Ica's results are better than expected
Good results in ICA's Q2 sends the market capitalization up by 8 per cent. Online is growing strongly from a low level and is a focus area for ICA in the years to come.
Food News
Online grocery in Asia to grow 198% by 2023
Online grocery in Asia is developing at a rapid pace, with the market set to grow from its current value of US$99bn to US$ 295bn by 2023, according to the latest forecasts from international researcher IGD Asia.
Expects excessive growth in online grocery shopping
Those who reject online shopping in groceries as a flop will get a big surprise in a few years, predicts IGD, a British nonprofit analysis institute. Three key global markets will see 212% combined online growth over the next five years, according to IGD.
Coop Sweden grows stronger
The Swedish Competition Authority has approved Coop’s purchase of Netto's Swedish stores from the Danish retail giant Salling Group.
Tesco scales down in Poland
Britain’s biggest supermarket chain Tesco has announced the closure of four hypermarkets and a distribution center in Poland.
Aldi Süd to open its first store in China
Aldi Süd has revealed it will open stores in China, with the first one opening on the 7 June in Shanghai, writes IGD.
Aldi Denmark loses money at frightening speed
The money is pouring out of the Danish Aldi stores. Aldi Denmark’s results for 2018 are characterized by declining revenue and a posted loss of DKK 381 million.
Waitrose plans to triple Online Operation
Less than three months after revealing the end of its partnership with Ocado, Waitrose has outlined plans to triple the size of its online grocery operation over the next three years. The upmarket grocer ambitions are to create a £1 billion operation online.
Salling Group sells 163 Netto stores
The Danish supermarket giant Salling Group withdraws from Sweden, which never became a success for the group.
CMA blocks Sainsburys & Asda merger
Britain’s competition regulator has blocked Sainsbury’s proposed 7.3-billion-pound takeover of Walmart owned Asda. It is not unexpected, but nonetheless a huge blow to the supermarket groups who wanted to combine to overtake market leader Tesco.
ICA will halve food waste by 2025
ICA, the Swedish grocery giant with more than 50% market share in its home market, adopts new targets for reduced food waste.
Food companies threatened
Food companies in nine European countries have received threat letters: Transfer 300,000 euros or get your goods poisoned.
Family drama in Aldi
An old family feud in the German Albrecht family (Aldi) threatens after a testament from the deceased Cäcilie Albrecht excludes Babette Albrecht from any influence in the retail giant valued US$ 40 billion.
Scandinavian takes top position in Russian grocery chain
Danish Rud Pedersen is now CFO in one of Russia's largest supermarket chains; Lenta. There are few, if any, Scandinavians who reach the top in Russian business. This is perhaps an opportunity for Scandinavian suppliers?
Dairy Farm Hypermarkets are struggling
Dairy Farm results in 2018 shows that Health and Beauty segment is strong, but the food business is declining.
Spanish Mercadona and Zara do well
Two of Spain's best-known high street names, both still largely family owned, announced record profits for 2018 last week.
WM Morrison from survival to profit
Morrisons, Britain’s fourth largest supermarket group reported a rise in quarterly underlying sales on 12 March, though its rate of growth slowed somewhat from a warm weather boost in the second quarter.
Costco grows in both channels
Costco Wholesale Corp speeded past analysts’ estimates for quarterly profit on 7 March as the warehouse club operator’s margins were lifted by lower gas prices and a shift to lower-cost sourcing, sending its shares up 5 percent. The company also said pricing pressure on its groceries business had decreased, adding to the optimistic sentiment.
No Asda and Sainsburys deal, says CMA
The proposed £12 billion merger of Sainsbury’s (J Sainsbury plc), and Asda (Walmart) could lead to higher prices, a poorer shopping experience and reductions in the range and quality of products offered, fears The Competition & Markets Authority (CMA) in UK.
Walmarts Best 4th quarter in ten years
Walmart Inc posted its strongest holiday quarter in ten years, improved by higher grocery and e-commerce sales. Online sales jumped 43 percent, helped in particular by the expansion of Walmart’s online grocery pickup program to more than 2,100 stores.
German Lidl is investing heavily in Denmark
Lidl tried to enter Norway several years ago with a likely, but undisclosed loss of several hundred million NOK. In Denmark, however, Lidl succeeds very well.
Strong development in ICA
The Swedish giant ICA continues to deliver. The chain takes market shares from Coop and Axfood, and profitability is good, even though earnings per share is down from last year.
Ocado plans one-hour delivery
Ocado’s new service Ocado Zoom is set to be tested in West London in March. It will offer customers on-demand “small batch delivery” in one hour or less! One hour, of course, is a formidable logistical challenge.
Russian hard discounter fights Aldi and Lidl
Hard discounting is founded in Germany, by Aldi and Lidl in a poor and degraded country after World war II. The Russian discounter, Mere, now tries in the lion's cave. Can it work?
Tesco cost cuts 15000 jobs
Britain’s biggest retailer may cut 15.000 jobs in its UK stores and head office with its latest move to simplify operations and achieve targeted cost savings.
Retail cooperatives loose market shares
Grocery retail cooperatives are losing market share in Europe. They will account for 27% of retail sales in 2024, a 3-percentage point drop versus 2014, according to LZ Retailytics.
Chinese e-tailer Alibaba tightens grip over 600 million lives
China's e-commerce giant, Alibaba Group Holding, is quietly building a whole economic sphere based on the smartphone payments and services it provides.
British economy hit by Brexit
Negotiations between the EU and the UK on Brexit are confusing. However, there is no doubt that the uncertain situation is damaging the UK economy. Now several top executives in the grocery industry warn that the uncertainty about Brexit can create chaos.
Sainsburys Worst Christmas sales ever
Sainsbury’s says sales dropped during Christmas after general merchandise trading was hit by consumer caution and rigid competition from hard discounters like Lidl and Aldi.
Fætter BR and Toys “R” Us employees are popular
Grocery stores in Denmark lacks employees and calls on redundant employees from Fætter BR and Toys "R" Us to seek positions in grocery retailing.
No Santa Claus in Sweden
Norwegian merchants want less border trade, but do not receive any Christmas presents from Swedish investors. On the contrary, in Sweden they plan for more and more cross border trade.
ICA invests 4 billion in 2019
The Swedish grocery giant, ICA, will increase total investments by 500 million SEK next year, to 4 billion SEK, compared to 2018.
Aldi Denmark has received 2.7 billion DKK in six years
Aldi Nord continues capital injection to Aldi Denmark with a new supply of 200 million DKK in November. So far this year the Danish daughter has been given 400 million.
Global online grocery up 15 percent in two years
Global online purchasing of packaged and fresh groceries has surged by 15 percent in the past two years, leading to an estimated increase of US$ 70 billion in online sales of FMCG (Fast Moving Consumer Goods).
The grocery industry is increasingly politicized
Power struggle between chains and suppliers is no new phenomenon, but it's growing. Therefore, the business is more politicized throughout the EU than just a few years back. In Denmark, the retailers fight all they can against new EU rules that, according to their view, threatens the free right of negotiation between seller and buyer.
Netto dreams of the Løve effect
The Danish Netto stores have been known to be ugly, boring and outdated, but cheap. Cheap is no longer enough for the Danish consumer.
Good top line growth weak bottom line for Sainsbury's
Interim results on Thursday 11 November show sales across the Sainsbury group rose 3.1 per cent to £15.1 billion in the 28 weeks to 23 September 2018.
Strong report by Ica
The Swedish grocery giant, Ica, delivers a report where both earnings and revenues surprised positively in third quarter, ending 31. September.
Smaller formats and proximity shopping are ultramodern
LZ Retailytics forecasts that the smaller the format, the faster it will grow. Thus, small minimarkets are set to grow faster than large minimarkets, followed by small supermarkets, medium sized supermarkets and large supermarkets.
Sears is bankrupt
The American icon in retailing, Sears, is (almost) bankrupt after 125 years of business. It is e-commerce that has broken the company.
Tesco calls for Amazon tax
Tesco’s chief executive, Dave Lewis, has called for the introduction of an “Amazon tax” on online sales to prevent more high street stores going bust.
ICA declares war on plastic
ICA, the Swedish grocery giant, has declared war on plastics. ICA phases out all plastic disposables throughout the group by 2020!
Metro AG sells Real hypermarkets
“Our decision to put Real for sale is met with interest,” so we are optimistic, says CEO Olaf Koch. Metro announced late last week that it wants to sell Real, with 282 stores and 34,000 staff, to focus on its wholesale business.
Tesco takes on Aldi and Lidl with new Jack's chain
The British supermarket chain has for long been haunted by German low-price warriors, Lidl and Aldi in their home market. Hence CEO Dave Lewis opened the new low-price chain, Jack’s, in Chatteris on Wednesday. Lewis claims it will be the cheapest in town.
Nestlé in political trouble at The Philippines
The global food giant, Nestlé, threatens the authorities to withdraw from The Philippines if the company does not receive tax privileges.
Coca Cola invests in coffee
Coca-Cola Co has agreed to buy coffee chain Costa for $5.1 billion including debt to extend its push into healthier drinks.
Huge investment awaits Aldi in Denmark
Aldi Denmark has been in Denmark for years but is still losing money every year. That, however, doesn’t stop the discount giant from having offensive investment plans, building new stores this year and further ahead.
2 billion metric tons of food are wasted
Up to a third of fresh food grown on British farms — including 2,500 metric tons of Scottish strawberries is rejected each year because its appearance does not meet standards expected by supermarket chains and the EU.
Walmart beat expectations
The world’s biggest retailer, Walmart, beat analysts’ expectations, sending shares rising with more than 10 percent on New York Stock Exchange (Thursday morning 16 August). If the gains hold, the stock is on course for its biggest intraday increase since 2008.
Tesco plans hard discount chain
Tesco is preparing to launch a new discount chain as early as September, as the supermarket ramps up its battle with the hard discounters Aldi and Lidl, writes The Guardian.
Walmart out of Japan
US giant, Walmart, is not satisfied with its Japanese business and is selling its wholly owned grocery chain; Seiuy. Out of Brazil, out of Great Britain and maybe out of Japan. Globalization is not easy, not even for Walmart.
Carrefour in alliance with Tesco!
British Tesco broadcasted a "long-term strategic alliance” with the French supermarket giant Carrefour this week! That is shocking news for the entire industry, retailers, suppliers and analysts.
Unfair trading methods exists, but are not serious
There are unfair trading methods in the Swedish food market, but there is no clear evidence that they occur to such an extent that it seriously distorts competition in the food market, concludes the Swedish Competition Authority in its new report "Competition in the Food Chain".
Fix the food, and we fix the planet
Professor Johan Rockström in this chronicle shares views of vital interest globally and locally. What is most important for the world economy and future welfare; that we avoid steel tariffs or that we have a sugar tax, he asks?
Sainsburys & Asda in political calamity
The CEOs of Sainsbury’s and Asda are set to be grilled by MPs on questions regarding the grocers’ proposed merger, writes Elias Jahshan.
Walmart out of Brazil
Walmart Inc said on Monday that it has sold an 80 percent stake in its Brazilian operations to private equity firm Advent International. For Walmart, Brazil has been a nightmare.
Half of Walmart's workforce are parttime workers
Part-time workers account for half of Walmart’s workforce, up from 20 percent in 2005, according to Reuters.
Micro trading and experiences shape the future's consumption
Despite increased e-commerce, future consumers will continue to trade in physical stores. But in the stores, they want to see more “happenings” and unique micro produced goods and services.
Consolidation is the name of the game
The Schwarz Gruppen, which owns Lidl and Kaufland, exceeded 106 billion euro in turnover in 2017, and is by far the biggest player on the European market for grocery retailers.
ICA invests 600 million SEK on e commerce
Ica Sweden will invest approximately 600 million SEK in a fully automated e-commerce solution from UK Ocado in 2018-2022.
Sainsbury's merges with Walmart's Asda
Sainsbury’s (SBRY.L) and Asda, the UK arm of Walmart (WMT.N), confirmed on Monday they had agreed a 13.3 billion pounds merger to create Britain’s biggest supermarket group by market share, surpassing current leader Tesco (TSCO.L).
Axfood operating profit beats forecasts
The Swedish grocery retailer beats forecasts in Q1 according to Reuters. CEO in Axfood, Klas Balkow, is also very satisfied, not least because Axfood takes market shares, beyond doubt, one of the most important performance indicators in food retailing.
Lithuanian Competition Authority stops Rimi Baltics acquisition of UAB Palink
Doubts the buyers' competitiveness and long-term commitment to each store.
The Swedish government will imprison food cheaters
Karin Brynell, CEO for the trade association Svensk Dagligvarehandel, supports a proposal for imprisonment for food cheating, but she believes that food control should have more resources. A new law will have minimal effect if it is not followed up by more resources, she believes.
European supermarkets boycott Nestle
Nestle, which in February reported its weakest annual sales growth in at least two decades, is under heavy shareholder pressure to boost sales and profit margins.
Alibaba bets billions on Ele me
Chinese e-commerce giant Alibaba Group Holding Ltd said second of April it would buy the remaining shares of Ele.me, a major platform in China’s food delivery market, according to Reuters.
Shares in French Casino rise on an agreement with Amazon
Shares in the French retailer Casino surged Tuesday 27 March 27 after a deal with the internet giant Amazon was known.
Strong European Grocery Growth
The European grocery retail market will add €377.6 billion in sales to reach €2,289 billion by 2022, with growth in the region driven by the dynamic economies of Central and Eastern Europe, according to new forecasts from international grocery research organization, IGD.
Aldi breaks with fixed low prices
For the first time in 40 years, customers can now find offers in Aldi on selected days in Denmark, according to Dansk Handelsblad.
Eight stores to visit in the Nordics in 2018
Harriet Cohen, Senior Retail Analyst leads IGD’s research in the Nordics. Here she highlights eight of the best stores to visit across Oslo, Stockholm, Copenhagen and Helsinki.
NorgesGruppen wants to take more responsibility for public health
"Our top boss is the customers. They want a slightly healthier and slightly greener shopping cart. We will make that happen," promises CEO Runar Hollevik of NorgesGruppen.
Import protection and its consequences
Do we know enough about the import protection and its consequences? Enough to say that we protect not only Norwegian industry but also Norwegian consumer interests?
Retailers need to recalibrate their approach to reach millennials
Retailers should re-assess their business strategy and technological prowess by benchmarking their store layouts, systems and processes against shopping preferences of millennials and post-millennials, who are going to redefine the future of retail, argues GlobalData.
Ingvar Kamprad passed away Sunday 28 January
Ingvard Kamprad, founder of IKEA and Sweden's most famous entrepreneur died Sunday 91 years old. "I started making furniture because I was too lazy to become a farmer," he said to this writer some years ago, and he meant it.
Norway is a smuggler's paradise
The Norwegian customs made record seizure of smuggler beer in 2017. It worries the beer industry, and it should worry the government.
Rema 1000 overtakes Lego
For the first time, Rema 1000 takes the position as the best-known brand in Denmark, according to YouGov BrandIndex.
Big risk for a price war
2017 has been a busy year for food & grocery – we have seen mass consolidation, the continuation of supermarket diversification into new areas, and a change in consumer eating and spending habits, writes GlobalData.
Homemade food popular again
Homemade food has been losing ground in USA for years. The trend seems to turn now. That is good news for food retailers.
Is Amazon's next target target?
It seems unbelievable, writes bloomberg.com, but a well-respected Wall Street analyst has suggested that Amazon's next brick and mortar acquisition could be Target.
Swedish ICA has record online sales and trust it will increase
During the Ica groups Capital Markets Day in Stockholm recently, the board of directors made it clear that ICA is going to invest heavily in e-commerce in the coming years.
Aldi number 2 in Europe
Aldi Süd and Aldi Nord will be the second largest supermarket player in Europe in 2018. In 2016, Aldi was number five only.
The search for the right online grocery business model
Online grocery business is bad right now, with negative margins, but “everybody” is testing one or more models.
Asia continues to dominate growth in global grocery retailing
The global grocery retail market will add $2.7 trillion in sales to 2022, with growth in the next five years dominated by Asia, according to new forecasts released today by international grocery research organisation IGD.
Brick and mortar is still important for retail
Online trade in retailing is growing fast, but in retailing brick and mortar stores are by no means outdated.
Is the party over for ready-made dinner solutions?
The Swedish "dinner box" has been at the forefront of e-commerce with food in Sweden, but now the Swedish taste seems to have changed. "The market for ready-made dinner solutions has slowed down," says Jonas Karlén, CEO of Linas matkasse (Lina’s food box).
IGD forecast strong online grocery trade in Asia
The international Think Tank IGD expects a growth explosion in grocery e-commerce in Asia the coming three to five years.
Danish Coop combat headwinds
Last year, Coop announced plans for more unmanned stores, where customers themselves must scan and pay for the goods. But the message did not fall in good ground among the Danes on social media, Metroxpress Copenhagen articulates
ICA buys IKI
Swedish ICA buys Lithuanian grocery chain IKI. The purchase price is 213 million euro, which corresponds to approximately 2.2 billion Swedish kronor.
Sainsburys slashes 2000 jobs
The British supermarket chain Sainsbury’s is axing 2,000 store and back office roles to cut £500 million(!) in costs. The big question is if cost cutting is enough, or if the whole business model must be changed?
Amazon deal will revolutionise the online food retail sector
The recent proliferation of acquisitions and partnerships in the global food retail sector will define the future of grocery retail says GlobalData, a recognized leader in providing business information and analytics.
Food industry has to change the mindset
The food industry has to change its mindset on health and sustainability, says Danone boss, Emmanuel Faber, to just-food.com.
Wal-Mart expects 40 percent growth in online sales
Wal-Mart Stores Inc. on expects a 40 percent rise in U.S. online sales next year as it ramps up competition with Amazon. The news pushed the shares of the world’s biggest brick-and-mortar retailer to the highest in more than two years, writes Reuters.
Safeway goes green
Safeway has enrolled 11 of its stores in Manomet's Grocery Stewardship Certification (GSC) program, making them the first stores in California to pilot the program.
Great skepticism against industrial food
Four out of ten Norwegian consumers believe industrialized food is unhealthy, according to a new survey.
Lidl has become a major threat to Ica!
The Swedish food giants Ica and Axfood are threatened by the German super discounter Lidl, and by the long-time underdog in the Swedish market; Coop!
Migros opens pick-up stations to competitor
Swiss retailer Migros has started to offer customers of www.brack.ch the opportunity to get their orders delivered to Migros’ PickMup locations.
Nestlé sets profit margin target of 18,5 percent!
Nestlé set a profit margin target for the first time on 2017-09-26, to satisfy Third Point, a very activist investor in Nestlé.
Lacks a good recipe for online grocery shopping
Things must change if anyone intends to make large profits from the online grocery shopping market, writes Professor Frode Steen and Assistant Professor Simen Aardal Ulsaker in a chronicle published in the Norwegian financial daily, Dagens Næringsliv.
Lidl opens new green store in Sweden
Lidl is to open a new concept store in Sigtuna, north of Stockholm, early 2019. It will be a green store with sun-panels, eco-zones and chargers for electric cars and bicycles.
East European shoppers are cheated with inferior products
European commissioner says firms ‘misled’ consumers by wrapping worse versions of well-known goods in same packaging, writes The Guardian.