the focus of its search campaigns, The Body Shop also wants to offer content that are more relevant for customers. Also, the company expects improved targeting will improve its Google quality score, lower costs, and improve return on investment.
Seb Joseph , "The Body Shop preps ‘audience centric’ search strategy to win new customers", The Drum, April 07, 2015, © Carnyx Group Ltd
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Big Box Online Retailers Take A Back Seat To Amazon Prime

April 7, 2015: 12:00 AM EST
Market researchers say online shoppers who subscribe to Amazon Prime are much less likely to shop at other online retailers like Target.com or Walmart.com. One researcher found that less than one percent of Prime members will cross-shop during the same online session. Though Amazon does not reveal information about its $99/year Prime service, Consumer Intelligence Research Partners estimates membership at around 40 million, a four-fold increase in two years. One study finds that 63 percent of Prime members make a purchase on the site during a visit. By contrast, only two percent of Target.com and five percent of Walmart.com shoppers purchase something during their online session.
Clare O'Connor , "Walmart And Target Being Crowded Out Online By Amazon Prime", Forbes.com , April 07, 2015, © Forbes.com LLC
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Wal-Mart De Mexico Posts Strong 1st Quarter Sales Growth

April 7, 2015: 12:00 AM EST
First quarter sales at retailer Wal-Mart de Mexico (Walmex) jumped 9.3 percent over last year to $7.4 billion. It was the biggest hike in sales since the third quarter of 2012, when the company posted an increase of 11 percent. It is welcome news for the company, whose territory includes Mexico and Central America, because it has been experiencing declining store visits and weak consumption in Mexico. Sales were up seven percent in Mexico and 23 percent in Central America.
Anthony Harrup, "Wal-Mart’s Mexico Unit Logs Strongest Sales Growth in Over Two Years", The Wall Street Journal, April 07, 2015, © Dow Jones & Company, Inc.
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Quick-Bake Custom Pizza Restaurants Find A Booming Niche In A Big Market

April 4, 2015: 12:00 AM EST
Quick-fired pizza chains are spreading like wildfire from Southern California eastward. The restaurants – with names like Pie Five and Blaze Fast Fire'd Pizza – promise specialty pizzas baked in five minutes in super-hot ovens. Customers can create their own pizza by first choosing a dough (whole wheat, gluten-free, etc.), then select from a large number of toppings like sausage, basil, tomatoes and roasted red peppers. Some offer salads and dessert, some serve beer and wine. Technomic says sales among the top 15 quick-fire pizza chains grew 193 percent to $337 million in 2014. It predicts that the five-year-old category will lead the restaurant industry in percentage growth and unit expansion over the next three years.
Peter Frost, "Invasion of the quick-fired pizza", Crain’s Chicago Business, April 04, 2015, © Crain Communication, Inc.
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Amazon Introduces Dash Urgent Order And Delivery Service

April 1, 2015: 12:00 AM EST
Online retailer Amazon began testing the Amazon Dash Button, a service that allows customers to immediately order household products, such as laundry detergent and baby food, without the need for a computer or smartphone. Equipped with an adhesive strip allowing it to be mounted anywhere, the Dash Button uses home WiFi networks to get in touch with Amazon and order the required product. Forrester Research analyst Sucharita Mulpuru expects the Dash, which is available by invitation only to select Amazon Prime members, to fail.
Spencer Soper, "Amazon.com Unveils Dash Button for When You Need Detergent", Bloomberg.com, April 01, 2015, © Bloomberg LP
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Membership Model Of Grocery Delivery Could Be A Game-Changer For Industry

April 1, 2015: 12:00 AM EST
A report from BI Intelligence says that the trick to succeeding as an online grocery delivery service is to make it membership-based. The membership strategy, based on Costco’s model, is being applied successfully by several companies, not the least of which is Amazon, and could prove a disruptive force in the $600 billion retail grocery industry. The main benefits of the membership model include (for the business): repeat customers and lower per-order delivery fees; and (for the consumer):  guaranteed fresh food from the local supermarket and less time spent in-store. The report looks at the grocery delivery services of Amazon, Instacart, Shipt and Thrive Market.
Cooper Smith, "Membership-based delivery services are beginning to disrupt the $600 billion-a-year grocery industry", Business Insider, April 01, 2015, © Business Insider Inc.
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Lidl Plans To Open More Than 60 Stores In Ireland And Northern Ireland

April 1, 2015: 12:00 AM EST
Discount retailer Lidl plans to open more than 60 new stores in Ireland and Northern Ireland in 2015. Considered to be the largest expansion plans of any of the region's largest supermarket chains, the move includes the appointment of CBRE's Dublin and Belfast offices to search for possible sites for the planned retail stores. Criteria for site selection include at least 2 acres in size although 1 acre will be considered for high-density urban areas. Also, the company said it prefers freehold properties to suit stores ranging in size from 1,800 sq m to 2,400 sq m.
Jack Fagan, "Lidl ups competition as it plans to open 60 additional stores", Irish Times, April 01, 2015, © THE IRISH TIMES
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Wal-Mart Pushes Suppliers To Reduce Their Prices

March 31, 2015: 12:00 AM EST
Wal-Mart Stores Inc. is demanding its suppliers to cut their prices as part of the retailer's efforts to regain the leadership in the low-price retail segment and revive sales in the United States. According to the retailer, it has been urging suppliers to focus on lowering their prices instead of investing in joint marketing. Long known for its tendency to pressure suppliers into cutting costs, Wal-Mart's current leadership has adopted the idea “with fresh vigor.” Losing its price advantage against its rivals is one of the factors driving Wal-Mart's loss of market share, according to consulting firm Kantar Retail.
Paul Ziobro et al, "Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices", The Wall Street Journal, March 31, 2015, © Dow Jones & Company, Inc.
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Carrefour Announces Plans To Expand Store Network In Africa

March 31, 2015: 12:00 AM EST
French supermarket company Carrefour said it plans to launch a network of new stores in Africa starting in 2016. Part of UAE-based retailer developer Majid Al Futtaim's plan to expand the retailer's operations across the continent, the proposed strategy will start with the launch of the company's first franchised Carrefour store in Kenya. Majid Al Futtaim purchased Carrefour Group in 2013.
Mzwandile Jacks, "Carrefour plans to develop a network supermarkets across Africa this year", Ventures Africa, March 31, 2015, © Ventures Africa
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Carrefour Says To Give Customers At-Home Scanners For Online Ordering

March 30, 2015: 12:00 AM EST
Carrefour Belgium plans to supply its customers with a device for scanning items in their homes and ordering them online. Designed to also detect products offered by rival retailers, the scanner will offer product suggestions from Carrefour. Featuring a database of 1.3 million barcodes, the scanning system will also feature voice-enabled controls.
"Carrefour Belgium to provide its customers with a facility for scanning items in their homes so they can then order them online", EPR Retail News, March 30, 2015, © EPR Retail News
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Tesco Continues Corporate Restructuring Moves

March 30, 2015: 12:00 AM EST
Retailer Tesco continues implementing the reorganization of its UK and international operations as of March 2015. As part of its restructuring, the company has created a new management team for its European operations and merged its London division into its south team. Tesco announced its plans to merge the management teams of its Poland, Czech Republic, Hungary, and Slovakia units. Czech unit CEO David Morris was appointed as leader of the European management team. Also, Tesco appointed real estate firm Savills to start selling six of the largest of the 49 plots of land the retailer said it does not need anymore.
Nick Miles, "Tesco: reshaping for future growth", Retail Analysis, March 30, 2015, © The Institute of Grocery Distribution
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John Masters Organics Announces Deal To Sell Haircare Products Through ULTA Beauty Stores

March 30, 2015: 12:00 AM EST
High-end organic cosmetics brand John Masters Organics agreed to sell its line of haircare products through beauty retailer ULTA Beauty's stores. As part of the partnership deal, John Masters Organics' haircare products, including the Argan Oil collection, will be available in all stores and online. John Masters Organics products are aimed at consumers who want products that “promote healthy and natural beauty.”
"John Masters Organics Announces New Partnership with ULTA Beauty", PRNewswire, March 30, 2015, © PR Newswire Association LLC.
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Tesco Ireland Chief Clarke Announces Plan To Retire

March 26, 2015: 12:00 AM EST
Tesco Ireland chief executive Philip J. Clarke announced his plan to retire less than two years after his appointment to the position. A 40-year veteran of the supermarket company, Clarke also served as chief executive of Tesco's units in Slovakia, the Czech Republic, and Japan. He was appointed as Tesco Ireland chief executive by former Tesco CEO Phil Clarke in July 2013.
Luke Tugby, "Tesco's Ireland boss steps down after two years in the role", Retail Week, March 26, 2015, © EMAP Publishing Limited
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