News And Events

DAIRY FARM makes painful progress in H1

Dairy Farm continues to be plagued by margin pressures in the food division despite solid sales growth during the first half ended 30 June. Total sales for the six-month period excluding contributions from recent grocery chain acquisitions - Yonghui and San Miu - rose 3% to USD6.5 billion. Underlying net profit plummeted 14% to USD193 million, reflecting a weaker operational performance, which was partially offset by Yonghui's contribution.

Discounters prepare to reshape US retail

Since the announcement of US expansion by Aldi and Lidl there’s been no shortage of headlines about a “German Invasion” of the supermarket industry, “Defending the retail homeland” and the “firing the first salvo” in what is seen as a “long and bloody war” with “casualties littering the battlefield”.

Personally, I’m a great fan of combat metaphors and I admit to using them liberally to describe hyper-competitive retail markets throughout the US. These may indeed be good descriptors for Aldi and Lidl.

Past as prologue?

Store closings are latest 'tool' in GAP brand building

Gap has added its name to the ever-growing list of US apparel specialty retailers closing doors by the dozen. According to a management statement:"Gap plans to right-size its specialty store fleet and streamline its headquarter workforce, primarily in North America, as part of the comprehensive effort to deliver more consistent and compelling product collections and engage customers across all channels."

Amazon paves the way for grocery private labels

Late last week, news broke that Amazon.com is to extend its Elements premium private label range. This is likely to include items such as milk, cereal and baby food as well as household cleaning items. Amazon has sought trademark protection for more than two dozen categories and has already approached some private label food manufacturers seeking partners, according to reports. The potential product range shows a focus on ambient goods - for obvious logistical reasons.

Some lessons to learn

REWE GROUP forms Alnatura pact for Austria

Rewe Group's Austrian supermarket chains Billa and Merkur are to list 300-430 organic SKUs from German organic specialist Alnatura from mid-July. Alnatura, aside from operating its own outlets, is best known for its presence at dm drugstores - a relationship that is now being put to the test with dm launching its own organic label. This is clearly prompting Alnatura to actively seek new customers.

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