Aldi has launched a new entry level private label brand called Everyday Essentials. The brand – which uses a basic red, white and black colour scheme – has so far been used for SKUs in meat, chilled food, rice products and soft drinks. The Everyday Essentials soft drink SKU, for example, is sold at around half the price of Aldi’s standard PL product. The new brand has been used as part of a broader ‘Everyday Essentials’ marketing programme that includes existing Aldi brands such as Harvest Morn cereals as well as new ‘value’ SKUs in categories such as paper products and pizzas.

According to Retail Week, Waitrose will phase out Alliance Boots' health and beauty products from its stores. 

• Commenting on the move, Waitrose spokesperson stated that Boots health and toiletries trial currently running in 13 Waitrose stores was not performing well and will be phased out from January 2012.
  • Waitrose is slated to replace the line by own-label or branded products.
  • Boots stated that it will continue to sell Waitrose food lines, with trials underway in 34 Boots stores.
• The development will not affect their pharmacy partnership and Boots will continue to run pharmacies in 13 Waitrose stores.
• In March 2010 both the retailers started selling select products ranges in each other's stores on a trial basis.
  • Under the agreement, Waitrose was selling Boots' health and beauty range, including No7 skincare range, while Boots was selling Waitrose lunchtime range, such as sandwiches and snacks

Amazon entered the fast-growing Indian ecommerce market with Junglee.com.  To start with, this shopping website will offer over 12 million products that include 14,000 Indian and global brands and the top-selling Kindle e-reader.  Amazon first fulfillment centers in India will also be set up to support Junglee.com.

Amazon is enthused to compete with the likes of Flipkart, India’s largest online bookseller, and other Indian online retailers.  Amazon vice president Amit Agarwal states: “We are excited to give customers in India a single online starting point where they can shop a wide selection of products sold by local and global retailers, and make informed purchasing decisions.”

 Total Company Financial Results Highlights – Q4

For fourth quarter ending December 31, 2011, Amazon.com reported net sales of USD 17.43 billion, up 35% (or 37% excluding foreign exchange rate) from USD 12.95 billion in this period last year.  Earnings were negatively affected by investment in the AWS infrastructure, digital media content for such as streaming video and e-book titles, fulfillment, and marketing.

• Net income decreased 58% to USD 177 million, compared to USD 416 million for the same period in 2011.
• Operating income was USD 260 million, compared to USD 474 million for the same period in 2011. 
• Free cash flow decreased 17% to USD 2.09 billion for the trailing twelve months, compared to USD 2.52 billion for the previous period.

Segment Financial Highlights – Q4

• The North American segment, including Canada and the US, reported sales rose 37% this quarter to USD 9.90 billion.  By category, segment sales and growth YoY:
  • Media: USD 2.56 billion, 8%
  • Electronics and general merchandise: USD 6.88 billion, 51%
  • Other: USD 459 million, 62%
• The International segment, including the UK, German, Japanese, French, Chinese, and Italian websites, reported sales increased 31% for the period to USD 7.53 billion.  Excluding the positive exchange rates impact, the company explained sales would have risen by 29%.  By category, segment sales and growth YoY:
  • Media: USD 3.45 billion, 20%
  • Electronics and general merchandise: USD 4.03 billion, 42%
  • Other: USD 50 million, 32%
• Worldwide Media sales grew 15% to USD 6.01 billion; excluding favorable exchange rates, sales grew 14%
• Worldwide Electronics and Other General Merchandise sales grew 48% to USD 10.91 billion; excluding favorable exchange rates, sales grew 47%

Total Company Financial Results Highlights – Fiscal/Full Year 2011

For full year ending December 31, 2011, Amazon.com earnings were negatively affected by investment in the AWS infrastructure, international online stores, digital media content, a new publishing arm, 17 new fulfillment centers, and head count in these distribution centers and customer services support. 

• Net income decreased 45% to USD 631 million, compared to USD 1.15 billion in 2010.
• Net sales of USD 48.08 billion, up 41% from USD 34.20 billion in this period last year. Adjusting for favorable exchange rates, the retailer reported that sales would have risen 37%.  
• Operating income was USD 862 million, decreasing 39% from USD 1.41 billion in 2010.
• Free cash flow decreased 17% to USD 2.09 billion for the trailing twelve months, compared to USD 2.52 billion for the previous period.
• Worldwide active customer accounts exceeded 164 million, up 26% from over 130 million in Q4 2010.
• Worldwide seller accounts were over 2 million.  Seller units were 36% of total unit sales, up 4 percentage points from Q4 2010.

Segment Financial Highlights – Fiscal/Full Year 2011

• The North American segment, including Canada and the US, reported sales rose 43% in 2011 to USD 26.71 billion.  By category, segment sales and growth YoY:
  • Media: USD 7.96 billion, 16%
  • Electronics and general merchandise: USD 17.32 billion, 57%
  • Other: USD 1.43 billion, 73%
• The International segment, including the UK, German, Japanese, French, Chinese, and Italian websites, reported sales increased 38% for the period to USD 21.37 billion.  Excluding the positive exchange rates impact, the company explained sales would have risen by 31%.  By category, segment sales and growth YoY:
  • Media: USD 9.82 billion, 55%
  • Electronics and general merchandise: USD 11.40 billion, 24%
  • Other: USD 155 million, 38%
• Worldwide Media sales grew 19% to USD 17.78 billion; excluding favorable exchange rates, sales grew 16%
• Worldwide Electronics and Other General Merchandise sales grew 56% to USD 28.71 billion; excluding favorable exchange rates, sales grew 53%

Looking Forward

The online retailer expects net sales of between USD 12.0 billion and 13.4 billion for the first quarter 2012, or growth between 22% and 36% compared with the same period in 2011.

On Jan 29th, Bu Bu Gao China announced its 2012 expansion strategy.

• Management aims to open over 40 stores, around 500,000 sqm in total selling place across the country in 2012. 
• The expansion will be predominant in tier 3 and tier 4 cities.

Bu Bu Gao China has newly added 20 stores which include 2 shopping mall centers in 2011, and sales totaled nearly RMB 13 billion, posting a 30% comps increase.

Chief Executive Officer of Majid Al Futtaim, Iyla Malas, has revealed plans to open 45 new stores in the region during 2012.

• The plans includes the opening of 15 hypermarkets and up to 30 supermarkets.
• The group also released its 2011 results showing that the retail unit earnings increased 20% year-over-year (y-o-y) to AED 927 million (EUR 191.6 million) on the back of a 2.2% increase in sales to AED 15.2 billion (EUR 3.1 billion).
• Majid Al Futtaim is the franchise partner of Carrefour in the Middle East and North African region.

Lars Olofsson, Carrefour Chairman and CEO, has announced the departure of Pierre Bouchut, Executive Director Growth Markets. Olofsson will be responsible for this division in the interim.

According to French magazine Linéaires , Jean-Pierre Lanzetti, Director of the Convenience Division, has left Casino.

China Resources Vanguard (CRV), a retail arm under China Resources Enterprise (CRE), opened one store in Tianjin municipality on 18^th January 2012.

• The supermarket under CR Vanguard Fresh Market banner covers a selling space of 5,840 square meters and provides over 20,800 SKUs of merchandises.
• The company currently operates approximately 30 CR Vanguard Fresh Market stores across the country.

Dixy reported consolidated sales (including Victoria) of RUB 102.2 billion for the 12 months ending 31 December 2011, an increase of 59.1% year-over-year (y-o-y).
•    Neighborhood stores reported sales of RUB 82.3 billion, an increase of 51.4%.
•    Supermarkets reported sales of RUB 9.9 billion, an increase of 354.3%.
•    Hypermarkets reported sales of RUB 8.5 billion, an increase of 17.4%.
•    Cash & Carry stores reported sales of RUB 512.9 million.

Dixy reported pro-forma sales (excluding Victoria) of RUB 121.8 billion for the 12 months ending 31 December 2011, an increase of 19.7% y-o-y.
•    Neighborhood stores reported sales of RUB 95.1 billion, an increase of 21.3%.
•    Supermarkets reported sales of RUB 15.9 billion, an increase of 13.5%.
•    Hypermarkets reported sales of RUB 8.5 billion, an increase of 17.4%.
•    Cash & Carry stores reported sales of RUB 957.4 million, an increase of 0.6%.

Dixy reported consolidated sales (including Victoria) of RUB 13.1 billion for December 2011, an increase of 89% y-o-y.
•    Neighborhood stores reported sales of RUB 9.9 billion, an increase of 70.6%.
•    Supermarkets reported sales of RUB 1.8 billion, an increase of 690.4%.
•    Hypermarkets reported sales of RUB 1.1 billion, an increase of 32.8%.
•    Cash & Carry stores reported sales of RUB 117.7 million.

Dixy reported pro-forma sales (excluding Victoria) of RUB 13.1 billion for December 2011, an increase of 18% y-o-y.
•    Neighborhood stores reported sales of RUB 9.9 billion, an increase of 17.4%.
•    Supermarkets reported sales of RUB 1.8 billion, an increase of 13.5%.
•    Hypermarkets reported sales of RUB 1.1 billion, an increase of 32.8%.
•    Cash & Carry reported sales of RUB 117.7 million, a decrease of 5.8%.

According to LZ.net, Edeka is trialing its own click and collect service, "Edeka drive," in an E Center in Mannheim and E Neukauf in Heilbronn. It is still in its testing phase and the service will be advertised locally. The stations are open Monday to Saturday from 8am to 9pm and a service fee of EUR 3 applies for each transaction. Edeka Südwest will use this trial to decide if it is to roll out the concept in other areas.

According to Fashion United, John Lewis will launch a new private womenswear collection, 'JL Weekend', in February 2012.

• With prices starting from GBP 20, the collection will feature more than 80 items, including: cotton t-shirts cashmere cardigans, leather tote bags, and footwear.
• The clothing line, created by John Lewis design team, will be influenced by 'French chic and preppy US style'.

Kingfisher has announced the appointment of Steve Robinson at B&Q.

• Robinson, who will be at B&Q on an interim basis for six months, will oversee the retailer’s e-commerce operations.
• He will report to Martyn Philips, Chief Executive of B&Q, UK and Ireland.
• Prior to B&Q, Robinson most recently served as the Chief Executive of M&M Direct.
• He currently runs a consulting firm, Omnicommerce, and has been instrumental in launching Tesco Direct.
• Additionally, Robinson served as an Analyst at Kingfisher in the 1990’s and has served as a Finance Director at Argos.

South Korean Lotte Group plans to launch SSM (Super Supermarket) in China. it is claimed SSM is a format between hypermarket and traditional supermarket. This store format was launched in 2007 in its domestic market, and is planing to open first SSM, Lotte Super, in Beijing as early as April 2012

• Launch of SSM aims to target congested areas where hypermarkets are difficult to penetrate.
• Selling space will vary from 990 to 3,300 square meters.
• The store will sell both general merchandise and fresh food such as vegetables and seafood.
• The store will be sited in a shopping mall with high level of human traffic.

The company will open more Lotte Super stores, as the first store proves successful. The company will also seek M&A opportunities of local SSM to grow business scale. As of December 2011, Lotte had 95 Lotte Mart hypermarkets in China.

Marks & Spencer (M&S), in partnership with Samsung, launched an app for the latter's range of Smart TVs, on 2 February 2012.

• The app will enable viewers and shoppers to access how-to tools, trends, buying guides, and tips on lifestyle, food, fashion, and technology.
• The app, developed by UK based multichannel video agency Adjust Your Set, will be available to download from Samsung's Smart TV App store.
• The move forms part of the retailer's strategy to expand and focus on multi-channel operations.

Metro Cash and Carry has launched an online store in Romania under the Metro Office Direct name (www.metro.ro/direct). The store sells up to 4,500 office stationery products and various electronic appliances.

Morrisons has acquired a 105,000 square feet meat processing plant in Winsford, Cheshire, from Vion UK, to support growth and gain more control over the quality of meat products.

• The acquired site is a centralized fresh pork and lamb retail packing plant which has the capacity to expand into beef products.
• In a move to strengthen its manufacturing capabilities, Morrisons plans to invest GBP 200 million over a three year period.
  • As part of the strategy, the retailer acquired Derby-based flower supplier, FlowerWorld, in 2011.

O’key has announced plans to launch discount stores under the banner name, ‘Da’.

• With an estimated investment of USD 700 million, the retailer intends to open 200 stores and two distribution centers (DC) by 2018.  
• The format will be launched in 2014, together with the opening of the first 50,000 square meters (sq m) DC.
  • The average area of the store will be 1,400 sq m.
  • The first stores will be located in the Moscow region, with further expansion in other Russian regions.
• The retailer plans to open the second DC, with approximately the same selling area, prior to 2018.

In a move to change its premium image and attract cash-strapped shoppers with lower prices, Ocado has announced that it will cut prices on its products.

• As part of its new Savings Pass, Ocado plans to cut prices on around 600 items to make them 10% cheaper than equivalent products at Tesco.com.
• Shoppers will be able to view their savings on each item upon signing up for a yearly card priced at GPB 8.99.

Ocado reported that gross sales increased 16.6% to GBP 642.8 million for the fiscal year (FY) ending 27 November 2011.

• The increase in gross sales was driven by substantial increase in orders per week offset by a slight decrease in average order size.
  • Average orders per week in FY 2011 increased 18.6% to GBP 110,219 as compared to GBP 92,916 last year.
  • Average order size declined 1.7%% to GBP 112.15 from GBP 114.06 in the same period last year.
• The number of active customers increased 13.5% to 298,000.
• Net sales increased 16% to GBP 598.3 million as compared to GBP 515.7 million last year.
• Gross profits increased 14.3% to GBP 184.8 million. However, gross margin declined to 30.9% as compared to 31.3% during FY 2010 due to reduced delivery income per order, change in product mix, and increased sourcing and promotional costs.  
• Operating profits increased to GBP 1.1 million as compared to operating loss of GBP 5.4 million in FY 2010, aided by a 101% increase in other incomes driven primarily by the increased sale of space on Ocado Webshop. 
• Some other operational highlights were as follows:
  • Average deliveries per van per week improved to 145 as compared to 133 in FY 2010.
  • Percentage of items delivered exactly as ordered declined 70 basis points (bps) to 98.3%.
  • Percentage of deliveries done on or before time declined 260 bps to 92.3%.
  • Own label range increased to 620 products as compared to 250 products in FY 2010. 
  • Mobile devices used in FY 2011 by 18% of customer checkouts as compared to 12% last year.

Sainsbury's has partnered UK based workforce management solution provider, Kronos software, to control labor costs and improve workforce productivity.

• Under the terms of agreement, Kronos will manage and allocate the time, attendance and scheduling
• The move forms part of the retailer's commitment towards being a 'Great Place to Work'.

Sainsbury's has laid down plans to ramp up sourcing of food and beverages from Scottish suppliers.

• Speaking at the Regional Supplier Conference for local businesses in Edinburgh on 26 January 2012, Mike Coupe, Group Commercial Director, at Sainsbury's stated that this is in line with the '20 by 20 Sustainability Plan' to be achieved by 2020.
  • The plan highlights 20 targets set by the retailer covering products, community work, and employees with a total investment of about GBP 1 billion.
  • As part of the plan, the retailer also plans to double the sales of food sourced through British suppliers and increase sales of Fair Trade products.
• At the event, Sainsbury's also announced the launch of a traditional Scottish bakery range, including pineapple tarts and coffee buns, across its 60 stores in Scotland.
• The retailer currently sources GBP 600 million worth of products from 140 Scottish suppliers and stocks approximately 1,500 Scottish lines.

Target Corp. will be the sole operator to use the Target brand name and rights in Canada starting on January 31, 2013.  The U.S. retailers and Fairweather Ltd., International Clothiers Inc., and Les Ailes De La Mode Incorporees, have come to an agreement with terms yet to be disclosed. Prior to this agreement, the retailers were set to go on trial on November 2012.  Target Corp.’s first Canadian stores are to open starting March or April 2013.  

Target Canada announced it will operate its pharmacies on a franchise model. The retailer indicated it will have pharmacies in as many of its locations as possible.  Target will begin its pharmacist franchise owner search in March 2012, in preparation for its first store openings in March or April 2013. 

Target Canada also announced that the prescription files at Zellers stores will remain with Zellers and not be sold.  This is in contrast to Target’s earlier announcement that they would sell the files once stores closed for remodeling.  

Tesco has expanded its ChokaBlok ice-cream venture brand into confectionery, launching a range of Easter Eggs. The Easter Egg range comprises four SKUs, three of which are modelled the ChokaBlok ice-cream flavours. According to the retailer, the ChokaBlok range will be extended into additional confectionery categories, with ChokaBlok chocolate bars said to be “coming soon.” 

Tesco has decided to stop displaying carbon footprint labels on its products stating that the cost and time involved exceed the benefits.

• Tesco started including the carbon reduction logo on its packaging in 2006 and, to date, has 500 products displaying the information.
• Tesco stated that it is still committed to move towards zero emissions targets by 2020.

Tesco has kicked off a promotion offering shoppers petrol coupons, effective 30 January 2012.

• Shoppers will be entitled to one Petrol Coupon for spending GBP 60 on groceries in store or online, thus enabling them save 10 pence per litre on fuel.
• The promotion will be complemented by in-store promotions, and television and press advertising.
• The coupon will not be valid for Pay at Pump transactions.
• In addition products such as infant milk formulae, tobacco products, fuel, prescription medicines, cafe, E-Top up, opticians, travel money, insurance, gift cards, and delivery charges will not count towards the GBP 60.

 

 

 

According to Marketing Week, in a move to bolster its Clubcard loyalty scheme, Tesco has partnered Virgin Atlantic to enable shoppers exchange Clubcard points for Flying Club miles.

• Under the terms, shoppers will be able to earn 2.5 miles per GBP 1 spent in-store, online at Tesco Direct or Tesco.com, or on buying fuel from Tesco Fuel.
• The points will be redeemable online at a microsite for Virgin Atlantic's Flying Club.
• However, the clubcard points will not be available for products such as tobacco, lottery tickets, infant formula milk, Esso fuel, in-store concessions and some Tesco bank products.
• The agreement expands the existing partnership of Tesco with British Airways and Iberia for the Avios loyalty programme. Under the partnership, Avios enables shoppers to redeem 600 Avios points for GBP 2.50 worth of Clubcard vouchers.

Tesco has started to create more procurement jobs to maximize buying effectiveness in Central European and UK businesses.

• The retailer has placed advertisements for eight roles across functions such as IT, professional services, marketing, and energy.
• Odette Beattie, Manager, Resourcing - Corporate Purchasing and Marketing at Tesco stated that the retailer is looking for dedicated purchasers to leverage the buying power of both the UK and Central European operations.

X5 plans to invest USD 2 billion into the acquisition and construction of new distribution centers (DC) over the next five years, up until 2017. This investment will add over 1 million square meters of space.

•    In the first phase, X5 will build 10-12 DCs with an area of 50,000 square meters each in Kazan, Novosibirsk, Yekaterinburg, and Krasnodar.
•    The retailer is seeking partners, who will be chosen through tenders, to build the warehouses.
•    As of September 30th 2011, X5 operated 29 DCs with a total area of 513,000 square meters.