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Tag: Supermarkets

  • Australian Food Inflation Hits 3.2 per Cent as Grocery Categories Diverge

    Australian Food Inflation Hits 3.2 per Cent as Grocery Categories Diverge

    Australian food and non-alcoholic beverage prices climbed 3.2 per cent in the year to September, accelerating from 3 per cent in August as grocery price movements split sharply across individual categories.

    Official figures from the Australian Bureau of Statistics show that while overall grocery inflation has eased from its peak of 9.2 per cent in late 2022, category-level volatility is dictating basket costs for supermarket operators and hospitality venues.

    Fresh Produce Leads Supermarket Price Divides

    The headline pace hides wide gaps on the shelves. Fruit prices jumped 10.2 per cent over the 12 months to September, and beef and veal rose 5.8 per cent. Milk prices climbed 5.4 per cent over the same period, while dining out and takeaway food recorded a 3.9 per cent increase. By contrast, pork prices declined, giving retail buyers brief relief in an otherwise climbing protein basket.

    RaboResearch senior food analyst Michael Harvey pointed out that price shifts are no longer running evenly through the aisles. “Rather than broadbased inflation across the supermarket basket, we’re now seeing much greater divergence between categories,” Harvey said.

    Distributors Warn of Seven Per Cent Wholesale Jump

    Cost pressures upstream threaten to erase recent stability for commercial kitchens and supermarket suppliers. Countrywide Foodservice Distributors, an industry group representing almost 100 distributors that serve 80,000 businesses and institutions across Australia, warned that domestic operators can no longer absorb rising operational overheads.

    The group projects an average increase of 7 per cent across food and beverage lines. Mounting freight outlays, higher fuel expenses and a global squeeze on synthetic nitrogen fertiliser linked to conflict in the Middle East are lifting farmgate input costs. Because natural gas and Gulf shipping routes dictate global fertiliser pricing, Australian growers are paying more to establish upcoming crops, which distributors expect to pass straight through to wholesale pricing schedules.

    Margin Squeeze Shifts to Private Label and Sourcing

    For supermarket chains and foodservice groups across the region, widening price gaps between categories destroy predictable margin structures. When basic produce like fruit spikes at double-digit rates, consumers trade down to discount private-label alternatives, purchase processed shelf-stable substitutes or trim basket sizes altogether.

    Retailers operating in Australia cannot lean on uniform across-the-board supplier price increases without alienating shoppers whose overall household budgets remain pinched. Margin defense now rests on selective category renegotiations: buying desks must swallow higher fruit and dairy inputs while exploiting cheaper pork supplies and flat packaging lines to keep basket totals manageable.

    Long Tail of Earlier Price Increases

    The current divergence follows five years of compounding retail food price escalation. An inquiry by the Australian Competition and Consumer Commission documented a 23 per cent surge in food and non-alcoholic beverage prices between March 2019 and June 2024. Although the annual rate of increase has downshifted from the 9.2 per cent recorded in the December quarter of 2022, the price baseline remains permanently elevated.

    The immediate indicator to track is the upcoming Australian Bureau of Statistics consumer price index release for the December quarter, which will confirm whether distributor-projected 7 per cent wholesale increases have begun flowing into supermarket checkouts.

  • 99 Ranch Market to Close Two California Stores and Cut 103 Jobs

    99 Ranch Market to Close Two California Stores and Cut 103 Jobs

    Tawa Supermarket Inc. Will close two 99 Ranch Market stores in California by December 5, cutting 103 jobs as Asian supermarket operators battle for grocery share across the state.

    The company scheduled the closure of its Chino location in San Bernardino County for November 15, eliminating 49 roles. Its Rose Pavilion shopping center store in Pleasanton will close three weeks later on December 5, ending 16 years of trading and affecting 54 staff.

    Worker Adjustment and Retraining Notification filings submitted to California authorities confirmed the job losses across both sites. Management posted a notice to customers at the Pleasanton store confirming the departure after more than a decade and a half of operations. The company operates alternative branches across both the Tri-Valley and Chino Hills areas.

    Pruning Older Outlets

    Tawa Supermarket characterized the closures as a push to streamline operations and reallocate resources rather than a withdrawal from California. The grocer built its business selling imported pantry staples, specialty produce and live seafood to Chinese and broader Pan-Asian communities.

    The two closures expose the financial pressures facing legacy ethnic grocers operating out of older suburban strip centers. Rising labor expenses, utility costs and lease renewals force operators to defend margins by cutting overlapping sites. Where density permits, consolidation allows grocers to push foot traffic toward larger, modernized formats.

    Rival Chains Target Northern California

    Pan-Asian supermarket chains from Japan and South Korea are expanding rapidly across the same suburban pockets. Korean operator H Mart entered Dublin, adjacent to Pleasanton, in March. Tokyo Central, the Japanese retail banner, took over a 40,000-square-foot site in Emeryville in January.

    T&T Supermarket pushed into San Jose in June, adding fresh capacity to Northern California. Independent Japanese operator Osaka Marketplace is preparing a store and food hall development in Pleasant Hill. These newer formats rely on extensive prepared-food counters, experiential food halls and modern supply chains to draw younger, higher-spending Asian American households.

    Pressure on Traditional Footprints

    The influx of capital into Asian specialty retail alters commercial leasing dynamics. Landlords who once relied on 99 Ranch as the sole regional draw for ethnic food concepts now court competing banners capable of anchoring entire power centers. The older Pleasanton unit faced immediate overlap once rival operators opened larger destinations within short driving distances.

    Suppliers serving Pan-Asian food networks across the Pacific must also adjust to shifting delivery routes. While wholesale orders remain intact across the metropolitan region, distribution shifts from older strip mall loading docks to larger consolidation hubs designed for rapid inventory turns.

    Pipeline Developments

    The retreat from Pleasanton follows months of aggressive positioning by regional rivals across Alameda and Santa Clara counties. H Mart is currently working on plans for a 100,000-square-foot supermarket in Fremont, an asset projected to become its largest grocery store in the United States. Execution of that Fremont project will test whether the East Bay market can absorb another mega-scale Asian retail footprint.

  • Australian Retailers Launch $10 Million Campaign to Protect Workers

    Australian Retailers Launch $10 Million Campaign to Protect Workers

    Australian retail organisations have launched the ‘Be Kind in Retail’ campaign, rolling out more than $10 million in advertising on November 4 to tackle abuse and violence against staff during the Christmas shopping rush.

    The push spans more than 2,700 locations and 7,600 digital screens across Australia, covering 400 shopping centres, 650 bank branches, and 1,650 convenience stores and service stations.

    New partners 7-Eleven and Viva Energy Retail, which operates OTR and Reddy Express, joined existing backers Woolworths and Commonwealth Bank as Australian Retail Council (ARC) data showed 87 per cent of retail workers have experienced verbal abuse.

    ARC research also revealed that 51 per cent of retailers reported physical abuse at least monthly. Those affected include retail and pharmacy staff, security officers, cleaners, convenience and fuel attendants, and shopping centre employees.

    ARC CEO Chris Rodwell said holiday trading was no excuse for abusive behaviour towards employees.

    We all have our bad days, but no retail worker deserves your temper.

    The campaign runs through December 24. Industry leaders stressed that protecting staff requires coordination across the retail sector.

    Australian Security Industry Association Limited (ASIAL) CEO Bryan de Caires said there was no justification for violence, threats or abuse towards security officers, cleaners and retail workers.

    Australian Association of Convenience Stores (AACS) CEO Theo Foukkare noted the convenience sector employs around 80,000 frontline workers who serve 20 million customers each week across Australia, calling workplace safety and respect a shared responsibility.

    Shopping Centre Council of Australia (SCCA) CEO Angus Nardi said the campaign’s presence across shopping centres and retail locations could encourage appropriate behaviour.

    Rather than focusing on negative behaviour, the campaign uses positive messaging centred on kindness and respect. SCCA research indicates this approach can influence behaviour and establish respect as a standard in retail environments.

    The industry is also working with governments and police on broader protection measures, including action against illicit tobacco, Workplace Protection Orders and coordinated retail crime operations such as Operation Percentile in NSW, Operation Measure in SA and Operation Pulse in Victoria.

  • Aldi to Reach 150 China Stores by End of 2026

    Aldi to Reach 150 China Stores by End of 2026

    Aldi is doubling its store expansion pace in China to reach 150 outlets nationwide by the close of 2026. The German hard-discount chain expects to launch around 60 locations this year, roughly twice its annual total from earlier years, China chief executive Jacqueline Chen said in an interview published this week.

    Expanding from Shanghai into Jiangsu

    The company operates more than 70 stores in Shanghai and over 50 across the southern region of Jiangsu province. Most locations run on a compact footprint of roughly 1,000 square meters, carrying about 2,000 stock-keeping units. Over 90 percent of those goods are private labels, allowing the retailer to bypass third-party distributors and strip out wholesale markups.

    To support that density, Aldi recently brought online its third major warehouse in East China, located in Nanjing. Supply chain capacity must be built before entering a new market, Chen said, pointing out that the distribution hub will let the company launch regional branches faster while balancing logistics costs, speed and inventory resilience.

    The Psychology of the Ten Yuan Anchor

    Price architecture drives the operational model. Between a quarter and a third of all products on Aldi shelves in China sell for less than CNY10 (USD1.49). Merchandise buyers identify the band between CNY9.90 and CNY12.90 as the critical psychological threshold to secure impulse basket additions, with shopper conversion dropping steeply once single-item pricing crosses CNY13.

    Domestic rivals including Kinglomo, Mart Fresh and Sanjiang Shopping Club are competing aggressively around the same ten-yuan price point. Across Chinese retail, discount formats and membership warehouse clubs remain the sole grocery models gaining share in an otherwise strained consumer environment. Warehouse clubs serve mid-to-high-income households buying in bulk, leaving discount supermarkets to mop up high-frequency foot traffic with low-cost daily necessities.

    Supplier Margins and Format Risk

    Aldi is betting that intense urban density inside the Yangtze River Delta can insulate it from the deflationary price battles hurting conventional hypermarkets. Big-box grocery chains across eastern China have struggled with large physical footprints and costly vendor fees, creating opportunities for smaller neighborhood stores. By leaning on local manufacturing for proprietary labels, the chain protects gross margins that traditional grocers lose to national brand allowances.

    The risk sits in category depth and supplier stickiness. Regional domestic operators have copied the limited-assortment private-label model with faster localized sourcing cycles, while suppliers face shrinking margins under Aldi’s cost-plus purchasing contracts. If identical ten-yuan staple goods saturate local wet markets and convenience chains, retaining customer traffic will require constant product rotation rather than price cuts alone.

    Building Out East China Footprint

    Aldi entered the Chinese mainland market in 2019, initially using cross-border e-commerce before setting up physical neighborhood locations across Shanghai. Over the subsequent five years, it calibrated its assortment from imported European specialty foods toward domestic hard discount, steadily pushing out of Shanghai’s central wards into secondary cities across Jiangsu.

    The immediate benchmark is the completion of the 2026 expansion schedule, which requires delivering the remaining pipeline of the planned 60 openings to hit the 150-store fleet total before the close of December.

  • DFI Directs over Half Its AI Efforts to Merchandising Across 7,600 Stores

    DFI Directs over Half Its AI Efforts to Merchandising Across 7,600 Stores

    DFI Retail Group is directing more than half of its artificial intelligence work towards business transformation, reinvention and innovation, prioritising merchandising across its network of over 7,600 stores in 12 Asian markets. Speaking at the Retail Asia Summit 2026 in Hong Kong, Stijn Casneuf, data & AI automation director, warned that retailers spreading investments across too many simultaneous use cases risk missing measurable returns.

    “Retailers need to focus on initiatives that deliver tangible value rather than adopt AI simply because it is gaining traction,” Casneuf said. Merchandising receives the largest share of attention because improvements directly influence both revenue and profitability, with remaining resources directed to internal productivity gains.

    DFI launched AI supply chain forecasting around one-and-a-half years ago, blending internal enterprise data with weather metrics and holiday calendars to lift prediction accuracy. Having begun restructuring fragmented data systems a year ago to enable effective scaling, the pan-Asian operator is now recording its first wave of operational benefits.

    Building the AI Control Tower

    To coordinate the roll-out, DFI established an internal AI Control Tower comprising representatives from people and culture, technology and cyber security, finance, corporate communications, legal, and AI. The team assesses proposed initiatives against business priorities, shareholder value, customer trust, and team member impact before evaluating technical fit, security, and legal requirements.

    The Control Tower reports directly to the Management Committee, with updates also provided to the board. Casneuf said this structure helps the company concentrate resources on a prioritised set of high-value projects. “We are also taking a hybrid approach to large language models (LLMs), assessing Chinese and Western models according to the requirements of each application,” he added.

    Fixing the Master Data Floor

    DFI’s AI strategy spans four areas, covering merchandising, customers, and storefront store support centres. On the customer side, the group is exploring how the technology can improve product discovery and shopping journeys across digital channels.

    The group is piloting large language models to generate product descriptions by drawing on enterprise resource planning (ERP) data and predefined market best practices. With millions of stock-keeping units across its banners, commercial and master data teams validate the AI-generated descriptions rather than writing them manually, improving searchability and catalogue discovery.

    The Enterprise Automation Race

    Beyond current workflow pilots, Casneuf indicated that DFI is monitoring longer-term shifts in consumer interaction and autonomous ordering technologies. “Agentic shopping remains at an early stage, but DFI has a clear strategy for how customers could eventually use AI agents to shop through its own platforms,” he said.

    The disciplined deployment model reflects a broader shift among regional mass merchants seeking to extract verifiable financial returns from machine learning rather than maintaining speculative laboratory tests. By grounding deployment in core data restructuring and strict executive oversight, DFI is positioning automated forecasting and automated catalogue administration at the center of its regional operations.

    Early Replenishment Results

    DFI began restructuring data processes a year ago and is now starting to see the first wave of benefits. As the company continues to advance, it expects to unlock even greater value and impact across its 12 regional markets.

    RetailNews Asia will track whether DFI’s agentic shopping pilots move from internal tests into live customer applications during upcoming fiscal periods.

  • Animals Like Us Rolls into 750 Coles Stores

    Animals Like Us Rolls into 750 Coles Stores

    New Zealand pet nutrition company Animals Like Us rolled its RawMix33 range into more than 750 Coles supermarkets across Australia on October 29. The deal puts the brand directly onto mainstream grocery shelves nationwide alongside an online launch on the grocer’s digital storefront.

    The national rollout covers one-kilogram packs across two formulations: Grain-Fed Beef and Ocean Fish. The shelf-stable line blends 67 per cent high-protein kibble with 33 per cent freeze-dried meat and organ pieces sourced from New Zealand farms and fisheries to meet AAFCO standards.

    Supermarkets squeeze specialty pet chains

    Coles secured the stock after the manufacturer tracked over 100 per cent year-on-year sales growth in Australia through its prior network. The brand previously limited Australian distribution to rival grocer Woolworths and pure-play platform Pet Circle.

    Supermarket operators across the region are taking margin back from independent pet shops and veterinary clinics. Freeze-dried and raw-blend pet feeds once required dedicated trips to specialty retail outlets or temperature-controlled logistics networks. Dry shelf-stable formats let grocers stock high-ticket items in ordinary ambient aisles without investing in floor chillers.

    Traditional pet chains face direct pressure from the shift. When major grocery networks stock high-protein formulations, specialty pet shops lose the frequent basket visits that generate repeat footfall. Coles gains a high-value SKU that lifts register totals, while Animals Like Us secures physical shelf space across hundreds of suburban locations simultaneously.

    Sourcing pressure and execution risks

    The operational risk sits on the supply chain. RawMix33 relies entirely on animal proteins sourced in New Zealand, exposing production schedules to regional livestock slaughter rates, marine catches, and processing plant capacity. Freeze-drying meat requires heavy capital expenditure and precise moisture removal, leaving little slack when retail volume jumps overnight across 750 stores.

    Cost inflation poses another hazard. High-protein dog foods carry retail prices well above legacy cereal-based feeds. Supermarkets are taking on premium inventory at a time when household budgets face persistent inflation, testing shopper willingness to trade up for pet provisions.

    Scaling beyond domestic shores

    Animals Like Us founded its business in New Zealand in 2020. The firm built its base locally before pushing outwards into Australia, the United States, and Canada, using cross-border retail partnerships to test appetite before committing to wide store footprints.

    The immediate test for the manufacturer is maintaining shelf inventory across both Coles and Woolworths as reorder cycles trigger over the coming quarter.

  • Sheng Siong Posts Q3 Profit of $44.6 Million

    Sheng Siong Posts Q3 Profit of $44.6 Million

    Sheng Siong lifted third-quarter profit by 1.9 per cent to $44.6 million for the period ended Sept 30, up from $43.7 million a year earlier, driven by new outlets and stronger comparable sales.

    Revenue rose 6.2 per cent to $441.5 million, compared with $415.5 million in the prior-year period. Earnings per share climbed 1.7 per cent to $0.0296 from $0.0291.

    The Singapore mainboard-listed supermarket chain attributed top-line growth to higher store numbers and improved same-store demand.

    New Floorspace Carries the Top Line

    Revenue growth came directly from new space and gains across existing aisles. The supermarket operator added eight stores in Singapore over twelve months, lifting its domestic network to 92 locations from 84. Total domestic retail space expanded to 799,775 square feet, up from 723,648 square feet in the prior-year period. Its footprint in China stayed flat at six outlets.

    Management acknowledged that discounting remains intense across the island. Sustained promotional campaigns across the grocery sector continue to squeeze receipts and operating margins, capping the flow-through from higher customer traffic.

    Wage Mandates Push Up Operating Costs

    Staff expenses climbed 9.3 per cent during the quarter to $71.6 million, compared with $65.5 million twelve months ago. The increase reflects state wage adjustments designed to lift compensation for lower-income retail staff across the island.

    Sheng Siong raised floor workers’ pay in September 2025 to comply with statutory Progressive Wage Model requirements for the retail industry. Management identified further overhead pressure coming from updated National Wage Council guidelines spanning 2026 and 2027.

    Cross-Border Shopping Threatens Basket Sizes

    Domestic grocers face a shifting competitive perimeter as regional transport links near completion. The Johor Bahru-Singapore Rapid Transit System Link, scheduled to begin passenger service in February 2027, will allow Singapore residents to cross the border into Malaysia in minutes. That connection threatens to siphon off household spending on packaged groceries and personal care goods, where price differentials between the two markets remain wide.

    For mass-market grocers, structural wage inflation combined with cross-border retail leakage leaves little room for pricing missteps. While premium supermarket operators serve a demographic less inclined to haul pantry staples across the Causeway, Sheng Siong’s value-driven shopper base is directly exposed to Malaysian price competition. Defending market share will require tighter inventory turns and selective promotions that protect basket volumes without eroding gross margins.

    Securing Real Estate in Underserved Estates

    The latest performance extends a multi-year push into newly completed residential developments across suburban Singapore. Securing tenancy in public housing commercial spaces has allowed the company to generate steady revenue growth even as older outlets contend with baseline saturation.

    Shares of Sheng Siong fell 1.4 per cent to close at $2.80 on October 29 before the company released its financial statement.

    The retailer continues to target suburban pockets where it lacks coverage.

    Looking ahead, we will continue to prioritise expansion in areas where the group has limited presence, to extend our reach to customers

    said Lim Hock Chee, group chief executive of Sheng Siong.

    Attention now turns to government commercial lease tenders over the coming quarter, where Sheng Siong must secure additional suburban sites to sustain floor-space growth ahead of the 2027 transit link opening.

  • Coles Falls Behind Rival Woolworths as Sales Grow 2.2 per Cent

    Coles Falls Behind Rival Woolworths as Sales Grow 2.2 per Cent

    Coles Group booked first-quarter revenue of $11.2 billion, trailing primary rival Woolworths as shoppers cut spending across grocery aisles.

    Total sales rose 2.2 per cent year-on-year for the opening quarter of fiscal 2027, falling short of the 4.7 per cent expansion delivered by Woolworths over the same stretch.

    Supermarket Volumes Under Inflationary Squeeze

    Supermarket operations at Coles lifted 2.7 per cent on a comparable basis, an outcome that lagged domestic price rises. Headline inflation hit 4.3 per cent in the twelve months through September, according to data from the ABS. With grocery price tags climbing faster than overall register revenue, underlying sales volumes shrank across the store network.

    Customers managed stretched household budgets by splitting their weekly grocery shopping across multiple chains. Shoppers pursued weekly promotions, relied more heavily on loyalty incentives, and selected store-brand goods over premium labels. Leah Weckert, managing director and chief executive of Coles Group, pointed to structural shifts in weekly shopping habits across the country.

    “While supermarket sales growth remained in line with the prior quarter, we know household budgets are under pressure, and customers are shopping more deliberately across retailers and channels,” Weckert said.

    Digital Channels Outpace Physical Stores

    E-commerce delivered the fastest sales momentum across the business, rising 22.9 per cent during the three-month period. Digital grocery orders proved popular among households seeking to monitor running totals and avoid impulse purchases at the shelf edge. The private label range Exclusive to Coles also added sales volume as shoppers turned away from costlier branded goods.

    Elevated operating expenses offset that digital expansion. Coles informed market analysts that higher diesel and transport fuel costs pushed distribution overheads higher across its supply chain. Regional geopolitical tension added shipping volatility, limiting the earnings use the retailer could extract from top-line revenue gains.

    The Margin Gap Widens Between Chains

    Woolworths established a clear sales advantage by generating $19.4 billion during the corresponding quarter. Capturing 4.7 per cent revenue growth allowed the largest grocer to absorb fixed supply chain costs more effectively than Coles. Scale provides Woolworths with superior margin protection when negotiating trade discounts from food manufacturers and logistics contractors.

    Coles faces tough commercial trade-offs leading into the peak December quarter. Matching Woolworths on promotional discounts risks sacrificing retail gross margin, while leaving prices unchanged risks surrendering foot traffic to rival stores. Price competition will compress supplier rebates across fresh produce and packaged groceries through the end of the year.

    Earlier Performance and the Road to December

    Supermarket sales growth tracked at the same modest level recorded during the prior quarter. Household wallets tightened through winter as high interest rates and elevated electricity tariffs reduced discretionary household expenditure across metropolitan areas.

    Focus shifts to the Christmas trading stretch, which historically accounts for the largest share of annual grocery operating profits. Coles plans to adjust its promotional pricing program over the coming weeks to defend customer retention before the half-year fiscal 2027 audit.

  • Robinsons Retail Opens First Little Marketplace Store in Boracay

    Robinsons Retail Opens First Little Marketplace Store in Boracay

    Robinsons Retail Holdings, Inc. (RRHI) expanded into convenience retail on Oct. 30 with the opening of its first Little Marketplace store at Henann Crystal Sands Resort in Boracay.

    Located in Station 1, the beachfront outlet operates daily from 7 a.m. To 10 p.m., condensing the group’s upscale supermarket format into a smaller footprint tailored for both residents and visitors.

    The pilot store carries specialty groceries, ready-to-eat meals, fresh food, beverages, and travel essentials alongside a Pick & Grill counter for on-site meat preparation and an alcohol-serving bar.

    Combining Groceries With Foodservice

    The concept departs from standard Philippine convenience chains, which lean almost entirely on ambient packaged goods, single-serve snacks, and basic hot counters. By embedding prepared food service into a small space, the company wants to turn quick grocery stops into sit-down dining occasions that lift basket sizes well above typical convenience tickets.

    Store operations draw inventory directly from the supply lines of The Marketplace, the group’s full-line gourmet supermarket banner. The pilot relies heavily on tourists willing to spend metropolitan supermarket rates while staying on an island where logistics add substantial distribution costs.

    Pressures on Island Logistics

    Operating a premium fresh food counter on Boracay carries operational friction that mainland supermarkets rarely encounter. Chilled meats, draft beer kegs, and perishable ingredients require consistent cold-chain transport over sea freight, leaving margins exposed to shipping disruptions and power fluctuations.

    Robinsons Retail is betting that beachfront location inside a major resort complex offsets those overheads through bar sales and premium markups.

    Extending The Marketplace Brand

    The parent firm built The Marketplace around upscale urban centers, stocking imported specialty lines, cheeses, and butchery products for middle- and upper-income households. Little Marketplace strips out the center-store dry goods and broad household categories of those full-sized supermarkets, retaining only high-turnover pantry items, alcohol, and fresh proteins.

    Executive leadership identified tourism hubs as the primary testing ground for the condensed model, citing shifting habits among travelers who want convenience without downgrading from gourmet grocery offerings.

    “We believe this format addresses growing demand for premium yet accessible retail and dining experiences,”

    Said Christine Tueres, RRHI managing director for food segments, big formats.

    Next Steps for the Pilot

    RRHI framed the Boracay location as an operational test before rolling the format into other domestic tourist corridors and lifestyle developments. Executives have not released capital expenditure figures or specific store count targets for Little Marketplace.

  • RedMart Now Orders Grow Sixfold in Singapore

    RedMart Now Orders Grow Sixfold in Singapore

    RedMart expanded its express grocery delivery network across Singapore after daily orders for RedMart Now jumped sixfold following its February launch.

    The supermarket arm of Lazada Group S.A. Quadrupled its delivery fleet and launched three fulfilment centres to handle the surge in quick-commerce volume.

    Service expanded into northern and north-eastern Singapore in August and the east in October, while same-day capacity for scheduled deliveries tripled this year under RedMart head Martin Daney.

    Express Logistics and Fresh Food Demand

    RedMart Now operates on delivery windows starting from 30 minutes, relying on localized inventory nodes rather than single centralized warehouses. The express catalogue holds a fraction of the broader platform inventory, which stocks more than 120,000 items.

    Chilled food, meat, dairy, fresh vegetables and seafood represent a larger proportion of express purchases than scheduled runs. Morning shopping begins at 7 a.m. Each day, driven by shoppers seeking recipe ingredients and daily replenishment rather than bulk pantry restocking.

    Delivering groceries in as fast as 30 minutes requires having inventory positioned closer to customers, efficient picking and packing, and having sufficient delivery capacity, including at peak times.

    The Unit Economics of Fast Fulfilment

    Quick commerce models across Southeast Asia routinely struggle with delivery density and high labour overheads. By using existing Lazada warehouse infrastructure and logistics software built over a decade, RedMart limits the steep capital outlays that broke earlier standalone grocery startups in the city-state.

    For brick-and-mortar supermarket chains, faster online fulfilment puts pressure on local store margins. Physical grocers must balance counter service with picking staff in aisles or build costly mini dark stores of their own.

    Capitalizing on Singapore’s Quick Commerce Base

    Singapore’s quick commerce sector reached a valuation of $368.03m in 2025 and projections place it at $502.86m by 2031, according to data from Mordor Intelligence. The expansion follows months of testing routing software to sustain order accuracy as route volumes grew.

    RedMart has not disclosed the precise share of revenue that express drops contribute against its planned grocery run. The scheduled delivery service continues to handle the bulk of overall sales volume.

    The Final Pockets of Island Coverage

    Coverage remains uneven across Singapore, with multiple central and western postal codes still outside the 30-minute delivery zone. The company is directing fleet capacity toward those remaining gaps to complete nationwide reach.

  • Thailand Caps Retail Credit Terms at 45 Days

    Thailand Caps Retail Credit Terms at 45 Days

    Thailand’s competition regulator has capped trade credit terms at 45 days for large retailers dealing with small suppliers, backing the rule with fines of up to 10 per cent of revenue.

    The Trade Competition Commission of Thailand (TCCT) issued the binding notification in the Royal Gazette this month, taking aim at wholesalers and retailers generating over 500 million baht in annual turnover across department stores, specialty shops, supermarkets, hypermarkets, cash-and-carry outlets and convenience networks.

    Under rules taking effect in November, payment windows between large retail operators and commercial, manufacturing or service SMEs cannot exceed 45 days unless a shorter schedule is agreed. For agricultural produce and basic processed farm goods, settlements must conclude within 30 days. Consignment terms start when agreed volumes sell in full, whereas standard shipments begin the cycle once deliveries arrive complete with proper documentation.

    Violators of this notification could face a fine of up to 10% of their revenue in the year in which the offence occurred, or up to 1 million baht if the offence occurs during their first year of operation.

    Investigating Encroachment on Franchisees

    Beyond payment terms, the TCCT is deploying investigative teams to Phetchaburi and Lampang provinces to inspect convenience store networks and traditional mom-and-pop grocers. Evidence gathered through the regulator’s Mobile Competition Clinic revealed parent chains frequently open company-owned corporate outlets directly beside existing franchisees, cannibalising store traffic after collecting upfront licensing fees.

    Retail operators told authorities that extra units meet high local shopper density that single stores cannot serve. Pol Col Songsak Raksaksakul, vice-chairman at the TCCT, dismissed the contractual defense during preliminary hearings.

    Even if contracts allow this practice, the fairness of such agreements is questionable under fair-trade principles, Pol Col Songsak noted.

    The commission is also scrutinising whether dominant supermarket operators abuse consignment arrangements. Multiple SME groups reported that after their packaged items established strong sales on modern trade shelves, chains launched copycat house-brand alternatives, while the TCCT is examining whether unilateral changes to product shelf positions constitute an unfair trade practice.

    Pressure on Working Capital Models

    Thai retail chains have long operated by funding store rollouts through supplier credit. Forcing payments out within 30 to 45 days removes cheap short-term financing that supported rapid network expansion across provincial capitals. Chains must now decide whether to reallocate working capital or prune marginal product lines to keep cash conversion cycles tight.

    Suppliers gain needed balance sheet relief, but small brands risk immediate pushback from category managers. Supermarket buyers faced with strict payment liabilities often rationalise stock keeping units, favouring larger multinational consumer goods conglomerates that supply higher volumes and absorb rebate deductions without dispute.

    Zoning and Local Sourcing Mandates

    The field investigations in Phetchaburi and Lampang wrap by late November, alongside focus groups scheduled early in the month to measure consumer and merchant sentiment. Data from those sessions will shape an enforceable retail code of practice and feed policy guidance to urban planning authorities and local administrative organisations.

    The Turn from Voluntary Guidelines

    The statutory credit notification replaces voluntary terms that big retailers routinely bypassed. TCCT commissioner Warawan Chitaroon said that while the watchdog published voluntary guidelines previously, extended payment delays persisted because corporate buyers faced no statutory teeth. Formal publication in the Royal Gazette converts credit schedules from advisory best practices into enforceable law.

    The statutory credit rules take effect in November, while the TCCT plans consultations with retail operators before drafting the formal code of conduct on store positioning and franchising practices.

  • Australia Ships First Ecoganic Bananas to Japan After 28 Years

    Australia Ships First Ecoganic Bananas to Japan After 28 Years

    Australian grower Pacific Coast Eco Bananas has begun shipping its red-wax-tipped bananas to Japan, marking the country’s first “ecoganic” export after 28 years of development.

    Founder Frank Sciacca established the certified cultivation method in 1998 to rebuild depleted soil and counter pest outbreaks without heavy synthetic chemical treatments.

    The proprietary farming system yields bananas that are sweeter and last longer on store shelves than standard varieties, helping the operation break into a competitive Asian grocery sector.

    Chemical cuts

    Grower Frank Sciacca started the farming system in 1998 in Australia. Heavy chemical applications had drained farm soil health and multiplied pest infestations across his acreage. Sciacca stripped out standard commercial sprays in favour of ecological management, creating fruit that lasts longer on supermarket shelves and delivers higher sugar readings.

    Workers dip the fruit tips in bright red wax prior to packing. The visual marker separates the produce from conventional Cavendish stock inside wholesale terminals and retail display cases.

    Targeting premium produce aisles

    Japanese grocery buyers pay steep markups for imported fruit with verified clean-agriculture credentials.

    Premium grocers across Japan manage tight display footprints and penalise stock that spoils fast under store lighting. The longer shelf durability of the ecoganic product gives distribution partners wider stocking windows across metropolitan distribution hubs.

    Expansion across Pacific trade lanes

    Pacific Coast Eco Bananas worked for nearly three decades refining yields before clearing regional export standards for East Asia. Australian horticultural exporters face strict biosecurity protocols when clearing shipments into Japanese import terminals.

    Retailers in Japan will track clearance volumes through major ports as the brand tests broader supply lines across the Asia-Pacific network.

  • Coles Selects Coveo for AI Search Across Online Grocery Platform

    Coles Selects Coveo for AI Search Across Online Grocery Platform

    Coles Group Limited selected Montreal-based enterprise software provider Coveo Solutions Inc. On Oct. 22, 2026, to deploy AI search and product discovery tools across coles.com.au.

    The partnership aims to help digital shoppers navigate Coles’ extensive grocery catalog with greater speed and accuracy. Coveo’s AI-Relevance system evaluates customer intent, context, browsing behavior, and product data to deliver personalized search results and recommendations.

    The deployment serves Coles’ nationwide network of over 1,800 retail outlets, backed by more than 115,000 team members and 8,000 suppliers serving millions of shoppers every week.

    Algorithmic discovery for digital supermarket aisles

    Coveo’s AI-Relevance technology brings together shopper intent, context, behavioral signals and product data to present each customer with the results and recommendations most relevant to them. For a large, constantly changing grocery range, that means a more intuitive experience for shoppers.

    “We’re always looking for ways to make shopping with Coles easier for our customers, and search is an important part of the online experience,” said Ben Levinson, general manager of digital product at Coles. “Coveo demonstrated that its technology will make it easier for customers to find the products they are looking for, and we look forward to continuing to improve the Coles online shopping experience.”

    The competitive battle for digital basket building

    “Helping Australians find their everyday grocery products faster and easier is a great opportunity for Coveo” said Alexander Mahr, managing director, APAC, at Coveo. “We’re proud to support Coles as it creates a smarter, more intuitive online grocery experience for customers across Australia.”

    Coles is one of Australia’s leading retailers, with an extensive footprint of over 1,800 retail outlets nationally. The company employs more than 115,000 team members, engages with more than 8,000 suppliers, and serves millions of customers through its store network and digital platforms every week.

    Integrating tech into omnichannel distribution

    Coveo brings superior AI-Relevance to every point-of-experience, transforming how enterprises connect with their customers and employees to maximize business outcomes.

    Relevance is about moving from persona to person, the degree to which the enterprise-wide content, products, recommendations, and advice presented to a person online aligns easily with their context, needs, preferences, behavior and intent, setting the competitive experience gold standard. Every person’s journey is unique, and only AI can solve the complexity of tailoring experiences across massive, diverse audiences and large volumes and variety of content and products.

  • Coles Adopts MTick Menopause Label Across 200 Products in Australia

    Coles Adopts MTick Menopause Label Across 200 Products in Australia

    Coles will introduce MTick menopause certification across more than 200 items in Australian stores and online, partnering with advocacy group GenM to standardise product labelling for midlife women.

    The agreement covers food, skincare, personal care and dietary supplements across an Australian market where GenM estimates 4.5 million women currently navigate perimenopause and menopause.

    Implementation begins with an online educational hub before purple MTick identifiers appear on physical shelves and digital storefronts early next year. The accreditation scheme checks products against 48 recognized symptoms of menopause, including sleep disruption, skin alterations, dry eyes, cognitive fatigue and intimate health needs.

    Shelf Signage and Digital Hubs

    Physical stores will install dedicated point-of-sale badging to help consumers spot qualifying inventory quickly during routine grocery trips. Online, Coles will index qualifying lines into dedicated search filters linked to informational guides detailing common physiological transitions.

    GenM manages the certification process, vetting third-party formulations against ingredient standards and consumer testing guidelines before clearing items to display the purple symbol. Brand owners pay verification fees directly to the standard holder to qualify individual product lines for placement.

    The GenM Standard and UK Precedents

    British grocers and pharmacies created the template that Coles is now transplanting into the southern hemisphere. Retailers including Tesco, Asda, Sainsbury’s and health-and-beauty chain Boots already display MTick iconography across an international inventory pool exceeding 4,000 certified stock-keeping units.

    For Australian retail operators, category tagging creates margin opportunities in aisles that historically functioned as low-margin convenience stops. Supermarkets can capture wellness revenue by aggregating high-margin items such as targeted serums, magnesium formulations and sleep supplements into visible health sub-categories.

    Pharmacy Competition and Category Margins

    Pharmacy chains built Australia’s baseline market for dedicated wellness merchandising, leaving grocers to fight for basket share. Community pharmacy group TerryWhite Chemmart previously added MTick shelf tags to recruit shoppers seeking guidance on hormonal health transitions.

    By establishing certified shelf space in high-frequency supermarkets, Coles puts direct commercial pressure on independent pharmacies and banner groups that rely heavily on discretionary personal care sales. Suppliers must now balance slotting allowances and certification audits if they want shelf access in both distribution channels.

    Rollout Schedule and Brand Recruitment

    Health and beauty manufacturers in Australia have spent recent years reformulating private-label and branded ranges to satisfy rising demand for transparent personal care claims. Several local brands secured MTick approval ahead of the supermarket launch to guarantee distribution when shelf changes take effect.

    Coles plans to begin deploying the online resource centre in early 2027, followed by storewide rollouts of shelf tags as certified supplier stock enters its distribution centres.

  • Pryme Snacks Launches Wagyu Jerky Across Coles Nationwide

    Pryme Snacks Launches Wagyu Jerky Across Coles Nationwide

    Pryme Snacks launched its Wagyu jerky across all Coles supermarkets nationwide in October 2026, marking the brand’s largest grocery distribution milestone to date.

    National shelf space across major grocers

    Co-founder Eylon Levy said the Coles agreement transitions the company into a brand with national reach across major retail channels.

    Gaining direct access to major grocery aisles shifts the company from niche distribution to mass consumer volume. Securing national distribution at Coles requires maintaining consistent supply across state distribution centres, testing the company’s manufacturing capacity.

    Expansion through transport and forecourt channels

    The Coles rollout follows a series of retail partnerships secured over the past eighteen months. Pryme Snacks gained entry into forecourt retail through an expansion into Ampol service stations in April.

    Travel retail followed four months later. By August, the company placed its jerky into WHSmith outlets across Australian domestic and international airport terminals, capturing impulse purchases from commuter traffic.

    Competition in premium protein snacking

    Meat snacks face heavy competition in Australian grocery aisles, where legacy brands dominate traditional beef jerky fixtures. Premium lines such as wagyu jerky target shoppers seeking higher-grade protein options, commanding higher price points than standard dried meat products.

    Supermarket placement gives independent snack brands high product visibility, but sustaining shelf allocation requires rapid stock turnover. Coles regularly reviews category sales rates, putting pressure on emerging producers to drive consumer uptake without eroding margin through heavy discounting.

    Distribution track record across Australia

    Pryme Snacks began building its wholesale footprint last year through distribution agreements with Metcash, which supplies independent grocers and the IGA network. That base provided the logistics foundation required before pitching national supermarket chains.

    With Coles stores now stocked, inventory turnover rates over the final trading quarter will determine whether the brand secures permanent ranged space and shelf extensions across the category.