Tag: Supermarket

  • Spar China expands footprint during Covid-19 virus outbreak

    Spar China expands footprint during Covid-19 virus outbreak

    Dutch multinational retail-grocery franchise system Spar has launched six new locations in China in the midst of the coronavirus lockdown.

    The firm benefitted from the scale and duration of China’s lockdown being briefer than initially feared – with an early easing of restrictions during April – as it opened six new supermarkets in Beijing, Guangdong, and Shandong.

    The new stores offer local and essential goods with online and home delivery options.

    Observations in Retail Insight Network suggested the new stores may serve to relieve pressure from the retailer’s delivery platforms in redistributing demand more equally, as well as support vulnerable communities that may not have access to online platforms with its focus on daily essentials and groceries

    About 73 percent of Chinese consumers are still significantly concerned about a reemergence of the coronavirus within the territory, which may impact consumer engagement with Spar’s new venues. The firm has implemented a range of health and safety measures within all stores to assuage customer concerns.

  • Meal kits drive strong sales and profit growth for GS Retail

    Meal kits drive strong sales and profit growth for GS Retail

    GS Retail, which operates the South Korean convenience-store chain GS25, has reported a huge profit increase for this year’s first financial quarter, boosted by sales of pre-packed meal kits popular during the coronavirus lockdown.

    GS Retailreported a KRW88.8 billion (US$72.1 million) in profit from January to March, a 314.7-per-cent increase over last year’s figures. The result was considerably higher than the projected KRW23.9 billion ($19.5 million) profit for the period and sparked a 16.6-per-cent rise in its share value.

    A 98.7-per-cent surge in online sales was also a significant contributor to the firm’s first-quarter good fortune, with overall sales totaling KRW1.6 trillion ($1.3 billion).

    Last year, in the same period, GS Retail recorded a loss of KRW4.8 billion ($3.9 million).

  • Profit increased for Singapore supermarket Sheng Siong

    Profit increased for Singapore supermarket Sheng Siong

    Singapore supermarket operator Sheng Siong boosted net profit by 49 percent in the March quarter as sales surged due to the Covid-19 pandemic.

    Sales were up by 30.7 percent in the quarter, or by 19.7 percent on a same-store basis, initially due to stronger Lunar New Year sales. When Singapore’s government introduced a round of restrictions on public behavior due to the pandemic on February 7, demand for groceries soared.

    “Since then, demand has been elevated as more people are eating at home and probably loading up their pantry as well,” the company said in a statement.

    Profit for the March quarter was S$29 million on sales of $328.7 million, with gross margin improving from 26.1 percent to 27 percent, largely due to increased sales of house brands.

    The company says it is uncertain how long Singapore’s economy will take to normalize once the Covid-19 pandemic passes.

    “When that happens, the group expects revenue to taper off from the current elevated levels as buffer stocks kept by households are consumed. In the meantime, the group will continue to hold a higher-than-normal level of inventory to hedge against potential disruption in the supply chain.”

    The group is also wary of Covid-19’s effect on the supply chain, with some international food companies warning of future disruptions and an increase in the price of some goods due to the now worldwide lockdown.

    Sheng Siong CEO Lim Hock Chee says the company remains committed to a strategy of opening supermarkets in areas where potential customers reside but where it has no presence yet.

    “We will continue with our efforts to nurture the growth of the new stores and build on the momentum of improving comparable same-store sales in Singapore and China, while focusing on improving gross margin and cost efficiency by changing the sales mix with a higher proportion of fresh produce and deriving more efficiency gains in the supply chain,” he said.

    Since March 31, the company has secured two new HDB stores in Singapore which were tendered in January – at Block 872C Tampines Street 86 (8490sqft) and Block 455 Sengkang West Avenue (9040sqft). It also won a tender for a 4610sqft shop in the Potong Pasir Community Club at 6 Potong Pasir Ave 2.

    Sheng Siong will open five stores this year taking its network to 64 and its combined retailing area to 575,160sqft.

  • FairPrice launches mobile supermarket in Singapore

    FairPrice launches mobile supermarket in Singapore

    Singapore supermarket chain FairPrice has launched a mobile grocery service dubbed ‘FairPrice on Wheels’, delivering essential groceries closer to customers’ homes.

    With FairPrice on Wheels, customers living far away from supermarkets can now buy products from FairPrice’s vans parked near their home. Essential products include rice, milk, eggs, canned products, vegetables and toiletries. FairPrice has imposed purchase limits on these products as per below:

    “While we encourage everyone to stay home during the circuit breaker period, we also understand that there may be people who do not have the option to have their groceries purchased on their behalf,” said FairPrice Group CEO Seah Kian Peng.

    “Therefore, we aim to bring daily essentials closer to their homes, especially for seniors, so that they do not have to spend too much time away from home.”

    FairPrice on Wheels is available in five locations: Commonwealth Link, Telok Blangah Crescent, Telok Blangah Rise, Kampong Glam Community Club and Jalan Kukoh. More locations will be added soon.

  • FamilyMart Taiwan plans rolling out 200 new stores

    FamilyMart Taiwan plans rolling out 200 new stores

    Familymart Taiwan is aiming to open 220–230 new stores in the territory this year, as the Japanese convenience-store chain franchise, emerges unaffected by the coronavirus turmoil.

    The firm’s takings in this year’s first financial quarter are anticipated to rise 8.4 percent year -on year to NT$19.71 billion (US$652.3 million). FamilyMart Taiwan reported net earnings of NT$1.83 billion ($60.56 million) last year.

    The franchise has suffered minimal fallout from the coronavirus pandemic, with only a low percentage of its earnings derived from operations in Mainland China.

    The firm is the second-largest convenience-store chain in Taiwan, operating 3606 locations nationwide and more than 1200 stores in nine cities on the mainland. The number of closed stores in China dropped from 600 to 100 last month as the Covid-19 pandemic eased. The firm expects operations in China to normalize in July.

  • City Super supermarket chain sale sparks strong interest

    City Super supermarket chain sale sparks strong interest

    Investment groups China Resources and Yonghui Superstores, as well as some private individuals, are among potential buyers of Hong Kong’s City’Super high-end grocery chain.

    Current owner The Fenix Group is intending to sell a majority stake in the business in a deal that could attract US$300–400 million. The firm is likely to call for bids later this month or otherwise in early April, depending on the coronavirus outbreak situation at the time.

    Billionaire Peter Woo, who owns a minority stake in the business, is expected to hold on to his shares. Talks, however, remain at early stages and the deal may not eventually go ahead.

    City Super Group currently operates 21 Hong Kong City’Superstores, with an additional seven in Shanghai and another seven in Taiwan under different brand names. The stores are located in prime properties such as Hong Kong’s IFC Mall.

  • Sheng Siong looks for new store sites as sales and profit grows

    Sheng Siong looks for new store sites as sales and profit grows

    Singapore supermarket operator Sheng Siong says it plans to open more stores across the city in the wake of a 7.4-per-cent profit increase last year.

    Sheng Siong Group achieved a net profit of S$75.8 million (US$54 million) for the December year on revenue up 11.3 percent to S$991.3 million, largely due to store network growth.

    “Our store expansion plan in Singapore is progressing well,” said CEO Lim Hock Chee.

    Five new stores opened last year and two more already this year adding 56,820sqft of trading area and taking the network to 61.

    “Moving ahead, we will stay focused on looking for new retail spaces especially in areas where our potential customers reside with an aim in mind to expand our retail network in Singapore.”  The company says it will focus on continuing to look for retail space in new and existing Housing Development Board housing estates, particularly in estates where the group currently has no presence.

    “Our key priorities are nurturing the growth of our new stores in Singapore and China while enhancing the gross margin and lowering input cost remain as one of the core areas that we will be working on,” said Lim.

    He added the company would seek to adjust stores’ sales mix adding a higher proportion of fresh produce and deriving more efficiency gains in the supply chain in the year ahead.

    The company remains optimistic about trading this year despite expectations Singapore’s economic growth will slow to less than 1.5 percent – potentially even entering a recession – due to the impact of the coronavirus.

    The company’s results commentary said retail sales, in particular at supermarkets had “not been exciting” last year and could be negatively affected this year.

    “Competition in the supermarket industry is expected to remain keen.”

    This year’s openings were a store on the first floor of Block 118 Aljunied Avenue 2, with an area of approximately 18,000sqft on January 1 and at Block 202 Marsiling Drive (5540sqft) on January 11.

  • First Best Mart 360 Macau store opens

    First Best Mart 360 Macau store opens

    Best Mart 360, the Hong Kong-listed ‘leisure-food retailer’ opened its first store in Macau yesterday.

    The company – which has suffered vandalism to some 75 of its Hong Kong stores during recent protest activity – believes there is potential for as many as 15 stores in Macau.

    In an interview with the South China Morning Post, chairman and co-founder Lin Tsz-fung said the expansion into the new territory was planned many years ago.

    “We hope to diversify our markets to Macau and Mainland China. We think Macau has a lot of tourists,” he said.

    A significant expansion in Best Mart 360’s store network helped boost sales in the first half of this year, despite the company being heavily impacted by protests since June.

    As at the end of September, Best Mart 360 operated 98 stores, a net 21 more than the same time a year earlier. Most of the new outlets are on the mainland.

  • Five new Spar China stores open

    Five new Spar China stores open

    Grocery-retailer Spar China has launched five new supermarkets.

    The Dutch-headquartered international franchise business has opened two stores in Shandong and three in Guangdong, both Chinese provinces, and bring the chain’s total footprint in the territory closer to 400 stores.

    The stores are constructed in similar but not identical formats. The Huailai County, Shandong 8000sqm outlet sells local and international produce, whereas the 10,000sqm store in the provincial capital of Jinan offers a high-end shopping experience and includes beauty products, homecare, and baby products.

    Opening in Guangdong is a 4500sqm supermarket in Foshan City and two Spar Lifestyle stores in Dongguan with a floor space of less than 200sqm.

  • Lianhua Supermarkets highlights ‘togetherness’ in branding revamp

    Lianhua Supermarkets highlights ‘togetherness’ in branding revamp

    Chinese state-owned retailer Lianhua Supermarkets has undergone a complete brand refresh, after 28 years of trading.

    The new look, including a refreshed logo and instore signage and design, is being rolled out across the retailer’s 42 stores in China including Shanghai, Hangzhou, Anhui, Guangxi, and Henan.

    Like many traditional Chinese retail brands, Lianhua’s efforts to attract and retain customers until now were focused on in-store promotion and pricing. However, Chinese consumers have become more sophisticated and the market is more competitive now, meaning brands have to stand out from the crowd and develop a connection with their customers.

    “Numerous digitally-driven and technology-led retail brands have seized the market share and disrupted China’s retail industry bringing fresh and seamless online to offline retail experiences to China’s increasingly discerning consumers,” said a Superunion managing creative director Ray Lan. “In order to deal with the external challenges, Lianhua felt the need to change and define touchpoints to re-establish the connection with consumers amidst fierce competition in China’s retail industry.”

    The agency’s team started the project by interviewing staff and management to understand brand and what it meant to the people who work there. Through this process, Superunion uncovered unique aspects of Lianhua’s culture – from the older, more experienced employees, to their reliable supply chain and neighborhood-oriented stores.

    “The high market coverage of stores is also the biggest difference between Lianhua and its peers. These strengths are part of Lianhua’s long-held heritage and are more pertinent than ever amidst China’s fast-moving, overwhelmingly dense information society, a society that increasingly fears losing meaningful connection,” said Lan.

    Togetherness

    This insight is the core of the brand’s newly created brand positioning of Togetherness, aiming to nurture relationships and solve the pain points that consumers experience in a fast-paced life. Through Togetherness, Lianhua has re-examined the nature of retail and created a more satisfying consumer experience providing high-quality products and consumer services, giving them a more unique positioning in a highly competitive market.

    “Togetherness has been visualized as an elaborate ribbon that ties all elements together. The new eye-catching store signage has become a highlight on the streets of the Yangtze River Delta region with the new key visual communicating a sense of connection among Lianhua, shoppers and the community.”

    As part of the corporate rebranding process, a cross-functional brand committee and a brand team have been established to provide professional brand management training and to ensure the brand transformation progresses smoothly, with passion and engagement from within the organization, both at head office and in-store. Lianhua employees and consumers believe the new logo and brand image brings a modern touch to the household name and is expected to attract younger generation to the store.

    The first stage of the brand rollout will be completed by the end of this year, by which time all stores will have new livery, in-store design, staff uniforms and signage.

    Lan says customer response to date has been positive, with the fresh new look in-store vastly improving the Lianhua brand experience.

    “Creating the Lianhua brand identity was a challenging but fun journey. The new key visual – the “ribbon” – reflects the brand positioning “togetherness” in a very smart way, endowing it with a more vivid and concrete representation. It has become a powerful visual asset of Lianhua, enriching the brand through various touchpoints, and communicating what the brand stands for to customers.”

    Doreen Cheng, CMO, Lianhua Supermarket Holdings, said the company believes retail has the power to bring communities together.

    “Superunion helped Lianhua build a unique brand model of togetherness that comes from the intersection between Lianhua’s strengths (coverage and resource) and the cultural disconnection being felt in Chinese communities. Togetherness will differentiate Lianhua in the competitive retail market, creating a holistic platform for the brand.”

  • Malaysian supermarket stops selling products labelled ‘palm-oil free’

    Malaysian supermarket stops selling products labelled ‘palm-oil free’

    Mydin, Malaysia’s largest supermarket chain, has announced plans to de-stock any products promoted as “palm-oil free” in a move aimed at discrediting the environmental movement.

    The expansion of palm-oil plantations – the majority of which are located in Malaysia and Indonesia – has led to substantial deforestation of the native habitats of the three surviving species of orangutans, one of which – the Sumatran – is on the list of endangered species.

    In 1992, the Malaysia government pledged to limit the expansion of palm oil plantations – which typically are planted on land where natural forests have been cleared. Now the government is actively promoting the use of palm oil to boost the nation’s exports of the product, apparently no longer concerned about its environmental impact.

    In July, the Malaysian government promised action against an international school for spreading “anti-palm oil propaganda” and Teresa Kok, Malaysia’s minister of primary industries, this week praised Mydin’s move to ban products promoted as palm-oil free. She said she hoped other retailers would follow Mydin’s example.

    This year, the European Union passed an act to phase out palm oil from renewable fuel by 2030 due to deforestation concerns.

    Malaysia and Indonesia account for about 85 percent of the world’s palm-oil production, of which about 70 percent is used in foods. Manufacturers use palm oil because it is inexpensive compared to alternatives – and because it has a high saturation when used in frying.

    According to The Edge, the Malaysian government is considering a law banning all products flaunting non-use of the oil.

    Ameer Ali Mydin, MD of Mydin Mohamed Holdings, told a press conference that his stores removed all anti-palm products on Wednesday.

    “We must support palm oil,” he said, along with taking steps to counter-marketing and branding exercises that people do that discourage consumers to buy palm oil.

    “By labeling something that there is no palm oil, you’re actually telling people that palm oil is bad for you.”

    Of course, Mydin’s comment is complete nonsense. The reason marketers promote their products as not containing palm oil is to allow consumers to make an informed choice on whether they should buy the product, based on their concerns for the environment, specifically endangered orangutans. It has nothing to do with consumers’ health.

    Indonesia’s government has also reportedly told some retailers in Jakarta not to stock products with ‘palm-oil free’ labels.

  • Aldi growing three times as fast as competitors

    Aldi growing three times as fast as competitors

    Australians top priorities in grocery shopping are convenience, quality and pricing – with the latter surprisingly coming in third.

    Dunnhumby’s latest Australian Grocer Retailer Preference Index found that Woolworths is the go to “one-stop-shop” for wide product variety while rival Coles is the chosen grocery for promotions and rewards. However, discount grocer Aldi beats them both on price.

    “Aldi has built the strongest emotional connection with its customers by delivering consistently low prices, quality products and higher perceived ‘value’,”said Keri-Jane Jacka, commercial director ANZ, dunnhumby.

    “Further, our findings show Aldi customers are more likely to recommend the retailer to their friends and family and be sad if their nearest store closed.  This strong emotive response suggests that Aldi has really strong brand equity – a driver for long-term customer loyalty and continued success in the market.”

    Woolworths beats Coles as Australians’ preferred grocery retailer with an RPI score of 95 versus 91. However, Aldi is hot on the heels, described as an ‘accelerating threat’ with an RPI score of 69. The discount grocer is growing three times faster than its competitors, and can potentially double its market share in the next 10 years, dunnhumby said.

    “With Aldi outperforming on all price attributes and developing a real connection with its customers, in order to remain the preferred grocery retailers amongst shoppers, Woolworths and Coles must continue to invest in data-driven retail strategies to foster loyalty and build trust. They must offer lower prices across the board instead of focusing on discounts, and more convenient, easy shopping experiences that delight customers,”
    Jacka said.

    The index shows that the ‘big two’ supermarket giants, Woolworths and Coles, capture two-thirds of shopper visits. One third of shoppers buy at Woolworths, Coles and Aldi in the last month.

    The report found that Australian grocers face intense pressure from e-commerce and discounters that leverage customer data to engage and retain shoppers today. It’s the ‘new normal’ strategy for retailers to win and retain the modern shopper.

    “Retailers need to be far more strategic in their approach to pricing and promotions. To remain competitive, they need to think introspectively on how they can maximize personalization and create the most value for their customers by leveraging the huge amounts of customer data at their disposal,” Jacka said.

    Five primary customer pillars

    Dunnhumby reported that there are five primary customer pillars. These are convenience and quality; easy shopping experience; price; operations and drive time.

    It ranked the five retailers with Woolworths ahead of Coles. Aldi comes in third as the “dark horse in the race”, while IGA and 7-Eleven currently trailing.

    Convenience matters for Aussie shoppers

    Aussies value time so convenience, quality and easy-shopping experience are on the top of their priorities for overall preference driver. But for Woolworths and Coles customers, it is less important as long as they are satisfied with their items.

    Woolworths and Coles are the strongest on quality goods and convenience. IGA’s strongest in good customer service and clean stores. While Aldi offers also good quality products, but trails behind the two supermarket giants on convenience. 7-Eleven’s biggest issues are cleanliness and perishables, but the retailer wins in ready-to-eat items.

  • Singapore supermarket operator Sheng Siong reports profit boost

    Singapore supermarket operator Sheng Siong reports profit boost

    Singapore supermarket operator Sheng Siong boosted its net profit by 7.4 percent in the June quarter, to S$18.42 million.

    Sales rose 11.8 percent to $238.16 million on the back of 13 new store openings.

    However, the company has warned investors that competition in the Singapore supermarket sector is tough, from both online retailers and rival supermarket chains. Worse, consumer spending may be impacted by a soft economic outlook.

    In the half-year to date, Sheng Siong recorded a 6.6 percent increase in net profit to $37.78 million, on sales up 11 percent to $489.59 million.

  • Carrefour China business Sold

    Carrefour China business Sold

    Suning is to buy an 80 percent controlling stake in Carrefour China for €620 million (RMB 4.8 billion).

    The first Carrefour China supermarket was opened in 1995 when the French company was one of the first foreign retailers to enter the market. Currently, it operates 234 outlets – 210 large-format hypermarkets and 24 convenience stores. Net sales for its last full year were €3.6 billion (RMB 28.5 billion) and pre-tax profit €66 million (RMB 516 million).

    Just last month, Carrefour executives denied the business was for sale, but financial media have been reporting what turned out to be markedly accurate reports of negotiations this year.

    Suning’s purchase follows the acquisition of 37 Wanda department stores earlier this year, which will be converted to Suning.com branding.

    The company says it will use its smart-retail expertise to digitalize Carrefour China’s existing store network to create a “leading innovative supermarket shopping experience”.

    “In the future, we expect to open up the access for Suning’s various business models, such as household-electronics sales, Redbaby, JIWU, Suning Financial Services, SuFresh and Suning Xiaodian’s immediate delivery, [and] to get into Carrefour China’s stores located in the central business and living areas of Chinese first- and second-tier cities,” said Tian Rui, VP of Suning.com.

    “It will help us better meet more consumers’ needs due to strengthened core capabilities achieved by store innovation. With 400 million registered customers of the company’s retailing segment, Suning.com’s users-ecosystem will complement Carrefour China’s membership system, fully improving the customer value.”

    He said that by connecting the more than 6000 Suning Xiaodian stores with Carrefour China’s outlets, Suning’s ‘last-kilometre home-delivery service will be able to serve more consumers with lower cost but higher efficiency.