RETAIL NEWS FLASH 16th September 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 13 Strategy .............................................................................................................................. 17
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Sales & Marketing MORRISONS targets GBP500 million online sales 13 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85855?WTrss_f=Daily%20News%20Summary&WTrs s_a=MORRISONS%2Btargets%2BGBP500%2Bmillion%2Bonline%2Bsales&WTrss_ev=a Morrisons is targeting sales of GBP500 million (USD773 million) through its online food arm, Retail Week reports. The service is set to launch in January 2014. This comes after Morrisons identified its own customers were spending approximately GBP500 million (USD773 million) with other supermarket online grocery arms. CEO Dalton Philips said: “It’s an offensive and defensive plan. We will shore up parts of our heartland and attack white space. We have bought GBP500 million (USD773 million) of capacity with our first customer fulfilment centre in Dordon.”
Toys R Us Reveals Key 2013 Holiday Initiatives 13 September, 2013 |Kantar Retail http://www.kantarretailiq.com/ContentIndex/PublicNewsDisplay.aspx?id=596227&key=QVI3xs8I F%2bIxE%2fPIX%2ffTAg%3d%3d At a special preview event for business retail reporters, Toys R Us executives shared the company’s key initiatives for the upcoming 2013 holiday season. These initiatives are as follows: Reinventing and Evolving the Toy Box Beginning in October, Toys R Us stores will reduce the space for items with underperforming sales so that it can focus on enhancing product categories that have seen sales grown over the past few years (e.g., education, tablets, and construction). Exclusive products that Richard Barry, Chief Merchandising Officer of Toys R Us, spoke to included Cra-Z-Loom™ from Cra-Z-Art®, Crazy Cart™ from Razor™, Sew Cool Sewing Machine from Spin Master™, and The Zelfs™ Design Your Zelf from Moose Toys. Becoming THE Education Destination Based on sales growth in its Learning segment in 2012, Toys R Us has increased space allocated to learning merchandise via an Imaginarium shop dedicated to new education products that include Microscopes and Telescopes from Edu Science, Language Learning Programs from Little Pim®, Musical Instrument sets from Melissa and Doug®, and private brand learning products from Toys R Us.
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Continuing to Capitalize on Construction Toys R Us will install a “Shop within a Store” concept in 300 of its stores to showcase major construction brands, including LEGO® and Mega® Bloks. Approximately 50 feet will be added for this space. Additionally, Toys R Us will feature about 70 LEGO exclusives during the holiday season. Creating an Experiential Tablet Hub In-Store for Kids and Families Based on softness in video game software and hardware and eMarketer’s projected double digit growth in use of tablets among children ages 0-11, Toys R Us will install a 32-foot shop showcasing 25 tablets. Kids and parents will have the option to test the tablets. This new section is expected in most Toys R Us locations by October. Enhancing Omnichannel Offerings Fred Argir, Chief Digital Officer at Toys R Us, highlighted omnichannel offerings that are available to shoppers this 2013 holiday season, including: •
“Buy Online, Pickup In Store” service where products ordered at Toysrus.com are ready for pickup in less than an hour
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“Ship to Store” service improved from 7-14 days to 5-10 days
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A secondary in-store pick-up location with Wish List kiosks and check-in technology available later this fall
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“Ready for Pickup” emails that include a map of pickup location within the pickup store
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New mobile capabilities will be shared later this year.
Incentives to shop Toys R Us Early in Holiday Season These include 10% back for Rewards R Us members, free layaway, extended return policy, expanded Price Match guarantee and other pricing initiatives.
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AMAZON quietly enters new categories 11 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85802?WTrss_f=Daily%20News%20Summary&WTrs s_a=AMAZON%2Bquietly%2Benters%2Bnew%2Bcategories&WTrss_ev=a US-based Amazon is continuing to expand its product range in line with its goal to offer ‘Earth’s Biggest Selection’. It has recently added categories including fresh flowers and home automation to its amazon.com site. Amazon is offering a limited selection of flowers under the Grocery category, with free shipping to US Prime members. Previously this category had only been populated by Marketplace sellers. Additionally, Amazon’s home automation category has been introduced to group together devices that can be remotely controlled within the home, such as entertainment and security systems. Amazon’s Director of Tools & Home Improvement told CE Pro that home automation was increasing in popularity and that Amazon had a team of staff dedicated to researching the category and identifying emerging trends. Finally, Amazon has now added a link to its Amazon Fresh grocery service direct from amazon.com for the first time, indicating its likely expansion plans. Although the service is currently available only in Seattle and Los Angeles, it is anticipated that this could be rolled out to many more urban areas in the coming year.
MIGROS plans 20-30 new Alnatura stores 10 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85796?WTrss_f=Daily%20News%20Summary&WTrs s_a=MIGROS%2Bplans%2B20-30%2Bnew%2BAlnatura%2Bstores&WTrss_ev=a Swiss co-operative Migros plans to open between 20-30 new Alnatura-Migros organic food stores, CEO Herbert Bolliger has told NZZ am Sonntag. The outlets will be mainly located in larger Swiss cities such as Zurich or Geneva. However, Bolliger did not specify a time frame for the openings. The product range of the Alnatura-Migros stores will consist of around 5,000 items including Alnatura private labels, Migros organic private labels and further assortments such as health & beauty products. In addition, parts of the Alnatura product range will be integrated into the Migros outlets. These have already been tested in three Migros stores in Zurich. At the end of August 2012, Migros established itsnew organic grocery format with help of German organic supermarket chain Alnatura. The pilot store is located in Zurich-Höngg. Bolliger stressed that he still saw great potential for growth of organic products. In 2012, sales of organic products at Migros grew by almost 9% to CHF474 million (USD505.6 million).
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For the 2013 financial year, Bolliger forecasts a sales increase of approximately 5% for the entire Migros Group. However, he added this could be partly explained by the acquisition of Tegut in Germany. Sales of Migros’ core business in Switzerland will be only slightly above the previous year, according to Bolliger.
AHOLD Albert Heijn begins cutting prices 09 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85768?WTrss_f=Daily%20News%20Summary&WTrs s_a=AHOLD%2BAlbert%2BHeijn%2Bbegins%2Bcutting%2Bprices&WTrss_ev=a Ahold’s domestic Albert Heijn operation has permanently lowered prices on thousands of products, Algemeen Dagblad reports. This includes prices of A-Brands such as Lipton, Douwe Egberts, Honig and Koopmans. According to the newspaper, Albert Heijn is especially keen to regain customers that have switched to Schwarz Group’s discount store banner Lidl. According to the Dutch grocer’s COO Sander van der Laan, the move is to improve shoppers’ price perception. In 2003, Albert Heijn began a price war in the Netherlands grocery retail sector that lasted for several years. Since then, the market leader has undertaken several rounds of price cuts with competitors following suit. The current round of price reductions follows a period of gradually rising grocery prices.
JCPENNEY could drop Martha Stewart 09 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85752?WTrss_f=Daily%20News%20Summary&WTrs s_a=JCPENNEY%2Bcould%2Bdrop%2BMartha%2BStewart&WTrss_ev=a JCPenney may discontinue its Martha Stewart range. CEO Mike Ullman has decided to do away with Stewart's home goods line after poor sales, reports the New York Post. The decision follows a long courtroom battle with Macy's about the US department store chain’s partnership with Stewart. "Mike said her *Stewart’s+ designs aren't that great," an insider close to the company was quoted as saying by the paper, "He says they're not selling, and they're nothing that your normal Joe Schmoe can't come up with." However, Martha Stewart Living later issued a statement denying there was any change in the relationship. "J.C. Penney remains one of our many retail partners," the company said, "Our agreement with them is in force, and we have no intention of ending it."
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TARGET details 23 Canadian opening dates 09 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85754?WTrss_f=Daily%20News%20Summary&WTrs s_a=TARGET%2Bdetails%2B23%2BCanadian%2Bopening%2Bdates&WTrss_ev=a Target has announced that 14 new Canadian stores will open on 17 September. A further nine will open on 18 October. Target currently has 68 outlets open across Canada and plans a total of 124 locations by the end of 2013. The 17 September openings include seven outlets in Quebec, four in Ontario and three in Nova Scotia. The Quebec and Nova Scotia locations will be Target’s first stores in those provinces. All the outlets openings on 18 October are in Quebec.
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Finance CARREFOUR Brazilian IPO reportedly back on the table 13 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85848?WTrss_f=Daily%20News%20Summary&WTrs s_a=CARREFOUR%2BBrazilian%2BIPO%2Breportedly%2Bback%2Bon%2Bthe%2Btable&WTrss_ev= a Carrefour is still considering an IPO for its Brazilian operation, Valor Economico reports. According to the newspaper, the idea has been debated at the highest level of Carrefour France. CEO Georges Plassat is to use his current visit in Brazil to assess the opportunities, it adds. The rumour of IPO of Carrefour’s Brazilian assets has been ongoing for a year now, and has widened to include its Chinese operations over the past months. Over the past year, Carrefour has divested or spun off a series of countries to generate hard cash to be reinvested not only in Europe but also in key countries such as Brazil and China.
Next's half year profits up 8.2% 12 September, 2013 |The Retail Bulletin http://www.theretailbulletin.com/news/nexts_half_year_profits_up_82_12-09-13/ Fashion and homewares retailer Next increased its pre-tax profits by 8.2% to £271.8 million in six months to 27 July as the retailer reduced its markdowns by 13%. During the half year, Next’s total sales increased by 2.2% to £1.68 billion while operating profit rose by 7.2% to £285 million. In a trading statement issued today, the group said the difference in profit and sales growth was largely down the differing performance of its full price business and markdown sales. While Next brand full price sales were up 3.9%, the retailer went into its sales with 18% less stock than last year and consequently markdown sales were 13% down on the previous year. Although revenue in Next’s high streets shops dipped by 0.9% to £1 billion, Next Directory, which includes online and catalogue sales, saw its revenue increase by 8.3% to £597.6 million. Profits at the high street stores edged up 1.3% to £124.3 million. Next directory profits climbed by 13.4% to £156.1 million.
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Next continued to add new space to its store portfolio during the period and increased its total trading space by 145,000 square feet. The retailer said the new space was highly profitable, making 22% net margins, before central overheads. The retailer has identified 1.4 million square feet of additional space that it would like to open over the next five years. It currently plans to open around 300,000 sq ft during this financial year, another 450,000 sq ft in the year ending January 2015, and the same again in the following year. Next said its international sales had taken a step forward in the last six months and contributed 2.9% to the growth of Next Directory. Therefore, the retailer has upwardly revised its estimate for full year international online sales from £75 million to £90 million. Next chief executive Lord Wolfson of Aspley Guise said: "The group has made good progress in the first half, delivering profits at the upper end of our expectations. Looking ahead the economy looks set to improve moderately, albeit at a slow pace and with the risk that credit easing may not translate into growth in real earnings. We remain confident that we can deliver growth in sales, profits and earnings per share for the full year."
Kroger Q2 Comps Up 3.3% 12 September, 2013 |Supermarket News http://supermarketnews.com/retail-amp-financial/kroger-q2-comps-33 CINCINNATI — Kroger Co. on Thursday posted identical-store sales growth of 3.3%, excluding fuel, for the second quarter, and raised its ID-store sales target for the year. “Kroger's strong second quarter results have us on target to deliver the earnings per share growth we promised for the year,” said David B. Dillon, chairman and chief executive officer. “Kroger's second quarter operating performance and financial results show that the common thread in our story is consistency. “Every supermarket division and every department had positive ID sales. We controlled costs throughout the business.” Rodney McMullen, Kroger’s president and chief operating officer, said the company sees consumer confidence improving “at a slow but steady pace.” “Overall, we would characterize the economy as continuing to improve but fragile,” he said. McMullen said that Kroger grew both the number of loyal households that shop at its stores and the number of total households during the second quarter.
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“Overall, customers continued to visit our stores more frequently, purchase fewer items per trip and buy more on a monthly basis,” he said, noting that total units sold were up compared with last year. Dillon added, “There's lots of categories and items and areas that you would say are more discretionary items that people are buying more of today than they were before.” Net income for the quarter was up 13.6%, to $317 million, and sales rose 4.6%, to $22.7 billion. Kroger estimated the rate of product cost inflation at 1.6%, excluding fuel and pharmacy. Based on the second quarter results, the company maintained its net earnings guidance for the year to a range of $2.73 to $2.80 per diluted share. Kroger raised its guidance for ID sales growth, excluding fuel, to approximately 3% to 3.5% for fiscal 2013, vs. previous guidance of 2.5% to 3.5%. Asked by an analyst about the potential for expanding its e-commerce grocery offering, Dillon said the company will take a closer look at how Harris Teeter is handling online ordering with store pickup once Kroger completes its previously announced acquisition of that chain, expected later this year. “We continue to experiment with it, in Denver, Colo., and we have for the last several years,” Dillon said. “We have a few customers that are very loyal to it, but it's modestly growing and it's modestly grown for a long period of time. We think, over time, it'll just be one part of the way a customer shops, along with physical assets, too.” He said the company wants to examine Harris Teeter’s model more closely “to make sure we understand that, and what pieces of that make sense to use in other places.” In response to another question, McMullen said the company’s Fred Meyer supercenter division, based in Portland, Ore., has been “having a tremendous amount of success working deeper with all our divisions across the company” it terms of selecting items to add to Kroger stores. “We’re starting to redo some of our marketplace stores with categories different than what we initially did, and we’re very pleased with the success there,” he said.
MORRISONS sales flat in H1, profits fall 12 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85819?WTrss_f=Daily%20News%20Summary&WTrs s_a=MORRISONS%2Bsales%2Bflat%2Bin%2BH1%252c%2Bprofits%2Bfall&WTrss_ev=a Morrisons reported flat total turnover of GBP8.9 billion (USD13.8 billion) in the half-year to 4 August. Total store sales rose 0.8%, against a rise of 1.3% during the same period last year. Like-for-like sales fell 1.6%, compared to a drop of 0.9% last year. Profit before tax came in at GBP344 million (USD532 million), down from GBP440 million (USD680 million).
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The half saw Morrisons continue with its convenience store roll-out – with 33 M Local stores now trading. Morrisons remains on track to have 100 operating this year. The company’s online food proposition is also on schedule with planned launch in January 2014. In terms of Fresh Formats, this concept has now been rolled out to 169 outlets and will be available in 200 by year-end. Morrisons opened seven new supermarkets during the half including one replacement. It also relaunched 2,800 private label products and strengthened the management team. Morrisons has pledged to reduce commitment to new supermarket space, limiting expansion to around 350,000 square feet (32,500 square metres) annually from 2014/15 as it looks to focus on the convenience and online channels. As a result the company anticipates capital expenditure will reduce significantly in the financial year 2014/15 to around GBP850 million (USD1.3 billion), from GBP1.2 billion (USD1.9 billion) in 2013/14. Post 2014/15, the company expects capital expenditure to fall to an annual rate of around GBP650 million (USD1 billion). Dalton Philips, Chief Executive, said: “Our strategy for growth in convenience and online is now set. Today we are outlining our financial strategy, which will support our key financial objectives of growing underlying earnings, generating cash and delivering superior total shareholder returns.” He added: “We have also made significant progress in building our presence in the key growth channels of convenience and online. By the end of the year we will have 100 M local convenience stores, around half of which will be in London and the south-east, and we’ve secured a new distribution centre in Bury to support our convenience stores in the north. In parallel we’ve been working at pace on our online offer; the final pillar of our strategy. Morrisons.com will be making home deliveries of our great fresh food by the end of January 2014, supported through our longterm service agreement with Ocado.”
Costco Sales Up 6%, Pass $100B 05 September, 2013 |Supermarket News http://supermarketnews.com/membership-warehouse-clubs/costco-sales-6-pass-100b ISSAQUAH, Wash. — Costco Wholesale Corp. here said Thursday that sales for the recently ended fiscal year passed the $100 billion mark for the first time. For the 52-week fiscal year that ended Sept. 1, the company reported sales of $102.9 billion, an increase of 6% over the preceding year, which had one extra week. For the 16-week fourth quarter, sales were up 1%, to $31.8 billion, compared with the 17-week quarter of a year ago. Comparable-store sales were also up 6% for the year, and rose 5% for the fourth quarter. The company is scheduled to report its full results for the year on Oct. 9.
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In a prerecorded call describing sales for the full year, the fourth quarter, and the month of August, Jeff Elliot, assistant vice president of financial planning and investor relations, said comparable-store sales of food and sundries were up “in the mid-single digits” for the month of August, with minimal inflation. The strongest areas within food and sundries were candy, cooler products and frozen foods. Fresh foods, meanwhile, had positive comp-store sales “in the high single-digit range” for the month, he said, with the strongest results in service deli and produce. “Fresh foods experienced slight price inflation for the month compared to last year, basically similar as it has been running for the last several months,” he said. Regionally, Costco said it experience the best results in the Southeast, the Midwest, and Texas. “We suspect that California remains in line with the company average, which has been the case for several months,” said Charles Grom, an analyst with Sterne Agee, in a research note. International sales “continue to be strong in both Canada and Mexico,” he added.
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Technology FAST RETAILING Uniqlo introduces mobile app for US 13 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85834?WTrss_f=Daily%20News%20Summary&WTrs s_a=FAST%2BRETAILING%2BUniqlo%2Bintroduces%2Bmobile%2Bapp%2Bfor%2BUS&WTrss_ev=a Uniqlo is expanding its mobile footprint in a bid to increase US footfall, reports Mobile Commerce Daily. Its new app leverages image recognition to offer product and brand information. The image recognition component works by detecting logos, then playing video about the design behind a particular item. There is also a weekly favourites section where shoppers can view some of the retailer’s most popular lines. “As Uniqlo continues to expand within the US, it is important to be accessible to our customers,” said Hiroshi Nagai, Chief Marketing Officer and Fast Retailing Senior Vice President at Uniqlo USA. “The app gives us the opportunity to speak directly with the consumer so they will be more familiar with the brand and its US presence,” he said. The company does not currently offer transactional m-commerce in the US but this app, in addition to offering image recognition, includes store locator features. It is seen more as a device to drive instore traffic.
UK: Retailers to accept 'mobile' payments next year 13 September, 2013 |Fresh Plaza http://www.freshplaza.com/news_detail.asp?id=113170#SlideFrame_1 Shoppers will next year be able to use their mobile phone to pay in just 12 seconds at stores such as WH Smith, Lidl, Superdrug and McDonald's, The Telegraph can disclose. A major deal has been struck to allow thousands of retailers across Britain to support Zapp, a new mobile phone payment app backed by Britain’s biggest banks. The Zapp app, due for launch in Summer 2014, is designed to work with the type of online banking applications offered by Barclays, NatWest, Nationwide and Lloyds. It will work using a code sent to a customer’s smartphone at the till or online checkout. Alternatively customers will be able to scan a code into the handset from a bill in a restaurant or the screen on a modern card machine. The code will contain all the information needed to complete the transaction, including the price, retailer and complete details of the goods being bought. This will appear on screen. Once a customer has logged into mobile banking app on their phone, the transaction can be completed with a tap of the finger.
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Testing by Zapp said that the whole process can take just 12 seconds. This is considerably less than online checkout purchase times, which are never less than one minute 30 seconds, it said. Shoppers will also be able to check their balance before buying. Zapp chief executive Peter Keenan said that Zapp will make paying for goods and services “slicker than Amazon”. He said the end goal would be to develop the service so that shoppers could leave their wallet at home. “Zapp will be safer and faster than almost any other payment method and substantially reduce fraud, as you will need to authenticate the purchase by logging into your online or mobile banking.”
LECLERC publishes interactive catalogue 12 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85824?WTrss_f=Daily%20News%20Summary&WTrs s_a=LECLERC%2Bpublishes%2Binteractive%2Bcatalogue&WTrss_ev=a Leclerc has published a new interactive catalogue. The new printed catalogue accompanies a new smartphone app called Prospectus. The app uses visual recognition technology to enable shoppers to access additional product information or videos by holding their smartphone camera over trigger images in the catalogue. The new catalogue also offers additional features such as the possibility to compare different computer models or 'my back-to-school budget’ which helps shoppers to select products for their children according to a previously set budget. Using the new app, the French independent grocery retailer claims it has been able to reduce the page numbers by half compared to previous catalogues. In 2010, Leclerc launched an initiative called 2020: Zero Prospectus, with the aim of ending the use of print catalogues by 2020.
MACY'S installs interactive activewear kiosks 12 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85828?WTrss_f=Daily%20News%20Summary&WTrs s_a=MACY%2527S%2Binstalls%2Binteractive%2Bactivewear%2Bkiosks&WTrss_ev=a Macy's is to strengthen its appeal to the millennial shopper by expanding its athletic apparel assortment. To broaden its reach it is using instore interactive kiosks. The US department store chain said kiosk technology will be incorporated into its activewear initiative to allow customers to access specific brands from any store.
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"Our customer insights show that our millennial customers have significant crossover in shopping active where we have the assortment, so we believe that satisfying his and her total lifestyle must involve more fashion and function in our active offerings," said Jeff Gennette, Macy's Chief Merchandising Officer. He added: "We are working with the best brands in the category to bring our customers exciting merchandise that will serve their athletic interests in all endeavours - from the yoga studio to the weight room, to hiking and rock climbing."
Metro Revamps Mobile/Web ‘Ecosystem’ 11 September, 2013 |Supermarket News http://supermarketnews.com/retail-amp-financial/metro-revamps-mobileweb-ecosystem MONTREAL — Metro Inc. here has unveiled a new web and mobile “ecosystem” the retailer said would further enable its personalization strategy. The proprietary technologies, including an iPhone mobile application and a revamped website, were developed over 18 months and allow users to manage their purchases before, during and after their trip to the grocery store, the company said. "With the rapid transformation of retail in the digital world, purchasing habits in the food industry are changing, and we are determined to stand alongside consumers in a personalized way as things evolve," Marc Giroux, vice president, chief marketing and communications officer for Metro, said in a statement. “Our digital ecosystem (mobile and web) was designed to facilitate customers' purchasing cycles, to give them more inspiration and savings and develop an even more personalized relationship with them that takes their needs, tastes and lifestyle into consideration." The new Metro website is more user-friendly, more intuitive, and more personalized, Metro said. Users will be able to synchronize their grocery list with the My Metro app, and in sharing their metro.ca account, all family members will share the list. Users who are also metro&moi members can use their iPhone at the checkout as their metro&moi card, and redeem their personalized coupons. Users can also use their phone at the checkout to redeem their personalized coupons.
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TESCO updates on smartphone self-scanning 06 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85714?WTrss_f=Daily%20News%20Summary&WTrs s_a=TESCO%2Bupdates%2Bon%2Bsmartphone%2Bself-scanning&WTrss_ev=a Tesco plans to have self-scanning with shoppers’ smartphone in five more UK stores before Christmas. The retailer’s CIO Mike McNamara told Planet Retail in an exclusive interview published this week. So far, the scheme - where shoppers can scan with their smartphones while walking the aisles and pay at a self-service unit – is only available in a few outlets. However, according to McNamara, scanning with shoppers’ smartphones will only come of age if customers can pay using their phone as well. ” Only when I can pay on the phone, will it become a more attractive proposition, as then I can bypass the checkout altogether,” he explained. “Such a solution would be perfect in our busier stores, especially in city centre convenience stores at lunchtime,” he added.
OTTO GROUP brings Yapital to Sportscheck.de 04 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85680?WTrss_f=Daily%20News%20Summary&WTrs s_a=OTTO%2BGROUP%2Bbrings%2BYapital%2Bto%2BSportscheck.de&WTrss_ev=a The Yapital payment service has gone live at the online shops of Sportscheck and jeans specialist H.I.S., reports Lebensmittel Zeitung. Like Yapital, Sportscheck is 100% owned by Otto Group. A rollout of Yapital across the entire Sportscheck store network is scheduled to be completed by year end. In mid-August, the Germany-based multi-channel retailer and services company Otto Group launched the Yapital payment service at a Görtz shoe store in Hamburg. The retailer is looking to bring the payment service to the entire store network as soon as possible. Yapital is a payment service for online and mobile shopping and retail stores, similar to eBay’s PayPal solution. Customers must register online and choose a payment method (such as by credit or debit card). Yapital payments may then be made with mobile devices at a retail store or in an online shop.
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Strategy JOHN LEWIS expands on international and e-commerce ambitions 13 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85835?WTrss_f=Daily+News+Summary&WTrss_a=J OHN%2bLEWIS%2bexpands%2bon%2binternational%2band%2becommerce%2bambitions&WTrss_ev=a John Lewis aims to launch dedicated local language e-commerce sites in France and Germany by early 2014. Managing Director Andy Street confirmed the move in a results conference call with analysts. The sites will feature local product assortments and items priced in euros. Additionally, Street confirmed that the UK department store retailer is looking to build on its partnerships with retailers in Asia, following its successful venture in South Korea with Shinsegae. John Lewis has enjoyed strong success from its bricks and clicks strategy in the UK and e-commerce sales made up 26.6% of total sales for the retailer during the first six months of this year. The company revealed it expects to generate 40% of sales from e-commerce by 2020. John Lewis said that two-thirds of its customers now shop via more than one channel and one in five customers entering John Lewis stores to pick up click & collect orders make an additional purchase whilst there.
Dunkin' Donuts to enter UK 13 September, 2013 |The Retail Bulletin http://www.theretailbulletin.com/news/dunkin_donuts_to_enter_uk_13-09-13/ US doughnut brand Dunkin' Donuts is to enter the UK after signing a franchise agreement with The Court Group to open 25 outlets in East London over the next five years. In addition, DDMG Ltd, a partnership formed by three experienced US Dunkin' Donuts franchisees and two local UK operators, will develop 25 Dunkin' Donuts outlets in north London over the same period. The chain is also in advanced discussions with additional franchise partners to help develop a total of 150 Dunkin' Donuts restaurants in the UK over the next five years, which includes the two signed agreements. Giorgio Minardi, president of Dunkin' Brands International, said: "We feel there is significant opportunity for Dunkin' Donuts in the UK, and we have had a tremendous response from potential franchisees interested in developing the brand across the country.
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“We are especially excited to begin the expansion of Dunkin' Donuts into the UK with The Court Group and DDMG Ltd, two experienced franchisees who have a deep passion for the brand and a solid understanding of the local market. We look forward to working with them to make Dunkin' Donuts' high-quality beverages, baked goods and sandwiches part of the way of life in the UK." Dunkin' Donuts currently has more than 10,500 restaurants in 31 countries around the world, including more than 100 locations across Europe in Bulgaria, Germany, Russia and Spain. As well as selling a range of doughnuts, muffins, croissants and sandwiches, the UK outlets will offer regional menu items specific to the UK to cater to local tastes and options. Jim Johnstone, general manager, UK, for Dunkin' Brands, said: "As we develop the Dunkin' Donuts brand in the UK, we continue to look for qualified, multi-unit franchisee candidates who have a strong financial background, a deep knowledge of the local market, a proven track record of success in the restaurant industry and a desire to develop a minimum of 25 Dunkin' Donuts restaurants in their market over the coming years." Dunkin' Donuts' sister brand, Baskin-Robbins, currently has 100 locations in the UK, including freestanding restaurants as well as concession locations in other shops and cinemas. "Over the last 18 months, we have opened more than 10 new Baskin-Robbins locations with both existing and new franchisees. We are keen to continue the expansion of the Baskin-Robbins brand across the UK with multiple operators," added Johnstone.
Sale of Stores Boosts Piggly Wiggly Finances 12 September, 2013 |Supermarket News http://supermarketnews.com/retail-amp-financial/sale-stores-boosts-piggly-wiggly-finances CHARLESTON, S.C. — The sale of 28 stores to Bi-Lo and Harris Teeter will allow Piggly Wiggly Carolina here to put itself in a better financial position for the future, an advisor to the company told SN. Following the divestitures, employee-owned Piggly Wiggly Carolina will continue to operate 32 corporately owned stores — primarily in rural markets — and to supply 28 franchise customers. The company initiated the acquisition discussions as a means of addressing debt incurred as a result of its ESOP conversion along with increasing competition, particularly around Charleston, Mark Gross of Surry Investment Advisors, Piggly Wiggly’s financial advisor in the deal, told SN. “Coming into the Charleston market are well-funded competitors — Publix, Harris Teeter and a postbankruptcy, revitalized, re-energized Bi-Lo,” he said. “Those three in particular brought added competitive pressure in a market where a small ESOP finds it more and more difficult to compete with bigger, more well-funded successful grocery chains.” Both Bi-Lo and Harris Teeter said they would retain workers at the stores they are to acquire.
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As reported by SN on Thursday, Piggly Wiggly Carolina agreed to sell 22 stores to Bi-Lo Holdings, Jacksonville, Fla., and six stores to Harris Teeter Supermarkets, Matthews, N.C. Financial terms were not disclosed. All Piggly Wiggly employees at affected stores will have job opportunities with Harris Teeter and BiLo, Piggly Wiggly said. ”The departure of employees and stores from the Piggly Wiggly team will be acutely felt, but we know that both Harris Teeter and Bi-Lo will benefit from these outstanding folks,” said David Schools, president and chief executive of Piggly Wiggly Carolina Co. “We are glad that all store employees affected by this transaction will have the opportunity to work for Harris Teeter and Bi-Lo, and guests will continue to be served by the familiar people who have been the backbone of these stores for years.”
Tesco lend Yucaipa £80m to take Fresh & Easy off its hands 11 September, 2013 |Retail Gazette http://www.retailgazette.co.uk/articles/42110-tesco-lend-yucaipa-80m-to-take-fresh-easy-off-itshands Tesco will end a six year attempt to crack the US by lending billionaire Ron Burkle’s Yucaipa investment company £80m to take the loss-making Fresh & Easy stores off its hands. Los Angeles based company, Yucaipa, will acquire over 150 Fresh & Easy stores, its distribution and production facilities and 4,000 Fresh & Easy employees will transfer to the new business. Tesco announced they would be pulling out of the US in April after incurring losses of £1bn. The deal will further decrease the world’s third largest retailer international portfolio following its Japan pullout in 2012. Last month it said it would be entering a Chinese merger with firm CRE. “The decision we are announcing represents the best outcome for Tesco shareholders and Fresh & Easy’s stakeholders. It offers us an orderly and efficient exit from the U.S. market,” said Tesco Chief Executive Philip Clarke. The deal ensures that Tesco will avoid having to close all 150 Fresh & Easy stores and lay off its entire workforce of 5,000.
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India: Walmart Inc may end partnership with Bharti Group 10 September, 2013 |Fresh Plaza http://www.freshplaza.com/news_detail.asp?id=113008#SlideFrame_1 Walmart Stores Inc is mulling to pull out of its six-year-old wholesale joint venture with Bharti Group amid speculation that the world’s largest superstore chain has begun talks with other companies for its front-end retail foray in India. The US-based retail giant is likely to make an announcement by this month-end on its decision not to convert into equities $100 million it had lent to the Bharti Group in 2010 in a deal which Indian authorities are probing for flouting rules. This would effectively rule out Walmart partnering with the Sunil Mittal-led group to set up mega stores in India. The deadline for converting these funds lent through compulsorily convertible debentures (CCD) ends on September 30. Walmart, sources indicated, is likely to press for Bharti Group returning the funds through a “buyback” option. Walmart India chief Raj Jain left the company recently in a sudden move and Bharti Walmart, suspended five executives as part of an ongoing investigation against alleged corrupt practices that the US retail giant has launched globally including in China, Brazil and Mexico.
NEIMAN MARCUS sold for USD6 billion 10 September, 2013 |Planet Retail http://www.planetretail.net/News/Article/0/85794?WTrss_f=Daily%20News%20Summary&WTrs s_a=NEIMAN%2BMARCUS%2Bsold%2Bfor%2BUSD6%2Bbillion&WTrss_ev=a Neiman Marcus has been sold to Ares Management and Canadian Pension Plan Investment Board for USD6 billion. The two new owners will hold an equal stake in Neiman Marcus. The company's management will retain a minority stake. "We plan on investing meaningful capital into the business to ensure Neiman's long-term position as the unparalleled leader in luxury retail,” said David Kaplan, Senior Partner & Co-Head of the private equity group Ares. In June, the equity firms that currently own Neiman Marcus filed a plan for the Dallas-based department store chain to go public while at the same time searching for a buyer. The new deal means that the company is unlikely to go public now.
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