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Pizza Hut Makes Risky Bet Its Expanded Menu Will Boost Sales

November 14, 2014: 12:00 AM EST
Pizza Hut’s decision to double its menu offerings to jump start slumping sales has attracted a lot of attention, but it is a risky strategy for the company and its franchisees. The main worry is that offering so many new pizzas and topping combinations will increase ingredient and preparation time costs, as well as franchisee training costs. The new pizzas are time-consuming to make and the ingredients pricier. If the new, more expensive, offerings catch on among the target audience of millennials, then it will all be worth it. Pizza Hut is confident, however, and a spokesperson said franchisees have been “extremely supportive of the changes”.
Kate Taylor, "Inside Pizza Hut's radical move to double its menu", Fortune, November 14, 2014, © Time Inc.
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Ahold Sales Up Slightly In 3rd Quarter

November 13, 2014: 12:00 AM EST
Dutch retailer Ahold reported third quarter sales of $9.4 billion, up 1.9 percent (1.5 percent at constant exchange rates). Third quarter profit was $222 million, an increase of 7.9 percent (8.5 percent at constant exchange rates). The company said sales improved in the Netherlands and in the U.S., where its Stop & Shop and Giant grocery stores contribute 60 percent of total company revenue, during the quarter. CEO Dick Boer said "ongoing investments in our customer proposition and further development of our formats and assortment will continue to result in improving sales trends”.
"Ahold Interim Report", Ahold, November 13, 2014, © Ahold
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Despite Drop In LFL Sales, Asda Says It Is Gaining Market Share From Competitors

November 13, 2014: 12:00 AM EST
Asda, the second largest supermarket chain in the U.K., posted a 1.6 percent decline in like-for-like (LFL) sales during the third quarter that ended September 30. The company says that despite the fact that performance was a step back from 0.6 percent LFL growth in the second quarter, it is “closing the gap” with competitors like Walmart and continues to grow market share in a distressed market for all retailers. Asda also reported a 19.6 percent growth in online shopping, the tenth consecutive month of above market growth.
"Asda winning battle against big three - and setting sights on the discounters", Asda, November 13, 2014, © Asda
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Wal-Mart Profit Slides A Little In 3rd Q, Though Sales Improve

November 13, 2014: 12:00 AM EST
Wal-Mart Stores, Inc. reported third quarter profit of $3.7 billion, a decrease of 0.7 percent, on sales of $118.1 billion, up 2.8 percent over last year. Diluted earnings per share from continuing operations were $1.15, or 0.9 percent above last year's $1.14.  The quarter’s performance was affected negatively by about $396 million in currency exchange rate fluctuations. The company said its 3rd quarter earnings per share were “solid”, thanks to including the strong performance from Neighborhood Markets, a 21 percent increase in e-commerce sales globally and healthy profit from Sam's Club and in international business. The company said it needs to strengthen sales growth and “improve the customer experience, both in stores and online”.
"Walmart reports FY 15 Q3 EPS of $1.15; Walmart U.S. delivers positive comp sales", Walmart, November 13, 2014, © Wal-Mart Stores, Inc.
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More Men Shop For Groceries But Not Happy About It, NPD Says

November 12, 2014: 12:00 AM EST
In the United States, men account for 41 percent of primary shoppers, according to NPD's “The New Grocery Shopper” report. Data from the market research firm revealed men who are 18 to 34 years old are most likely to see grocery shopping as a chore. Male shoppers who say that shopping is a chore are “conscientious shoppers” and they see shopping as a serious responsibility, and prepare a shopping list most of the time. Complaining male shoppers spend around 56 minutes doing their shopping, four minutes shorter than female shoppes and male shoppers who like spending time at the grocery store, NPD said.
"More Men Are Grocery Shopping But They Do So Grudgingly, Reports NPD", NPD Group, November 12, 2014, © The NPD Group, Inc.
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Luxury Food And Beverage Market On The Rise

November 12, 2014: 12:00 AM EST
Fashionistas are becoming foodies, according to a report from a fashion conference held recently in Milan, Italy. People whose need to live a luxury lifestyle has been fulfilled by haute couture and high fashion are now fueling the growth of a luxury food and beverage market. Though still in the early stages, the premium food market “is giving clear signals of future development, especially in some segments such as coffee and spirits," one expert said. Premium food could duplicate the success of the luxury market. A few niche food companies in the U.S. are posting double-digit growth similar to the fashion industry in the past. As a sign of the times, fashion house Prada this year bought an 80 percent-stake in a 190-year-old Milanese patisserie.
Marzia De Giuli, "Feature: Can premium food replicate success of global luxury market?", Shanghai News Daily, November 12, 2014, © Shanghai Daily
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Salad Vending Machines Encounter A Basic Problem: Some People Hate Salad

November 12, 2014: 12:00 AM EST
A 28-year-old Chicago-based entrepreneur is betting his future on a belief that if people could find fresh, delicious, convenient – and yes, healthy – food, they would spend money like there was no tomorrow. Luke Saunders’ vending kiosks are designed to deliver on that belief. For seven dollars and up, customers can buy fresh salads made from a variety of healthful ingredients, including blueberries, kale, fennel and pineapple, all delivered in layers in plastic canning-style jars. The Farmer’s Fridge machines are placed where there is a dearth of salad restaurants – in private office buildings, food courts, and convenience stores. They offer more healthful fast foods than McDonald’s or Wendy’s. But in his short experience testing the kiosks, Saunders has encountered one frustrating fact: some people just won’t eat anything but “the usual” -- burgers, pizza, chicken, etc.
Olga Khazan, "The Dreadful Inconvenience of Salad", The Atlantic, November 12, 2014, © The Atlantic Monthly Group
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Walmart Orders Store Managers To Improve Fresh Section's Performance, Sales

November 11, 2014: 12:00 AM EST
Walmart instructed managers at its stores across the United States to improve the performance of “Chilled and Fresh” items in the retailer's dairy, meat, and produce sections. Part of Walmart's efforts to stop sales from declining further, the move also seeks to deal with customer complaints about the state of its fresh produce business. Reminding store managers that their primary responsibility is driving sales, the memo issued by Walmart also calls on managers to cut backup inventory to reduce costs and urges them to avoid exceeding store budgets. Some retail market analysts, however, believe that Walmart's problems are caused by its failure to deploy enough employees in its stores to perform the many tasks that need to be accomplished, such as identifying old stocks and keeping store shelves fully stocked.
Steven Greenhouse and Hiroko Tabuchi, "Walmart Memo Orders Stores to Improve Grocery Performance", New York Times, November 11, 2014, © The New York Times Company
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P&G, Walmart Partner With NFL Player Jared Allen To Help Chicago Veterans

November 11, 2014: 12:00 AM EST
Procter & Gamble and Walmart partnered with Chicago Bears football team's defensive end Jared Allen and his foundation, Jared Allen's Homes for Wounded Warriors, to celebrate 2014 Veterans Day in Chicago. In collaboration with the Eddie Beard Homeless Veterans' Housing Program, Allen's group will help improve the lives of local veterans. As part of the initiative, Allen will buy P&G products at a local Walmart store on November 11, 2014.
"P&G and Walmart Team Up With Chicago Bears’ Jared Allen in Support of Veterans", Procter & Gamble, November 11, 2014, © Procter & Gamble
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Promotions No Longer Enough To Boost Sales Of Personal Care Products, Analysts Say

November 10, 2014: 12:00 AM EST
Promotion campaigns are becoming less effective in driving retail sales of personal care products, according to market analysts. For example, sales of personal care products slowed down across Europe in 2013, with growth rate falling by -0.2 percent in terms of value to just below €28 billion, while volume sales were flat, according to IRI. Data revealed that “on average every third product in personal care is sold on deal”. Deodorants and sun preps are the most heavily promoted products. In Europe, more than 43 percent are sold on deal, and 57 percent for sun preps in the United States.   Retailers in the UK offer the highest volume on deal, with 56 percent of products sold via promotional activities.
Emily Mayer, IRI, "Have Consumers Had Enough of Promotions?", Happi.com , November 10, 2014, © Rodman Media
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Many Fruit Juices For Kids Sold In The U.K. Are More Sugary Than Coca-Cola

November 10, 2014: 12:00 AM EST
More than 25 percent of fruit juices targeted at children and sold in British supermarkets contain as much or more sugar than Coca-Cola. According to a report by Action on Sugar, store brands from Waitrose, Tesco, Sainsbury’s and ASDA were “among the worst culprits”. For example, ASDA’s Chosen by Kids tropical juice drink contains seven teaspoons of sugar per 200 ml -- more than a teaspoon more than regular Coke. A quarter of the juice drinks contain added sugar or glucose-fructose syrup. Health experts from Action on Sugar urge parents to skip fruit juices altogether, except perhaps at mealtimes.
Sarah Knapton, "Fruit drinks aimed at children contain more sugar than Coca-Cola", The Telegraph, November 10, 2014, © Telegraph Media Group Limited
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Aldi Pledges 35,000 New Jobs In UK

November 10, 2014: 12:00 AM EST
Discount retailer Aldi promised to create 35,000 new jobs in the UK as part of its expansion plans in the country. Aldi said it plans to invest £600 million to increase its store count to 1,000 by 2022. At present, Aldi has a 4.8 percent share of the UK's grocery market, opening 42 new stores in 2013 and 54 more in 2014.
"Aldi to create 35,000 new UK jobs", Daily Mail, November 10, 2014, © Associated Newspapers Ltd
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“Bread Lady’s” Small Business Typifies A Growing Trend

November 10, 2014: 12:00 AM EST
Every weekend morning, dozens of people in the Cape May, N.J., area drive, bike, or walk to a small farm stand to buy loaves of bread baked that week in a clay wood-fired oven.  A variety of bread flavors are available from the 28-year-old “the bread lady” and her partner, including beet and dill, rosemary and thyme, smoked garlic, and others. Elizabeth Degener – the fourth generation of the family that has owned the farm -- says her “free-form” business is "very lighthearted". It is also an example of a growing trend: people living off the land and supplying local communities with fresh produce and home-produced foods. It’s also perhaps a sign of how far peoples’ tastes in bread have evolved from the Wonder Bread days.
Jacqueline L. Urgo, Inquirer Staff Writer, "Cape May bread maker at forefront of new food movement", Philly.com, November 10, 2014, © Interstate General Media, LLC
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New Pizza Hut Menu Debuts Soon

November 10, 2014: 12:00 AM EST
On November 19, Pizza Hut will introduce a new menu, a new ordering system and a new logo. The menu will feature 11 new signature pizzas, six new sauces, 10 crust flavors and four "drizzles". It’s a strategic gamble, according to industry experts: keeping up with the times by offering “bold new flavors”, avoiding irrelevance, all while keeping current customers happy. (Old favorites -- Stuffed Crust, Meat Lover’s and Supreme -- will still be on the menu.) After a taste preview with other media members, Time food writer Josh Sanburn gave a positive review. He said the new offerings taste – “thankfully” – better than they sound. “The Cock-a-Doodle Bacon," he asks. "Why?”
Josh Sanburn, "What Pizza Hut’s Radical New Menu Actually Tastes Like", Time, November 10, 2014, © Time
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Metro Joins Ebay, PayPal To Test Digital Platform

November 10, 2014: 12:00 AM EST
Metro Group partnered with eBay and PayPal to evaluate the Store of Inspiration retailing concept, which combines conventional offline sales with online sales using mobile apps. Being tested at a shopping center in Bremen, Germany, the platform allows shoppers to buy products using digital displays or their smartphones.
"Metro and eBay are testing new concept store", Fresh Plaza, November 10, 2014, © Fresh Plaza
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Wal-Mart's July Quarter Sales Hurt By China's Austerity Drive

November 9, 2014: 12:00 AM EST
Wal-Mart Stores Inc. said same-store sales in China decreased 1.6 percent for the quarter ending July 2014, compared with the same period in 2013. Wal-Mart Asia president Scott Price said the decline in sales was caused by lower sales of gift cards, moon cakes, and other products commonly used in gift giving in the country. China's campaign against lavish spending is discouraging government and business leaders from buying expensive goods. Also, growing competition from local retailers and e-commerce companies is also hurting Wal-Mart's revenue in the country.
Laurie Burkitt, "Wal-Mart Feels Pinch From China Austerity Campaign", Wall Street Journal, November 09, 2014, © Dow Jones & Company, Inc.
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Target Appoints Rice SVP, Chief Risk And Compliance Officer

November 6, 2014: 12:00 AM EST
Target Corp. appointed Jacqueline Hourigan Rice as senior vice president and chief risk and compliance officer. Effective on December 1, 2014, Rice's appointment will include oversight of the company's “enterprise risk management, compliance, vendor management, and corporate security”. Before her appointment, Rice worked at General Motors for 17 years, occupying important management roles including that of chief compliance officer.
"Target Names Jacqueline Hourigan Rice as Senior Vice President, Chief Risk and Compliance Officer", Target.com, November 06, 2014, © Target.com
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Wal-Mart Aims To Make Organic Food Affordable For All Consumers

November 6, 2014: 12:00 AM EST
Wal-Mart Stores is expanding the range of organic foods it is selling in the United States. Moreover, the world's largest retailer aims to sell organic food products at the same prices it sells non-organic food items. At present, most organic food products cost at least 25 percent more than their non-organic counterparts. Wal-Mart said it will partner with organics supplier Wild Oats to keep prices low. Today, Wal-Mart accounts for more than 90 percent of Wild Oats' sales, “democratizing organic to the masses” in the process.
Andrew Martin, "Wal-Mart Promises Organic Food for Everyone", Bloomberg Businessweek, November 06, 2014, © BLOOMBERG L.P.
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Chicago-Area Peapod Will Now Deliver Barilla Pasta Dinner Kits

November 5, 2014: 12:00 AM EST
Peapod grocery delivery in the Chicago area has teamed with Barilla to offer two pre-measured, pre-packaged dinner kits that feature pasta for a family of four. The meal kits can be ordered with any other Peapod grocery delivery order via desktop, smartphone or tablet. The meal kits, based on recipes developed by Barilla chefs, are designed to be prepared in under 30 minutes for less than $5.00 per serving (about $12.00 a kit). The two meal kits are parmesan crusted chicken with spaghetti and baked rotini.
"Barilla and Peapod Introduce Exclusive Pasta Meal Kits as Easy Mealtime Solutions to Chicagoland Families", News release, Barilla, Peapod, November 05, 2014, © Barilla, Peapod
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Amazon Tries Delivery Service Using Taxis

November 5, 2014: 12:00 AM EST
Online retailer Amazon.com Inc. tested a package delivery service using licensed cabs in San Francisco and Los Angeles. Amazon partnered with Flywheel Software Inc., using the company's taxi-hailing mobile application to call cabs, which are then loaded with packages for delivery within one hour. Taxis are part of Amazon's efforts to speed up delivery of products to consumers, which include testing its own delivery service, opening a storefront for returns, pickups, and same-day delivery, and aerial drones for dropping off packages.
Greg Bensinger, "Amazon Is Testing Taxis for Deliveries", The Wall Street Journal, November 05, 2014, © Dow Jones & Company, Inc.
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Pizza Shop Produces Dough Using Wheat Variety That Delivers Old World Flavor

November 5, 2014: 12:00 AM EST
A public laboratory in Washington State whose main goal is to return flavor to wheat has tested 40,000 varieties on its acreage. One of them is Edison wheat, a hard white spring wheat grown on a small farm in Oregon. The owners of Denver’s Pizzeria Locale, who wanted to make pizzas that taste like those produced in Italy a hundred years ago, worked with Edison whole wheat flour and finally created “a dough that makes them proud”. Made only with flour, water, yeast and salt, the whole wheat pizza dough delivers true wheat flavor “the way it tasted before it was industrialized and bred for productivity”.    
Colleen O'Connor, "Pizzeria Locale in Denver at leading edge of wheat bread revolution", The Denver Post, November 05, 2014, © The Denver Post
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Whole Foods Market Posts Higher Net Income For September 2014 Quarter

November 5, 2014: 12:00 AM EST
Whole Foods Market said same-store sales increased 3.1 percent in the fourth quarter ending September 28, 2014. Net income grew to $128 million, or 35 cents per share, for the quarter, beating average analyst forecast of 32 cents per share. Analysts forecast the high-end retailer's sales to reach $15.84 billion in fiscal 2015, market information company Thomson Reuters I/B/E/S said.
"Strong sales at Whole Foods allays concerns about rivals", Fortune, November 05, 2014, © Time Inc.
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Despite Keen Competition In Organic Retail, Whole Foods Reports Solid Profits

November 5, 2014: 12:00 AM EST
Whole Foods Market posted 4th quarter earnings of $128 million, an increase of 5.7 percent ($0.35 a share) on revenues of $3.26 billion (up 9.4 percent over 2013). The strong profit report comes in the face of increased competition in the organic sector from mainstream supermarket and retail grocery chains. Whole Foods acknowledged the tougher competitive environment, but said “no one offers the shopping experience we offer”. Company CEO Walter Robb said Whole Foods embraces a “higher standard” that gains and retains customers.
"Whole Foods Market Reports Fourth Quarter Results", Whole Foods Market, November 05, 2014, © Whole Foods Market, Inc.
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UK Retail Prices Drop Faster In October 2014

November 4, 2014: 12:00 AM EST
Retail prices in the UK declined 1.9 percent in October 2014, compared with the same month in 2013, according to the British Royal Consortium. Prices for food products inched up 0.1 percent, compared with a 0.3 percent in September 2014. Grocery stores implemented deep discounting, data showed. Consumers are enjoying low prices, thanks to a decline in global food prices over the past half year, according to Nielsen analyst Mike Watkins. Also, UK's leading supermarkets have been engaged in a growing price war, driven by discount retailers, such as Aldi and Lidl.
Andy Bruce, "UK shop price decline quickens in October: BRC", Reuters, November 04, 2014, © Thomson Reuters
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Wal-Mart Names Scott Price President And CEO Of Walmart Asia

November 4, 2014: 12:00 AM EST
Wal-Mart Stores, Inc. appointed the company's current executive vice president for International Strategy and Business Development, Scott Price, as president and chief executive officer of Walmart Asia. As part of Price's appointment, he regains responsibility for the retailer's operations in China, Japan, and India. Before joining Wal-Mart, Price occupied various management positions in shipping company DHL and in Coca-Cola Company.
"Scott Price named President & Chief Executive Officer – Walmart Asia", Wal-Mart , November 04, 2014, © Wal-Mart Stores, Inc.
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Australian Pizza Company Involves Customers In Marketing With Mobile App

November 3, 2014: 12:00 AM EST
Domino’s Pizza Enterprises in Australia – a multinational franchise of America’s Domino’s Pizza Inc. -- is experimenting with social media marketing using a mobile app that allows customers to design their own pies, market them, and even keep a slice of the sales, which can vary from $0.22 to $2.86. The campaign that involves the Pizza Mogul app appears to be a success. According to the company, thousands of customers have signed up. Whether it contributes to the bottom line won’t be known until financial results are released in February 2015.
Ross Kelly, "Domino’s Pizza crowdsources its menu", Market Watch, November 03, 2014, © MarketWatch, Inc.
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FDA Recalls Of Dietary Supplements Often Fail To Get Dangerous Products Off Shelves

November 3, 2014: 12:00 AM EST
The FDA recalled 274 dietary supplements between January 2009 and December 2012 because they were adulterated with ingredients that had a reasonable possibility of causing serious harm or death. In a new study that focused on 27 (9.9 percent) of the recalled supplements, Harvard Medical School scientists using gas chromatography/mass spectrometry found that two-thirds containing adulterants were still on store shelves an average of 34.3 months (range 8-52 months) after the FDA recall. Supplements still being sold were adulterated in 85 percent of sports enhancement products, 67 percent of weight loss products, and 20 percent (1/5) of sexual enhancement products. Sixty-five percent of U.S.-produced supplements remained adulterated with banned ingredients.
Pieter A. Cohen et al., "Presence of Banned Drugs in Dietary Supplements Following FDA Recalls. ", JAMA, November 03, 2014, © American Medical Association
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Crumbs Bake Shop To Test Snack Bar In Ill. Supermarket

October 31, 2014: 12:00 AM EST
The Roundy’s Supermarket chain has agreed to test a Crumbs fresh, sweet and snack bar featuring Crumbs cupcakes and brownies in a Manano’s store in Westchester, Ill. Crumbs Bake Shop operates 25 retail stores in the U.S., and sells its products online. The joint venture Lemonis Fischer Acquisition Company acquired Crumbs Bake Shop in mid-August after Crumbs closed all its shops. Roundy’s operates 160 retail grocery stores and 98 pharmacies under the Pick ‘n Save, Copps, Rainbow, Metro Market and Mariano’s banner.
Eric Schroeder, "Crumbs to open test pilot ‘bar’ in Roundy’s Supermarkets", BakingBusiness.com, October 31, 2014, © SOSLAND PUBLISHING CO.
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Seiyu Reveals Plans To Improve Customer Experience, Expand Online Operations

October 30, 2014: 12:00 AM EST
Wal-Mart Stores Inc.'s Japan business, Seiyu GK, said it plans to invest in improving in-store customer experience and expand its online retail operations. Also, the company said it will push its Every Day Low Cost program and improve productivity to strengthen its Every Day Low Price strategy. In particular, the company plans to speed up the renovation and remodeling of existing stores and improve its capabilities to manufacture deli products and improve quality controls for fresh foods.
"Seiyu to Strengthen EDLP and Focus on Freshness and Convenience", Walmart, October 30, 2014, © Wal-Mart Stores, Inc.
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Tesco Weighs Exiting Asian Retail Market

October 30, 2014: 12:00 AM EST
Tesco is planning to sell its Asian operations after seeing its profit and market share decline. Richard Broadbent resigned as chairman of the world's third-largest retailer following reports of a probe into the company's alleged accounting improprieties, which saw the company inflating profit announcements. Mistakes in international investments by Tesco, which posted a 41 percent drop in operating profits and more than 90 percent in pre-tax profits in the first half of 2014, also played a significant role in the company's existing problems, according to Planet Retail analyst David Gray. In May 2014, Tesco sold most of its China operations to state-owned China Resources Enterprise.
"Tesco may spin off Asian operations after ceding control of China arm", WantChinaTimes, October 30, 2014, © WantChinaTimes.com
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Wal-Mart Looks At Matching Online Prices To Grab Bigger Slice Of E-commerce Pie

October 30, 2014: 12:00 AM EST
Wal-Mart Stores Inc. is evaluating a program that would match online prices offered by rivals, such as Amazon.com Inc., for the coming 2014 holiday season. Likely to adversely affect the company's profits, the move aims to expand the retailer's share of the online market. Consumers are forecast to spend more than 44 percent of their holiday shopping budget on online purchases in 2014, compared with 31 percent in 2009, data from the National Retail Federation showed. For quite sometime, Wal-Mart has refused to match online prices; however, its failure to attract shoppers to its large supercenters prompted it to invest significantly in ecommerce and small-format stores. As part of these efforts, Wal-Mart introduced its online and mobile app Savings Catcher, which compares prices and refunds price differences between its offerings and those of its competitors.
Shelly Banjo, "Wal-Mart Weighs Matching Online Prices", Wall Street Journal, October 30, 2014, © Dow Jones & Company, Inc.
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UK' Serious Fraud Office Begins Probe Into Tesco's Accounting Practices

October 29, 2014: 12:00 AM EST
Tesco said the UK's Serious Fraud Office has launched a probe into the retailer's accounting practices. SFO's move followed Tesco's admission of over-stating profits by $424.6 million by advancing forward payments from suppliers and delaying costs. UK managing director Chris Bush and seven other executives were suspended while the company conducts its own investigation.
Katy Askew, "Serious Fraud Office launches Tesco probe", Just-Food, October 29, 2014, © just-food.com
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Almost A Quarter Of US Consumers Already Doing Their Christmas Shopping In October 2014, Nielsen Says

October 28, 2014: 12:00 AM EST
In the United States, 22 percent of consumers are already doing their holiday shopping as of the fourth quarter of 2014, according to Nielsen. Data revealed 27 percent of women said they have started their shopping, while only 12 percent of men did. Among women, 10 percent said they are not going to shop at all in 2014, with 18 percent of men saying the same thing. About 22 percent of households are already shopping, and 30 percent of them have five or more members, and 32 percent have children younger than 12 years. Nielsen expects flat retail sales in terms of unit, but dollar sales should rise 1.8 percent.
"Christmas in October? Not quite, but 22% of Americans are already shopping", Nielsen, October 28, 2014, © The Nielsen Company
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Metro Plans Compact Retail Stores For Moscow Market

October 28, 2014: 12:00 AM EST
Metro Cash & Carry plans to open a chain of compact retail stores in Moscow. According to company chairman Olaf Koch, the compact retail format will provide Russian consumers with simplified access to the company's products. Koch also said his company is interested in opening “large agricultural clusters” in the Russian capital.
"Retailer Metro to open in Russia compact format shops", Fresh Plaza, October 28, 2014, © Fresh Plaza
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Carrefour, DIA, Aldi Expand Retail Operations In Spain

October 28, 2014: 12:00 AM EST
Retailers Carrefour, DIA, and Aldi are expanding their operations in Spain, opening new stores in the cities of Murcia, Madrid, and Seville, respectively. Carrefour opened a new franchised store in Murcia under the Carrefour Express brand. DIA opened a DIA Market-branded store in Madrid, discount retailer Aldi plans to open its 15th Spanish store in Seville.
"Spain: Growth of Carrefour, DIA and Aldi", Fresh Plaza, October 28, 2014, © Fresh Plaza
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HUL Partners With India's Leading E-commerce Firms, Expands Online Retail Efforts

October 28, 2014: 12:00 AM EST
Hindustan Unilever Ltd is collaborating with retailers, such as Kishore Biyani's Big Bazaar, and online retailers, including Amazon and Flipkart, to sell the FMCG company's products through their online stores. Although electronic commerce is fast growing in India, FMCG products are not among the country's top 5 categories in the online retail market. Nevertheless, leading FMCG brands, such as PepsiCo, Kellogg, and HUL, have begun partnering with online retailers.
Sapna Agarwal, "HUL strengthens e-commerce efforts ", Live Mint, October 28, 2014, © HT Media
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Bath & Body Works Opens Second Singapore Store, Plans First Outlet In Malaysia

October 27, 2014: 12:00 AM EST
Body care retailer Bath & Body Works opened its second store in Singapore. Also, the company plans to open its first store in Malaysia, according to reports. For many years, Malaysian consumers have been purchasing Bath & Body Works products via online shopping. At present, the company operates more than 1,600 stores in North America, and about 100 stores overseas.
Melody L. Goh, "Now we can all smell lovely: Bath & Body Works comes to Asia", The Star, October 27, 2014, © Star Publications
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Walmart Says Sorry For Calling Large-Size Halloween Selection Fat Girl Costumes

October 27, 2014: 12:00 AM EST
Retailer Walmart apologized for labeling plus-size Halloween costumes sold on its online store as “Fat Girl Costumes”. Twitter user Kristyn Washburn was one of the first to bring the matter to the retailer's attention and promptly began a social media alert. A Walmart spokesperson said the incident was “unacceptable,” and assured everybody the company was doing everything to prevent it from ever happening again.
Ana Calderone, "Walmart Apologizes for Labeling Plus-Size Halloween Wear as 'Fat Girl Costumes'", People.com, October 27, 2014, © Time Inc.
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Target Expands Urban-Based Smaller Stores Concept

October 24, 2014: 12:00 AM EST
Target announced its plans to open a CityTarget store in Brooklyn, New York, and add five more TargetExpress stores in 2016. According to Target CEO Brian Cornell, the expansion moves are part of the company's efforts to win customers in the country's urban centers. Target's push for smaller stores in urban markets, however, faces competition from similar initiatives of rivals, including Wal-Mart Stores, Ulta Beauty, and Kohl's. Also, drugstore chains, such as Walgreens and CVS, are expanding their selection of food products.
Phil Wahba, "Target thinks outside the (big) box", Fortune, October 24, 2014, © Time Inc.
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Wal-Mart Appoints Lanka COO Of India Business

October 23, 2014: 12:00 AM EST
Wal-Mart Stores Inc. appointed Murali Lanka as chief operations officer of its business unit in India. Lanka's responsibilities will include management of stores operations, sales, business development, and marketing. He will report to Walmart India CEO Krish Iyer. His appointment highlights a return to India for Lanka, who was part of the founding team at Wal-Mart's terminated joint venture with Bharti Enterprises Pvt Ltd.
"WalMart appoints Murali Lanka as chief operating officer of India business", Business Standard, October 23, 2014, © Business Standard Ltd.
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Wal-Mart Tries New Tack In Launching Business In India's Retail Sector

October 23, 2014: 12:00 AM EST
Wal-Mart plans to open a new wholesale store in the city of Agra in India, according to the Bloomberg News. According to the story, Wal-Mart is also looking at opening a wholesale store in Jaipur, capital of the Rajasthan state. Despite expansion plans for its wholesale business in India, Wal-Mart has no immediate plans to revive its previous efforts to launch a retail business in the country. Although the Indian government has eased some restrictions on foreign-owned retailers planning to operate in the country, other requirements, such as the need to partner with a local company, still discourage foreign investors to enter the local retail market. Wal-Mart, for example, had to dissolve its partnership with Bharti Enterprises in October 2013 after their retail plans failed to take off as the partners hoped they would.
Bruce Einhorn , "Wal-Mart Tries Again in India", Businessweek, October 23, 2014, © Bloomberg L.P.
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Wal-Mart's International Stores Function As Testing Ground For New Ideas For Retail Group's US Division

October 23, 2014: 12:00 AM EST
Wal-Mart Stores is using its more than 11,000 retail stores across 27 countries as a testing laboratory for its Walmart US division, according to Walmart International CEO David Cheesewright. Speaking at the October 15, 2014, investor conference, the executive said a number of ideas being tested in American stores were first tried in international Wal-Mart stores. Ideas being evaluated include formats, services, as well as merchandising and product development, Cheesewright said. In 2014, Wal-Mart's international division is expected to post about $140 billion in sales.
Kim Souza, "Wal-Mart global operations are a testing lab for Walmart U.S. stores", The City Wire, October 23, 2014, © TCW Media
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Online Fashion Retailer Zalora Opens First Offline Store In Singapore

October 23, 2014: 12:00 AM EST
Southeast Asian online fashion retailer Zalora opened its first physical store in Singapore. The first such store for an online retailer in the region, the Zalora store is aimed at increasing “awareness of the online store among local consumers,” according to the company's regional managing director Tito Costa. Backed by Germany-based venture fund Rocket Internet, Zalora operates localized websites for Southeast Asian countries, including Singapore, Malaysia, and Indonesia. It sells clothing, shoes, and accessories from various international brands.
Newley Purnell, "Southeast Asia E-commerce Startup Zalora Opens First Offline Shop", The Wall Street Journal, October 23, 2014, © Dow Jones & Company, Inc.
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Unilever Paints Gloomy Picture Of World Economy

October 23, 2014: 12:00 AM EST
Though Unilever has been ringing alarm bells about the worsening world economy for some time, it now acknowledges the situation is gloomier than it once thought. Chief Financial Officer Jean-Marc Huët says the company’s sales are sagging in every product category – including personal care, food, refreshment and household care – all over the globe. The glum assessments are echoed by policy makers. The International Monetary Fund trimmed its growth forecast by 0.002 percent while warning of the possibility of Europe re-entering a recession. China’s third quarter economy grew at the slowest pace in five years. “We are in a tougher environment. There is no other way to put it,” Huët said.
Simon Zekaria, "Unilever Surprised by Extent of Global Slowdown", The Wall Street Journal, October 23, 2014, © Dow Jones & Company, Inc.
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Tesco's Sales, Profits Take A Tumble In Six Months To August 2014

October 23, 2014: 12:00 AM EST
Tesco said group sales declined 4.4 percent to ₤34.0 billion for the six-month period ending August 23, 2014. At constant exchange rates, sales dropped 2.0 percent, with petrol, and 1.9 percent, excluding petrol. According to the company, group trading profit fell 41 percent to ₤937 million, compared with the same period in the previous year. Group trading margin was 3.04 percent, 189 points lower year-on-year, the company said.  Underlying profit before tax also dropped 46.6 percent to ₤783 million, while group profit before tax was ₤112 million.
"TESCO INTERIM RESULTS 2014/15", Tesco, October 23, 2014, © Tesco plc
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METRO, Auchan Sign Global Purchasing Partnership Deal

October 23, 2014: 12:00 AM EST
Retailer METRO Group entered into an international purchasing agreement with food retailer Groupe Auchan. Involving two agreements, the deal will combine and leverage the strenghts of Auchan and METRO's wholesale and food retail divisions. As part of the agreement, the firms will conduct joint negotiations on particular international services and conditions for major global suppliers of branded consumer products. Also, the partners will adopt an international sourcing deal covering non-food products each intends to sell under their own brand labels. The agreements do not include electronic consumer products, the companies said.
"METRO and Auchan enter into an international purchasing partnership", METRO GROUP, October 23, 2014, © METRO AG
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Mintel Pinpoints Key Consumer Trends For 2015

October 23, 2014: 12:00 AM EST
Mintel has identified four major U.S. market trends that will affect consumers and brands in 2015. The “Get Smart” trend refers to the fact that manufacturers and retailers are responding to the 59 percent of U.S. consumers who say they want to use an app or Web site to control devices – from watches to ceiling fans – in their home. “My Wallet, My Way” alludes to the consumer desire for on-demand convenience that is blurring the lines between digital and brick-and-mortar retail. “Fight for Your Rights” is the emerging consumer demand for more fairness and justice from companies, expressed via "clicktivism,” the ability to express one's opinion, support or dislike digitally.  The “Gender Agenda” refers to consumer questioning of traditional notions of gender -- especially the rejection of the restraints of stereotypes.
"Mintel releases 2015 US consumer trends", Report, Mintel , October 23, 2014, © Mintel Group Ltd.
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Online Retailers Raise Costs Of Free Shipping

October 22, 2014: 12:00 AM EST
Retailers, such as Amazon.com Inc., Best Buy Co., and Gap Inc., are raising the amount that online shoppers need to buy to be able to avail themselves of free shipping. July 2014 data from market researcher StellaService Inc. revealed a customer has to spend an average of $82 on products to qualify for free shipping, up from $76 year on year. For example, Amazon raised its free-shipping threshold from $25 to $35 in 2013, and increased the membership fee for its Prime delivery service in March 2014. The trend highlights the efforts of retailers and shipping firms to cover their shipping costs; however, a small group of retailers, which includes Amazon's Zappos, Nordstrom Co., and L.L. Bean, still offer no-minimum free shipping.
Laura Stevens et al, "Free Shipping Is Going to Cost You More", The Wall Street Journal, October 22, 2014, © Dow Jones & Company, Inc.
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Aldi Launches Affordable Range Of Organic Foods In UK

October 22, 2014: 12:00 AM EST
Discount retailer Aldi launched in the UK an affordable line of organic products the company claims will let customers save 25 percent on their typical organic purchases. According to the company, the budget organic food range will include potatoes, carrots, broccoli and onions. Other product lines will feature fresh meat, convenience foods, including ready-to-eat meals, beers, and wines. Scheduled for launch over the next months, all product lines will be available by January 2015, the company said.
Mike Stones, "Aldi launches new organic range in upmarket bid", FOODmanufacture.co.uk, October 22, 2014, © William Reed Business Media Ltd
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Staples Joins Growing List Of U.S. Retailers Attacked By Cybercriminals

October 21, 2014: 12:00 AM EST
Office supplies retailer Staples revealed its computer systems were compromised in a cyber-attack incident affecting customers' credit- and debit-card information. According to the company, it is cooperating with law enforcement authorities to assess the scope of the cyber-attack. Other recent incidents of hacking or cyber-attack include those reported by Sears Holdings Corporation's retail business Kmart, and other retailers, such as Target, Supervalu, and Home Depot. Based on Secret Service estimates, about 1,000 United States-based merchants had been affected by cyber-attacks and similar incidents.
Nicole Perlroth, "Staples Is Latest Retailer Hit by Hackers", The New York Times, October 21, 2014, © The New York Times Company
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