Supermarket construction rises 42% since 2008 Tuesday, 26th July 2011
Supermarket development has surged 42 per cent since the first half of 2008 with 41.22m sq. ft. of new space under construction at the end of the first quarter 2011 according to research from CB Richard Ellis (CBRE).
According to the research carried out by CBRE, supermarkets are the only sector to see a sustained increase in construction activity.
CBRE director Christopher Keen has said: “Supermarkets, because of the high levels of shopper footfall that they can generate, are emerging as a potent anchoring alternative to strengthen failing areas.”
Despite the recent stagnation of non-food sales growth, the demand for additional supermarkets in out-of-town locations remains exceptionally strong and the primary focus of grocers’ expansion plans according to CBRE.
“New Normal” threatens big grocers Thursday, 21st July 2011
Analysts at Citigroup this week suggested that Tesco, J Sainsbury and Morrisons may be struggling to deal with “the new normal”: low GDP growth, tightened consumer purse strings and low population growth.
A Citi broker said on Wednesday that “Not one of the Big Four players is behaving as if this outlook is even a remote possibility.” In fact, all are adding new space while growth is deteriorating and cheaper competition threatens.
The broker also said that the biggest supermarkets “assume a return to historic norms of growth and consumer behaviour [will happen] in the near future.”
There appears to be nominal evidence for the “new normal” theory. J Sainsbury share prices fell 0.90 per cent to 313p, Morrisons was 0.3 per cent lower at 294p, and Tesco only fractionally up. However, given the stagnant nature of economic growth in the UK at present, the theory appears to hold more than a kernel of truth which should register with the Big Four if they are to keep a foothold on their pedestals.
Grocery prices rise as online sales flourish Wednesday, 20th July 2011
Grocery prices in the UK have risen 4.8 per cent over the 12 weeks to 11 July compared with the same period last year, according to Kantar Worldpanel. Kantar also said that grocery inflation is likely to exceed 5 per cent this year.Spending in supermarkets overall has risen by 4.6 per cent to £23.8 billion over the three months compared with 2010, suggesting a 0.2 per cent drop in sales volumes over the period.However, online sales are growing at a rate which healthily outstrips sales in physical stores. June in particular was a bumper month for e-tail with £5.3 billion pounds spent – 21 per cent more than last year. Again, the Royal wedding has been touted as a key factor in sales successes over the last few months as spending on beers, wines and spirits increased by 10 per cent year-on-year.The latest figures from the IMRG Capgemini e-retail sales index also revealed a better-than-expected performance for online sales during the first six months of 2011. IMRG Capgemini said the sales growth was the result of struggling high streets which drove shoppers online for better deals, hot weather which boosted spending on summer clothing and regular downpours which have recently increased the appeal of shopping from home.Clothing sales are up 31 per cent year-on-year and spending on travel also increased 14 per cent year-on-year and 4 per cent on May.
Tesco opens new South Korean academy Friday, 8th July 2011
Supermarket giant Tesco has opened a retail academy in South Korea to train 100,000 Asian staff.
Tesco has invested £300 million in the school and is the first FTSE 100 company to launch such an establishment in Asia.
Interestingly, the location of the school was decided after feng shui analysis was carried out. Apparently the academy "is an ideal location with mountains at the back and water in the front, in the shape of a golden hen sitting on eggs.
This symbolises 'making a fortune' which means a great business." Tesco group chief executive Phil Clarke said: "We have plans to expand across Asia in the years to come. We need to develop our local talent."
Iceland rolls out at-till promotions Tuesday, 24th May 2011
The value retailer has announced a new money-saving scheme for its shoppers, utilising new technology to update promotions and special offers instantly. Working with Clarity Retail Systems, Iceland developed an at-till loyalty scheme that can change promotions as quickly as the British weather, as Iceland shoppers will be able to swipe their Bonus card at the tills to receive up-to-minute offers printed on the back of their receipts. "By using the back of receipts you can switch to an entirely different promotional message immediately, as opposed to pre-planned leaflets and vouchers," said a spokesman for Clarity. "If there is a sudden weekend of blazing hot sunshine then the promotion can be for disposable BBQs, sausages, wine and ice cream. Or if there was a weekend washout and Iceland needed to shift a load of excess beer, they could offer a beer promotion on the Monday and Tuesday." Nick Canning, executive director at Iceland told press the new system will deliver “a significant reduction in costs” as well as giving Iceland “unprecedented marketing control.” Iceland has also revealed plans to launch an instant prize promotion, timed to coincide with the new series of “I’m a Celebrity”. Shoppers can expect to receive money off shopping, free products and trolley dashes as well as big ticket items from swiping their Bonus card at till points.
S.Africa says Wal-Mart could cost thousands of jobs Monday, 9th May 2011
(Reuters) - Wal-Mart's (WMT.N) acquisition of South Africa's Massmart (MSMJ.J) could lead to thousands of job losses and worsening labour conditions, the South African government will argue at a hearing that starts on Monday.According to a study commissioned by South Africa's economic development and agricultural departments, if Massmart shifts 1 percent of its sales to imports from domestic suppliers, about 4,000 jobs could be lost. Read full story on Reuters
Kate Middleton goes shopping at Waitrose in Anglesey and pushes her own trolley Thursday, 5th May 2011
( Daily Mail) A dressed-down Duchess of Cambridge was happy to do the weekly shop today mingling with other shoppers like any other housewife in Anglesey, North Wales. Read full story here
Spring stocks soar for supermarkets Monday, 11th April 2011
‘Feel good factor’ as temperature rises and sales lift for Waitrose by 23.7%.
The UK supermarket reported a wave of picnics and barbeque purchases over the weekend, as barbecue sales went up week-on-week by 566 percent.
Customers celebrated the first weekend of sunshine with strawberries- up 100 percent and raspberries up by 90 percent. Salads and coleslaw also proved popular with an increase for year-on-year sales of 54 percent and 152 percent respectively.
Waitrose’s managing director Mark Price said: “Sales soared with the rising temperatures last week as the warm sunny weather brought out the ‘feel good factor’ and put customers in the mood for summer with picnics and alfresco entertaining.”
Tesco-Asda price war descends into farce Thursday, 7th April 2011
According to This is Money, The supermarket price war involving Tesco and Asda has descended into farce with evidence that many bargain deals are a sham. A number of Asda's cheap 'rollback' items have actually gone up in price, according to its own website.While Tesco's promise to deliver better value food and other products if they are bought in bulk also does not hold true.The giants have been involved in a vicious tit-for-tat battle in recent months as they vie to be known as the cheapest of the 'big four' supermarkets. Read more here
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